Tuesday June 17 Housing and Economic stories

Top Stories:

Obama: Uncle Sam can fund retirement - (money.cnn.com) – Yes folks, this guy is running for president. To encourage low- and moderate-income people to stay in the plan, Obama would provide a federally-funded match for families earning less than $75,000 who set aside money in a retirement account at work or on their own. The government match - 50% of up to $1,000 in savings - would be a refundable tax credit directly deposited into an IRA.
Tent City, U.S.A. - (Mish at globaleconomicanalysis.blogspot.com) - This one is sad, and a must read. In the wake of the housing crash, "tent cities" have been springing up in several places in California. The story is not that new. However, it has not received much mainstream press. Therefore, many are unaware this is even happening.
Elite housing community sees fortunes fall amid foreclosure crisis - (www.pe.com) - Tony Muriel, 52, said when he and his wife, Carmen, put down $350,000 to buy a $1.3 million house two years ago, they planned to stay 10 years. By then they expected their two children would be off to college, and their home's value would increase to $5 million and become their retirement nest egg. The Muriels, like many of their neighbors, are upside down on their investment, owing more than $1 million on a house that most recently was appraised for $760,000. But with so much of their savings at stake, they said they are not moving. "We have to make the payments and continue," Tony Muriel said. The couple said they still enjoy their house with its super-size kitchen, koi pond and many other amenities, and their attractive neighborhood and good schools. Time should solve their real estate woes, Carmen Muriel said. "In four years, everything should be different," she predicted.
Massachusetts Foreclosure Filings Plummet Thanks to New Legislation - (www.ml-implode.com) - Foreclosure filings in the state of Massachusetts took a dive in May due to a recent piece of legislation that extends the period of time mortgage lenders must wait before initiating foreclosure proceedings from 30 to 90 days.
Mr Mortgage: ‘Friends of Angelo’ were Everywhere at Every Bank - (www.ml-implode.com) "Take it from this 20-year mortgage vet that what Mozillo gave his ‘insiders’ was nothing more than all mortgage and investment banks gave their top retail, wholesale or correspondent customers. This just goes to show you how lax everything was over the past 5-years."
Doesn’t ANYONE Read Loan Docs Anymore? - (www.ml-implode.com) - Being on Angelo Mozilo’s Christmas card list has apparently become a political liability. Senators Chris Dodd and Kent Conrad as well as James Johnson, former advisor to Barack Obama have all come under fire for the "Friends of Mozilo" financing on their homes. All deny knowing they received preferential treatment
At Countrywide, a Political Firestorm; Key Democrats Under Fire - (www.ml-implode.com) - While Dodd has issued a public denial to the claims he received preferential treatment, Conrad got nervous enough that he admitted receiving preferential treatment over this past weekend and said he will refinance his mortgages, giving $10,500 to charity as well in a clear attempt to make this issue go away. The Journal, in an opinion piece published Monday morning, suggested that key members of the Senate are headed into an “ostrich” defense over this issue, and wondered aloud: What did Countrywide CEO Angelo Mozilo receive — or think he would receive — in return for the friendly loans to politicians?
Local builders object to realistic appraisals - (www.news-press.com)



Other Stories:

Mortgage Cancer - Senators, CEO’s and Celebrities, No One is Immune - (www.ml-implode.com) - "Screw global warming! It looks like this mortgage cancer may swallow the world and will make today’s serious environmental issu...
FREDDIE MAC EXTENDS MORTGAGE RELIEF TO BORROWERS AFFECTED BY MIDWESTERN FLOODS - (www.ml-implode.com) - "Freddie Mac's full menu of relief policies for borrowers affected by disasters is being extended to families whose homes were d...
US foreclosure filings surge 48 percent in May - (biz.yahoo.com)
Planned Economies Do Not Work - (www.blogcritics.org)
Fed's Deliberate Inflation Threatens Asia - (www.marketwatch.com)
Oil Rally Topped Dot-Com Craze - (www.bloomberg.com)
FHA Makes Exception to Anti-Flipping Rule For Foreclosed Properties - (www.ml-implode.com)
Phoenix: The Population Boom That Wasn’t - (www.ml-implode.com)
NYT: We need a bailout now! - (www.ml-implode.com)
AIG's Connolly: "Crisis of Capitalism is Upon Us" - (www.ml-implode.com)
Continuing Decline In Median Connecticut Sales Prices - (www.courant.com)
House Prices, Wealth Effect and Cash-in-Hand Effect - (www.safehaven.com)
Many worried about foreclosure, but doing nothing - (www.journalrecord.com)
HUD Takes Second Stab At DPA's - Renewed Proposal Expected 2008-06-16 - (www.ml-implode.com)
Amazing that smart guys like Bernanke didn't see the Housing Fraud for what it truly was? - (www.ml-implode.com)
WaMu's Atrocious Mortgage Servicing - (www.ml-implode.com)
Mortgage Rates Fly Higher - (www.seekingalpha.com)
Short sales: A tough road - (www.latimes.com)
The Bubble - (www.washingtonpost.com)
Austin Housing Market: So This Is Better? - (www.ml-implode.com)

European protests against high fuel prices turn violent - (Mish at globaleconomicanalysis.blogspot.com)
Where Candidates Stand on Mortgage Bailout - (www.homeguide123.com)
Housing: It'll get worse - (promo.realestate.yahoo.com)
The Economy: Why Its Worse Than You Think - (www.newsweek.com)
Realtors cope with owners seeking unrealistic prices - (www.news-journalonline.com)
Nearly Half of Wall St. Bank Profits Are Gone - (www.nytimes.com)
Data on Housing Relief Questioned - (www.washingtonpost.com)

New York Fed June Manufacturing Index Falls to -8.7 - (www.bloomberg.com)
Southern California home prices, sales plunged in May - (www.sfgate.com)
Medicare could force couples to cut spending - (www.chron.com)
Housing, inflation getting worse, data to show - (www.marketwatch.com)
Home-builders' index matches record low in June - (www.marketwatch.com)
Fed divided on when to raise rates - (www.ft.com)
Price jolt: Electricity bills going up, up, up - (www.usatoday.com)
NAR overstated Jersey home sales - (www.cnbc.com)

The Street's Rush Into Far Frontiers Offers Big Game and Bigger Risks - (online.wsj.com)
Hedge funds badly burnt in inflation expectations bet - (www.telegraph.co.uk)
Hedge funds now worry about bank risk - (www.economist.com)
Corporate Bond Yields Hit Six-Year High - (www.cfo.com)
SEC preparing to lasso credit rating agencies - (www.financialweek.com)
Equity investors sitting on $10bn in losses - (www.ft.com)
New guidelines for US lenders - (www.ft.com)
Goldman deal could point way for SIVs - (www.ft.com)
Summer credit fears on Wall Street - (www.latimes.com)
Buyout firms limit debt as credit ebbs - (www.chicagotribune.com)
Pensions for execs test new heights - (www.financialweek.com)


Lehman Brothers posts $2.87 billion 2Q loss - (www.ap.com)
With Shares Battered, A.I.G. Ousts Leader - (www.nytimes.com)
Nearly Half of Wall St. Bank Profits Are Gone - (www.nytimes.com)
Midwest Floods Cripple Shippers - (online.wsj.com)
JPMorgan chief falling out of favor on Wall St. - (www.iht.com)
McClatchy to cut 10 percent of work force - (www.chron.com)
Goldman, Morgan Stanley Profits Conceal Reliance on Commodities - (www.bloomberg.com)
More late payments force firms to be tough - (www.chicagotribune.com)

European Inflation Accelerates to Highest in 16 Years - (www.bloomberg.com)
Malaysian PM warns of 'disaster' unless inflation tackled - (www.forbes.com)
No 10 admits EU treaty is finished - (www.timesonline.co.uk)
The Fed, the dollar and wider price concerns - (www.ft.com)