Friday June 13 Housing and Economic stories

Top Stories:

Lieberman Seeks Limits to Reduce Commodities Speculation - (www.nytimes.com) – Folks, Joseph Lieberman is one of the most dangerous and crooked politicians in the US. He is trying to regulate markets from his Homeland Security post. He is now trying to prevent US citizens from investing in ETFs (Exchange Traded Funds) that bet on commodity prices. This is one of the only ways left to prevent the loss of your wealth through the US intentional devaluing of the dollar.
So Much For Free Markets: Federally Sponsored Mortgages at 90% Share - (www.ml-implode.com) – Yes, almost 100% of all loans being originated are being bought by Fannie Mae, Freddie Mac, and FHA. The US government has gone from being the biggest player in the mortgage market to being just about the only player. Per recent reports sent by an alert reader, Freddie Mac and Fannie Mae now finance 80% of all mortgages, and the FHA guarnatees another 10%, so these entities now come close to having mortgage finance all to themselves
Pritzker, Predatory Subprime Pioneer, Still On Obama Team - (www.ml-implode.com) - But there is another close associate on Barrack Obama’s campaign that has flown below the media “moral character” radar… someone who makes Johnson look like an amateur.
Of course I am speaking of Penny Pritzker, billionaire (net worth $2.8 Billion US and ranked 135th on the Forbes List of Richest Americans) hotel heiress (Hyatt) and president of the Pritzker Realty Group. Also notably former president of the failed Superior Bank in Chicago. Currently she is the national finance chairwoman of Barack Obama’s presidential campaign. Let’s take a look at the Bank that Pritzker was connected to. She knew exactly what she was doing and what the bank’s loans were doing to the people of her community and of our country: OTS Closes Superior Bank FSB; Hinsdale, Ill. Thrift is Insolvent. Superior Bank suffered as a result of its former high-risk business strategy, which was focused on the generation of significant volumes of subprime mortgage and automobile loans for securitization and sale in the secondary market. OTS found that the bank also suffered from poor lending practices, improper record keeping and accounting, and ineffective board and management supervision.
Fannie, Freddie STILL putting taxpayers on hood for no-cash mortgages - (www.nashuatelegraph.com) Despite the bursting of the housing bubble, it's still possible to buy homes with no money down. In fact, it's possible to borrow up to 105 percent of the purchase price, leaving the buyer with more debt than the house is worth. It might sound like a pitch from a late-night infomercial. But the offer comes from Freddie Mac and Fannie Mae, two government-chartered companies with potentially conflicting mandates to uphold prudent lending standards and make homeownership more attainable.
FHA In Jeopardy? - (www.nuwireinvestor.com) With all the talk coming from politicians about how they plan to use the FHA to save the housing market and the economy, it may be a shocker to know that the FHA is struggling mightily right now. The FHA had to withdraw $4.6 billion from its $21 billion capital reserve fund in May to cover losses, according to the New York Times. “Let me repeat: F.H.A. is solvent,” FHA commissioner Brian Montgomery said Monday in a speech at the National Press Club, according to the New York Times. “However, no insurance company can sustain that amount of additional costs year after year and still survive. Unless we take action to mitigate these losses, F.H.A. will soon either have to shut down or rely on appropriations to operate.”
US house prices may dip 30 pct, junk bonds weaken - (www.reuters.com)
Moody’s May Align Municipal Debt Ratings With Corporate - (www.nytimes.com) – Again, the rating agencies are being influenced by their largest customers. Now that the mortgage rating market has dried up, municipalities, states, and cities are the best customers for the agencies. by VIKAS BAJAJ. Criticized by states and cities for how it rates their bonds, Moody’s Investors Service said that it was considering rating municipal debt on the same scale it uses for corporate debt.
Man Questioned in Fund Manager's Disappearance - (www.cnbc.com) - U.S. Marshals are questioning a man in connection with the disappearance of convicted hedge fund millionaire Samuel Israel, according to a report from WNBC. Law enforcement sources told WNBC that investigators want to know if the man acted as a getaway driver on the Bear Mountain Bridge Monday, the day Israel vanished.
Argentine debt surge raises spectre of default - (www.ft.com) - Argentina's debt levels are now higher than they were when it crashed into the biggest sovereign debt default in history in 2001, and a worsening crisis of confidence in the government has brought the spectre of a new default closer, a report to be published next week says.


Other Stories:

Hedge Funds Gird for Withdrawals - (online.wsj.com) - Argentina's debt levels are now higher than they were when it crashed into the biggest sovereign debt default in history in 2001, and a worsening crisis of confidence in the government has brought the spectre of a new default closer, a report to be published next week says.
Pending Houses Sales are Misleading Tease - (Mike Morgan at realestateandhousing2.blogspot.com)
How HUD Mortgage Policy Fed The Crisis - (www.washingtonpost.com)
The Great Seduction - (www.nytimes.com)
Global Junk Bond Default Rate Doubled in Five Months - (www.researchrecap.com)
Thornburg Mortgage swings to $3.31 billion 1Q loss - (www.ap.com)
Citi to Close Fund in Blow to CEO - (online.wsj.com)

MBS Chaos Roils Thornburg Mortgage - (www.ml-implode.com) - "Anyone with a decent market pedigree probably saw this coming a mile away: ultra-jumbo lender Thornburg Mortgage Inc. (TMA: 0.7...
The Treasury Yield Curve & Gold - (www.ml-implode.com) - Let’s correct one of the biggest misconceptions out there. Fast rising energy costs worsen the USEconomic recession, forcing mor...
Mortgage Crisis Hurting GOOD credit risks! - (www.ml-implode.com) - I have prefect credit scores, never had a late payment of any kind and an excellent income. The problem is: the down payment! ...
Update: Franklin Bank, SSB Cuts Warehouse Lending Unit - (www.ml-implode.com) - According to a Bloomberg article today, Franklin has announced it will shut down its warehouse lending unit.
Update: Unique Mortgage Solutions Ch 11 BK Dismissed - (www.ml-implode.com)
May Retail Sales Driven By Inflation - What a Sham - (www.ml-implode.com)
Debt Slavery Emancipation - (jonnyob.blogspot.com)
Stagflation is back, but grimmer - (www.marketwatch.com)
Vanguard Update: Shareholder Reaction - (www.ml-implode.com)
MBA: HUD and Federal Reserve Must Work Together on RESPA Reform - (www.ml-implode.com)
FHA Faces $4.6 Billion in Losses - (www.nytimes.com)
When Will The Bubble Burst For Real Estate “Guru”? - (www.ml-implode.com)
Housing Turnaround? - (www.ml-implode.com)
Case for Abolishing the FHA and GSEs - (www.ml-implode.com)
The Anatomy of a Sick Bank - (www.ml-implode.com)
CRA, Pro-Housing Government Programs, And The Housing Crisis - (www.ml-implode.com)

How to forecast house price direction - (www.fidelitypacificrealestate.com)
Better off renting in Silicon Valley - (www.techcrunch.com)

Commodity Prices Show No Letup - (www.nytimes.com)
SEC Backs Changes In Rules on Ratings - (online.wsj.com)
Mining Replaces Financial Services as Biggest Driver of M&A - (www.bloomberg.com)
FBI Halts Some Financial Cases to Investigate Mortgage Fraud - (www.bloomberg.com)
A cold market for jumbo loans shows signs of a thaw - (www.latimes.com)
Funds Faulted in CSX Row - (online.wsj.com)
Dividend Cuts by Banks, Brokers, Insurers Exceed Five-Year Total, S&P Says - (www.bloomberg.com)
CME Group raises margin requirement - (www.chicagotribune.com)

Lehman Brothers removes finance, operating chiefs - (www.usatoday.com)
Lehman Ousts Callan as CFO; McDade Will Replace Gregory After Shares Slump - (www.bloomberg.com)
How to pass on rising costs poses dilemma - (www.ft.com)
Ad Spending Sees a Pullback - (online.wsj.com)
Devil Is in Lack of Details - (online.wsj.com)
Citigroup Shuts Down Old Lane, Co-Founded By Pandit - (www.bloomberg.com)
Homebuilders fined for polluting Ga. waterways - (www.ajc.com)
ResCap Issues $5.68 Billion of New Notes in Exchange to Ward off Default - (www.bloomberg.com)
Toyota to make plug-in hybrid by 2010 - (news.cnet.com)
American Airlines' fuel surcharge grows by $20 round trip - (www.chicagotribune.com)
Gannett Will Freeze Employee Pension Plan - (online.wsj.com)

Australian Employment Drops for First Time in 19 Months as Rates Take Hold - (www.bloomberg.com)
European Industrial Production Unexpectedly Increases - (www.bloomberg.com)
Inflation expectations rise sharply - (www.ft.com)
Yuan Advances to Highest Since Dollar Peg as China Seeks to Slow Inflation - (www.bloomberg.com)
Tokyo Office Vacancy Rate Rises to 2-Year High in May, Fourth Monthly Gain - (www.bloomberg.com)