Wednesday June 25 Housing and Economic stories

Top Stories:

Marshals Make Millions Serving Foreclosure Papers - (www.ml-implode.com) Last year, John T. Fiorillo earned almost twice as much as University of Connecticut women’s basketball coach Geno Auriemma and more than 10 times the salary of Gov. M. Jodi Rell. The Bristol resident grossed more than $2 million, but not by coaching a team to the Final Four or running state government. Fiorillo is a self-employed state marshal who serves legal papers to people about to lose their homes through foreclosure. Fiorillo’s bounty can be attributed to his relationship with two law firms — Hunt Leibert Jacobson and Reiner, Reiner and Bendett — that have a virtual monopoly on the burgeoning foreclosure market.
Illinois to Sue Countrywide, CEO Mozilo - (www.cnbc.com) The lawsuit is the first known case of a state authority charging Countrywide, the largest U.S. mortgage lender, for actions related to the housing crisis. It also comes on the same day the company's shareholders are expected to vote on its sale to Bank of America. The acquisition is expected to close on July 1.
Wall Street to Fed: Keep on talking - (www.marketwatch.com) This article is absolutely hilarious and shows the idiots at the Fed and Wall Street are hoping the Fed can talk its way out of inflation without really doing anything drastic like raising rates. Markets hope strong inflation warning from Fed in Wednesday statement will keep dollar firm as growth slows, delaying or eliminating need for rate rise later in the year.
Central bankers talking on eggshells - (www.marketwatch.com)
Sensex plunges after rate hike - (www.marketwatch.com) – Indian Stock Market has fallen from 21,000 to under 14,000 since January. Drops below 14,000-point level, expected to fall further after central bank raises key rate, cash reserve requirement to fight inflation.
SEC Takes Chapter From Pontius Pilate on Rating Agency Regulation - (www.ml-implode.com) It no doubt sounds extreme to compare the SEC's proposed changes in regulation of rating agencies to Pontius Pilate's decision as judge in the trial of Jesus to distance himself from any responsibility. However, the SEC has similarly decided to avoid the thorny question of the rating agencies' culpability in the credit crisis (who knows who such an inquiry might implicate) and take as little action as possible
US stocks hit lowest level in three months - (www.ft.com) UPS adds to housing and consumer gloom -
GSEs Refuse To Save The Day - (www.ml-implode.com) - The slowness of Fannie Mae and Freddie Mac in injecting cash for new jumbo loans may have exacerbated the housing slump in mark...
Revealed: Hedge fund managers betting on plunge in bank shares - (www.ml-implode.com) - The regulator has a market abuse team that will be actively monitoring for companies who have not disclosed their short positions. Several announcements came in late. The FSA spokeswoman said: "We will probably just have a little word to find out what's going on, but nothing more than that." Because as we all learn in stock markets 101, betting that a share will fall is evil whereas betting that it will rise is good and virtuous (even if it is a garbage company). Thanks again FSA for the free short ideas and hedge fund research.
Mortgages Ltd., struggling lender, files for bankruptcy - (www.ml-implode.com)
Goldman Admits It Gave Very Bad Advice - (www.nytimes.com) When will people realize these are not smart guys and don’t deserve the $500K salaries they are earning?? Goldman Sachs & Co strategists urged stock investors on Monday to "underweight" U.S. financial and consumer shares, admitting it was wrong when it upgraded both sectors just seven weeks ago. The downgrades sparked selling in the two sectors as investors feared that weakening consumer demand and deterioration in the credit markets will weigh on profitability. "We boosted our consumer discretionary and financials weights in May on the belief the sectors would benefit from bank recapitalizations and fiscal stimulus," Goldman strategists led by David Kostin wrote. "Our thesis was clearly wrong in hindsight."
Houseowner Begs Bank To Foreclose - (Mish at globaleconomicblogspot.com) Steve Lee moved from Pompano Beach to Los Angeles but hasn't been able to sell his three-bedroom condo, which he put on the market in April 2006, despite cutting the price from $224,900 to $99,000. Part of the problem, he said, is the home was damaged after a water leak and sewer backup. The repairs are done, but he's still tied up in lawsuits with his condo association. He's begging the bank to foreclose so he can cut his losses. "I don't want a penny, just take it," Lee said. "It's absolutely destroyed me — mentally, physically and emotionally." There you have it, a $224,900 condo that is now worth less than zero. The bank refuses to foreclose. No one wants it at any price. Is that what it's going to take to get rid of condos? You have to pay someone to take it off your hands? Earlier this weekend I spoke with Mike Morgan about emails I have been receiving regarding people living in their homes for years without making a mortgage payment. In some instances a bank wants to foreclose but can't because the documents are so convoluted banks cannot prove ownership.
Assessments confound property owners with wildly inequitable taxes - (www.philly.com)
New Buyers Bitter in Virginia - (www.washingtonpost.com) Mike Klepac was supposed to move into his three-story townhouse the day before Thanksgiving 2006. But construction did not start until two months later. Before he could unpack a box three months after that, houses were going for nearly $100,000 less than what he paid. Even though the value of his home has dropped, his tax bill will go up an estimated 21 percent this year


Other Stories:

House slump harder to reverse than usual - (biz.yahoo.com)
Harvard Says Housing Crisis Worst In 50 Years - (www.allheadlinenews.com)
Housing slump deepest in 60 years - (www.marketwatch.com)
Other mortgage shoe is poised to drop - (www.fresnobee.com)
How low must housing go before families can afford to buy? - (www.millionairemommynextdoor)
Subprime meltdown took economy with it - (www.honoluluadvertiser.com)
Karma catches up with real estate industry - (www.msnbc.msn.com)
Lesson from real estate agent's arrest - (www.news-press.com)
Cities Desperate Measures To Keep Prices Too High - (www.nuwireinvestor.com)
Home Not-So-Sweet Home - (www.nytimes.com)
Ruling adds to trapped buyers' remorse - (www.palmbeachpost.com)
Bank in Jeopardy - (www.heraldtribune.com)
New Crisis Threatens Healthy Banks - (www.washingtonpost.com)
Canadian Realtors brace for "money laundering" backlash - (www.lfpress.ca)
Food Shortages, Rising Prices, Stagnant Wages: Welcome to 13th Century - (Charles Hugh Smith at www.oftwominds.com)

When $60 billion just isn’t enough - (www.ml-implode.com) - "Well, that didn’t take long. It’s not even been a month since the $60 billion bailout/refinancing effort was completed for Resi...
New Contest Offers to Pay Off the Mortgage - (www.ml-implode.com) - It’s beyond clear that the mortgage crisis has firmly taken center stage with the launch of “Hancock’s Helping Hand Mortgage P...
The humor of $2.99 gasoline - (www.ml-implode.com) - "This graphic from Salon (hat tip AD) answers the question of just how much fun you can have making fun of the new Chrysler prom...
Fannie, Freddie Fail to Relieve Housing by Shunning Jumbo Loans - (www.ml-implode.com)

Bottomless Pits and the Great Pretenders - (www.ml-implode.com)
Confusing Consumption With Investment - (www.ml-implode.com)
Case Shiller Index down 15.3% - (www.ml-implode.com)
Fewer Scottsdale Million Dollar Homes As Sellers Drop Asking Prices - (www.ml-implode.com)
It's Always Sunny Over The Harvard Joint Center For Housing Studies - (www.ml-implode.com)
Leaning Tower of Padre - (www.ml-implode.com)

U.S. Stocks Retreat on Economic Concern; UPS, Dow Chemical Drop - (www.bloomberg.com)
Gold Futures Rebound on Interest-Rate Outlook; Silver Declines - (www.bloomberg.com)
Dollar Drops Versus Euro as Confidence, Housing Prices Fall - (www.bloomberg.com)
Treasurys gain on gloomy U.S. data - (www.marketwatch.com)
U.S. Economy: Consumer Confidence Weakens, House Prices Slide - (www.bloomberg.com)
S&P/Case-Shiller Home Prices Fell 15.3% in April, Index Shows - (www.bloomberg.com)
Fed interest rate strategy poses risks - (www.ft.com)
US housing slump a prelude to recession - (www.chicagotribune.com)
Consumer Pain Goes Beyond The Pump - (www.washingtonpost.com)
Economic Challenges Draw Out Divisions at Fed - (www.washingtonpost.com)
Kaufman sees no sharp recovery - (www.nypost.com)
Workers asked to shoulder more of benefits burden - (www.financialweek.com)
$4 gas spurs interest in local attractions - (www.azcentral.com)
Movers feel housing's pinch - (www.ajc.com)
Utilities cut off more customers who are behind on their bills - (www.usatoday.com)
Oil Speculation Draws Scrutiny - (online.wsj.com)
U.S.-Backed Mortgage Program Fuels Risks - (online.wsj.com)
Fannie, Freddie Fail to Relieve Housing by Shunning Jumbo Loans - (www.bloomberg.com)
Banks and bond insurers ponder CDS wipe-out costs - (www.ft.com)
Money Managers Turn Bearish - (online.wsj.com)
Recruiters say financial industry cuts will continue - (www.chron.com)
Investors Have Lost Their Innocence - (www.thestreet.com)
Mortgage crisis spooking high-end developments - (www.chicagotribune.com)

Dow Chemical to Raise Prices 25% as Energy Costs Gain - (www.bloomberg.com)
GMAC's $60 Billion Deal Loses Confidence as Mortgages Burn Cash - (www.bloomberg.com)
Financial Firms May Make Deeper Cuts, Eliminate 175,000 Jobs - (www.bloomberg.com)
Banks' pipelines to fresh capital are narrowing - (www.financialweek.com)
GM to boost prices for 2009 models 3.5% - (www.latimes.com)
United to lay off nearly 1,000 pilots this summer - (www.chicagotribune.com)
Deal Pushes Up Price of Iron Ore - (online.wsj.com)

Inflation psychology troubles central banks - (www.iht.com)
British mortgage approvals saw new low in May - (www.marketwatch.com)
German, Italian Consumer Confidence Fade on Rising Prices - (www.bloomberg.com)
Asian Economies Facing `Bleak Time,' Aberdeen Says - (www.bloomberg.com)
The Return of Inflation? - (www.newsweek.com)