Monday May 19 Housing and Economic stories

Top Stories:

Fed Collateral Worries Volcker - (online.wsj.com) – Yes, the government bailout of the banks has begun. Since the credit crisis began last August, the Fed has expanded the volume and types of loans it is willing to make to banks and securities dealers -- loans that are backed by a wide variety of collateral from subprime mortgages to student loans. It has so far not directly purchased such debt. It did, however, make an unprecedented loan of $29 billion to facilitate the sale of Bear ...
Banks delayed action on most overdue mortgages - (www.idahostatesman.com) - Lenders wanted to avoid big losses in the fourth quarter of last year, so they delayed action on the bulk of overdue mortgages.
Ex-real estate agent accused of holdup during open house - (sanluisobispo.com) – Hmmm, is anyone surprised by these types of stories? Nope J
FDIC Grows Wary of Brokered Deposits - (online.wsj.com) - Those worries were highlighted by federal regulators' decision earlier this month to close ANB Financial, the third bank to fail this year. Management of the $2.1 billion bank had actively sought out brokered deposits. ANB Financial, based in Bentonville, Ark., used these brokered deposits to turn around and fund various real-estate loans that started to deteriorate with the decline in the housing market.
Fannie, Freddie Called Weak in Capital Base - (online.wsj.com) - With that skimpy capital cushion, the government-sponsored companies "could pose significant risk to taxpayers as well as to financial institutions and other investors," the regulator, James Lockhart, director of the Office of Federal Housing Enterprise Oversight, said at a conference in Chicago.
Nordic Central Banks Lend Iceland 1.5 Billion Euros - (www.bloomberg.com) Iceland received an emergency loan facility from Nordic central banks to shore up the krona and avert an economic collapse.
The currency, which has tumbled as much as 26 percent against the euro this year, rallied 4.7 percent after Denmark, Sweden and Norway agreed to provide the loan facility of 1.5 billion euros ($2.3 billion).
Saudis Rebuff Bush, Politely, on Pumping More Oil - (www.nytimes.com) - Bush blaming OPEC for oil production when really the US Government decision to devalue the dollar is causing all commodity and food prices to go up.
U.S. Builders Broke Ground on Fewest Houses Since '91 - (www.bloomberg.com)
Record condo numbers to saturate Chicago - (www.chicagotribune.com)
Recovery From Housing Slump Comes With Angel - (www.bloomberg.com) - ``You buy the mortgage for pennies on the dollar, carry the big stick, tell the homeowner how it's going to be, then double your money very easily,'' Gutierrez said. Yes, another scam industry is forming.
As Gas Prices Spike, Suburban House Prices Fall - (blogs.wsj.com)


Other Stories:

Fannie Eliminates Declining Markets LTV Restrictions - [2008-05-18] - "Ceding to pressure from consumer groups Fannie Mae eliminated its declining market LTV restrictions policy which required under...
Decession or Depression? - [2008-05-18] - For two years, I have been writing about what I call a Decession, which is far worse than a Recession, but not as bad as a Dep...
Estimated Relative Standard Errors in Housing Data - [2008-05-17] - "You used to discuss the Commerce Dept.'s standard statistical error regularly. In light of that surprising Housing Start number...
Page 33 News and More Small Print - [2008-05-17] - "Don’t look now but the FDIC has finally figured out that they have a problem with “brokered deposits”. These are sold through t...
Home sellers turn to new ally, tax grievance assessors - [2008-05-17] - "many home sellers have resorted to challenging their property assessments. They're contacting assessors in droves. Some pay hun...
Surprising real estate surprises - [2008-05-16]
BB&T Nixes Subprime Wholesale Unit - [2008-05-16]
Fannie Steps Back on Declining Market Policy for Downpayments - [2008-05-16]
Focus shifts to HELOCs - [2008-05-16]
FDIC's Bair: Housing crisis is a national problem - [2008-05-16]
WaMu to Shut Off Home Equity Lines - [2008-05-16]
SunTrust Stops HELOC’s TODAY!! MUST SUBMIT TODAY - [2008-05-16]
California Leads Way To Consumer Bust - [2008-05-16]
Housing Starts Plunge 30.6% - [2008-05-16]
Downey’s Option ARM Woes Continue to Grow - [2008-05-16

CA has highest no doc and bad loan percentages - (Mish at globaleconomicanalysis.blogspot.com)
Affluent Can No Longer Afford Their Mortgages - (www.washingtonpost.com)
White House and Congress Battle Over Housing Bill - (www.efinancedirectory.com)
Housing Outlook: Decession or Depression? - (realestateandhousing2.blogspot.com)
Markets May Be in 'Eye of Hurricane' - (www.bloomberg.com)

It’s Not Just Petroleum, All Imports Cost More - (www.nytimes.com)
Bernanke: Banks must get better at foreseeing risk - (www.chicagotribune.com)
Senate Short of Agreement on Housing Rescue - (www.washingtonpost.com)
SF East Bay Data for Q1 2008 - (eastbayhousingbubble.blogspot.com)
Collateral Foreclosure Damage for Condo Owners - (www.nytimes.com)
Countrywide in yet deeper shit - (news.yahoo.com)
Credit rating agencies are untrustworthy - (www.foxbusiness.com)
Volcker warns that '70s-Style Inflation Possible - (www.nytimes.com)
Bernanke's Bubble Laboratory - (online.wsj.com)
U.S. Economy: Confidence Slumps, Single-Family Home Starts Fall - (www.bloomberg.com)
Mortgage Bailout Infuriates Tenants (And Steve Forbes) - (online.wsj.com)
For Wall Street Workers, Ax Falls Quietly - (www.nytimes.com)

A Gamble That Went Bust - (online.wsj.com)
Scholes, Nobel Laureate, Says Credit Crisis May Not Be Over - (www.bloomberg.com)
Subprime hangover lingers over bank earnings - (www.reuters.com)
J.C. Penney says profit fell 50 percent, will again - (www.dallasnews.com)
Rio Tinto Faces Iron-Ore Boycott - (online.wsj.com)
Fannie Is Poised to Scrap Policy Over Down Payments - (online.wsj.com)
Belts tighten at food show - (www.chicagotribune.com)
Nordstrom 1Q profit sinks 24 pct on economy - (www.chicagotribune.com)
Another problem parent - (www.economist.com)
Logan sees drop in US travel in '08 - (www.boston.com)
India's Inflation Unexpectedly Accelerates on Food - (www.bloomberg.com))
What a Deal: Trash for Treasuries - (www.nytimes.com)
Color-Blind Merrill in a Sea of Red Flags - (www.nytimes.com)