Wednesday May 21 Housing and Economic stories

Top Stories:

Fannie CEO sees steep home-price drop - (www.ap.com) - Fannie Mae's CEO told shareholders Tuesday that the housing market is "about halfway through" its crisis and home prices could fall as much as 25 percent before the worst is over.
Overpaying For House Cripples Families - (www.eastvalleytribune.com) - In addition to dropping their asking price by $250,000 (now at $600,000), they've shelled out nearly $30,000 in landscaping, new kitchen countertops, a bathroom remodel and other improvements. They also offered a $10,000 bonus to the buyer's agent and $10,000 in closing costs, though they eliminated that incentive after the latest price cut. And at one point, they also tried lowering the price $1,000 a week.
Dodd, Shelby reach housing aid deal - (money.cnn.com) – According to these clowns (uh, key lawmakers): Taxpayers will not be on the hook if loans go bad. Ken comment: When government finally admits to a taxpayer bailout and begins forcing taxpayers to pay, remember these 2 names when considering people to blame.
As houses foreclose in U.S., squatters move in - (www.reuters.com) - Squatting is on the rise across the United States as foreclosures surge, eviction notices mount and homes go unsold for months, complicating the worst U.S. housing slump in a quarter century and forcing real-estate brokers to enlist the help of law enforcement and courts to sell empty houses. In some regions, squatting is taking on new twists to include real-estate scams in which thieves "rent out" abandoned homes they don't own. Others involve "professional squatters" who move from one abandoned home to another posing as tenants who seek cash from banks as a condition to leave the premises -- a process known by real-estate brokers as "cash for key."
Banks Falsify Income Statements - (www.bloomberg.com) - Banks and securities firms, reeling from record losses resulting from the collapse of the mortgage securities market, are failing to acknowledge in their income statements at least $35 billion of additional writedowns included in their balance sheets, regulatory filings show. Citigroup Inc. subtracted $2 billion from equity for the declining value of home-loan bonds in its quarterly report to the Securities and Exchange Commission on May 2 without mentioning the deduction in the earnings statement or conference call with investors that followed. ING Groep NV placed 3.6 billion euros ($5.6 billion) of negative valuations in its capital account, while disclosing only an 80 million-euro depletion to income.
Jevic Transportation shutting down - (www.philly.com) - The trucking firm Jevic Transportation Inc., of Delanco, announced today that it was ceasing operations after 27 years, a victim of high diesel and insurance costs as well as the tightened economy. The 1,500-employee national firm, with about 1,000 in Burlington County, making it one of the county's largest employers, said it would deliver all freight already within its system before closing entirely.
Citigroup Hedge-Fund Loss Weighs on Three Banks - (online.wsj.com) – Problems at Citi far from over, as they are still causing havoc across the industry.
Fears of longer credit crisis set to hit Wall St - (www.ft.com) - "We believe the real harrowing days of the credit crisis are still in front of us and will prove more widespread in effect than anything yet seen," Ms Whitney said.
Moody's error gave top ratings to debt products - (www.ft.com)
Accounting Errors at Franklin Bank Corp. Draw SEC’s Attention - (www.ml-implode.com) - "...,the audit found that Fanklin did not properly account for certain single family mortgage loan modification programs develop...
A Real Countrywide Email From Angelo Mozilo - Calls Homeowner Disgusting - (www.ml-implode.com)
Gen X, Gen Y, debt, and savings - (www.ml-implode.com) - Generally defined as those individuals now 27 to 43 years old, Gen Xers are far better represented by the millions of 40-year old spendthrifts who are just now realizing that their home isn't going to do all the heavy lifting for their retirement savings. Consumer debt is one of the main reasons. Nine out of 10 consumers in their 30s are in debt, compared with 76% of those in their 20s, according to the Federal Reserve's Survey of Consumer Finances. In a recent Charles Schwab study of more than 2,000 Gen Xers nationwide, 45% of respondents said they had too much debt to think about saving.


Other Stories:

NexCen shares plummet on going-concern warning - (www.ml-implode.com) - Consumer discretionary buyout firm NexCen Brands swoons. This was entirely predictable. Their last acquisition was last fall. ...
Thornburg to Announce Substantial First Quarter Loss - (www.ml-implode.com) - Thornburg Mortgage announced Monday that it will file its delayed first quarter earnings by June 2, with the company expecting a...
Mom forced to live in car with dogs - (www.ml-implode.com)
SEC Probes Franklin Bank; CEO Replaced - (www.ml-implode.com)
Avoiding financing a big black hole - (www.ml-implode.com)
NYT Editorial Promotes Bailout - (optionarmageddon.blogspot.com)
Low-Income Renters to Pay for Housing Bailout - (www.truthout.org)
No Bottom in Sight, Says NYU Prof - (finance.yahoo.com)
Far From Normal - (jameshowardkunstler.typepad.com)
Weak economy even if housing improves - (news.yahoo.com)
Housing Correction In U.S. Spreads Around Globe - (query.nytimes.com)
Foreclosure Buyers Frustrated By Banks - (www.9news.com)
Post-Subprime Economy Means Subpar Growth - (www.bloomberg.com)
Teeing Up the Next Mortgage Bust - (nytimes.com)
Real Estate Alarm in Taiwan - (au.news.yahoo.com)
Senator estimates "$1.4 quadrillion" loss - (www.denninger.net)
Gambling On Housing - (sbhousingbubble.blogspot.com)

Oil Rises to a Record After Pickens Says Prices May Reach $150 - (www.bloomberg.com)
U.S. Stocks Drop on Credit Concern, Producer Prices; Banks Fall - (www.bloomberg.com)
Dollar Falls on Oil Surge, Speculation ECB Will Keep Rates High - (www.bloomberg.com)

Producer Prices in U.S. Excluding Food, Energy Increase More Than Forecast - (www.bloomberg.com)
Only six S&P 500 companies have overfunded retiree health benefit plans - (www.financialweek.com)
Economic Tide Is Rising for Repo Man - (www.nytimes.com)
Bleak picture for economy - (www.chicagotribune.com)
Soros Sees Recessions Looming as `Acute Phase' of Crisis Passes - (www.bloomberg.com)
Food prices forecast to rise 5% in 2008 - (www.latimes.com)
Government Again Raises Forecast for Food Prices - (online.wsj.com)

Senate Leaders Agree on Housing Aid - (www.nytimes.com)
Buffett says effects of crisis ‘far from over’ - (www.ft.com)
At the luxury end, home prices are falling - (www.latimes.com)
CPDOs expose ratings flaw at Moody's - (www.ft.com)
Americans worry about funding a long retirement - (www.chicagotribune.com)
Convertible bond issuance hits year high - (www.ft.com)

Auto Slump May Have Broad Reach - (online.wsj.com)
Airlines now get lower ratings than the IRS, survey finds - (www.financialweek.com)
Lowe's profit drops 18% on housing slump - (www.latimes.com)
Campbell's Cools - (www.forbes.com)
Home Depot reports 1Q profit drop - (www.startribune.com)
New Cellphone Purchases Decline in U.S. - (online.wsj.com)
AIG Increases Plan to Raise Capital to $20 Billion - (www.bloomberg.com)

Hard times starting to hit euro area - (www.startribune.com)
Australian Central Bank Debated Rate Increase in May - (www.bloomberg.com)
German Investor Confidence Unexpectedly Fell in May - (www.bloomberg.com)
Asia exporters find ways round US storm - (www.ft.com)
George Soros: worst to come for UK economy - (www.telegraph.co.uk)
Doubt cast on Bank’s inflation credentials - (www.ft.com)