Sunday October 26 Housing and Economic stories

TOP STORIES:

Bodies removed after Pontiac funeral home foreclosure - (www.freep.com) The bodies of five people and cremains for 22 others are on their way to the Oakland County Medical Examiner’s Office after the Pontiac funeral home sending them to their place of rest was foreclosed on this morning.

Greenspan denies blame for crisis, admits 'flaw' - (www.azcentral.com) Payback time for “bubbles” Greenspan. The formerly honorable Alan Greenspan is completely disgraced in front of the clueless politicians that used to kiss his ass. Badgered by lawmakers, former Federal Reserve Chairman Alan Greenspan denied the nation's economic crisis was his fault on Thursday but conceded the meltdown had revealed a flaw in a lifetime of economic thinking and left him in a "state of shocked disbelief."Greenspan, who stepped down in 2006, called the banking and housing chaos a "once-in-a-century credit tsunami" that led to a breakdown in how the free market system functions.

Mesa facing huge budget crisis - (www.azcentral.com) City Manager Chris Brady said Thursday that in about a month the City Council will be forced to decide what essential services Mesa can afford in an economy whose daily headlines speak of home foreclosures, drastic slowdowns in construction and a calamitous drop in sales-tax collections. "Every department is going through and making reductions now," Brady said. But when the council puts pencil to paper Nov. 20, Brady said, not every department will be treated equally.
Decisions will boil down to one question, Brady said. "What are the critical services we want to continue with?" "There are no sacred cows," Brady said. "Everything's on the table. . . . It's a new economy. We're having to re-evaluate everything."

Chamber of Commerce Makes Push for GOP - (online.wsj.com) Chamber using same tactics that Unions and Teachers use (dictating political influence). The U.S. Chamber of Commerce is pouring millions into an advertising push to prevent Democrats from winning the Senate. The campaign has provoked a backlash from Democratic leaders, but Chamber President Thomas Donohue isn't backing down. The nation's largest business lobby, the U.S. Chamber of Commerce, has raised ire among Democratic leaders for pouring millions of dollars into an advertising push to prevent the party from winning dominance in the Senate next year. The Chamber says it has raised enough money this year from corporations to spend about $35 million on the election, double its budget for House and Senate races in the 2006 election. The group is supporting pro-business candidates, almost exclusively Republicans in contested Senate races. Business executives fear that Democrats, bouyed by heavy spending from organized labor, could gain enough muscle in the Senate to spark policies favoring increased unionization, higher taxes, more restrictions on trade and more regulation on the financial-services and housing sectors. The Chamber's campaign has provoked a backlash from Senate Democrats. It is unusual for senior lawmakers to tell corporations how to conduct their political activity. But many have recently called Chamber leaders and business executives to urge them not to contribute to the campaign, saying the Chamber has come to resemble an arm of the Republican Party. "The whole caucus is upset at what the Chamber has done," New York Sen. Charles Schumer, who leads campaign operations for Senate Democrats, said in an interview this week. Last month, Mr. Schumer dialed up Chamber President and CEO Thomas Donohue to complain. A spokesman for Mr. Schumer confirmed the call.

Slow Economy Takes Toll on Shipping Firms - (online.wsj.com) Transportation companies are reporting sharply lower freight volumes, a sign that the pipelines of global commerce have begun to slow. Goods shipped by truck, train and ship have all fallen off in volume, and freight companies are now forecasting a slump as the credit crisis slows manufacturing and puts the brakes on consumer spending. Shipping companies are considered a barometer of economic health, which makes the current downturn particularly worrisome. The autumn months ordinarily bring a surge in preholiday shipping. On Thursday, package-delivery giant United Parcel Service Inc. said it had "precipitous declines" last month in volume of next-day-delivery products

2 vacant homes in Glendale catch fire - (www.azcentral.com) Sounds a bit fishy to me J Two vacant for-sale homes in Glendale caught fire within hours of each other Thursday. Just after 1 p.m., an empty home that was for sale in the area of Glendale and 76th Avenues erupted in flames. Glendale Fire Department Capitan Eric Eckert said the fire likely started in the attic and could have been cause by electrical problems. Several hours later, just after 8 p.m., Eckert and fire crews were called out to another fire in a vacant home for sale, less than a mile from the first one. Eckert said that he was not sure where this fire had started. He also said that the cause of the second fire was more suspicious than the first one.

Bloomberg strong-arming City Council members, comptroller says - (www.newsday.com) The New York Times reported Friday that organizations that receive both city funds and grants from Bloomberg's personal giving have been asked to call undecided City Council members to make the case for a third term. Loeser told the newspaper the mayor was careful to keep his philanthropic giving separate from his management of the city. Mayor Michael Bloomberg is strong-arming City Council members to support his plan to change the city's term-limits law so he can run again, the city comptroller said Sunday. Comptroller William Thompson said some council members had been threatened with losing perks such as committee chairmanships or funding for programs in their districts. He did not say who they were. "Undue pressure has been placed on them," Thompson said.

Criticism of Bloomberg Over Nonprofits’ Support - (www.nytimes.com) Several of New York City’s top political figures on Sunday denounced Mayor Michael R. Bloomberg’s administration in unusually harsh terms for asking nonprofit groups to support legislation that would allow Mr. Bloomberg to seek a third term in office. Many of the organizations contacted by the administration rely on Mr. Bloomberg, a billionaire, for tens of thousands of dollars a year in private donations and millions in city contracts, making it difficult to turn down the request, these leaders said. “It is an abuse of power, and it must stop,” said the city’s top financial watchdog, the New York City comptroller, William C. Thompson Jr., who may run for mayor next year. Representative Anthony D. Weiner, another likely candidate for mayor, said that “if you rely on the mayor or the administration to fund your organization, saying no when the mayor calls is not an option.”

Crooked Michael Bloomberg Coerces Council to Back Bloomberg Bid to Run Again – Bloomberg using AIPAC-like tactics to “influence” the race - (www.nytimes.com) The City Council voted, 29 to 22, to extend term limits, which will allow Mayor Michael R. Bloomberg to seek re-election next year. His plan, which will also permit members of the City Council and other elected officials to serve for three four-year terms, had set off more opposition than Mr. Bloomberg had anticipated. Critics charged that the bill reflected the hubris of a billionaire willing to disregard the wishes of voters, who backed the current two-term limit in 1993 and 1996.

Federal cash may be needed for GM-Chrysler deal - (ap.google.com) So government is now in the business of bailing out failed companies so they can buy other failed companies. All this is doing is propping up inflated wages for union and management instead of helping wages and inflation get back to market levels. Like much of middle America, Mike McCarthy doesn't think taxpayers should have to pay $700 billion to bail out Wall Street. The second-shift worker at a Chrysler engine plant also doesn't think the government should pay to save his own company, although he's a lot less sure about that one. McCarthy would like to see Chrysler's jobs and pensions preserved, but that directly conflicts with his opposition to a bailout. His dilemma is one that could soon be facing every member of the U.S. House and Senate. Talks toward General Motors Corp.'s possible acquisition of Chrysler LLC may involve going to Congress for cash, according to a person involved in the financing discussions. The person, who asked not to be identified because the talks are private, said he was unsure if the government has been approached yet. Cash-desperate GM is said to be interested in Chrysler first for its pile of money. Chrysler, whose sales have dropped 25 percent during the first nine months of the year, reportedly has about $11 billion available. It also has debt, but the amount isn't available because Chrysler a private company, 80.1 percent owned by the private equity firm Cerberus Capital Management LP.

Fed takes $2.7bn loss on Bear - (www.ft.com) Almost $3B of $30B lost already, after Treasury and government said this could benefit taxpayers. The Federal Reserve on Thursday said it had suffered a $2.7bn paper loss on the $29bn portfolio of toxic assets it took over from Bear Stearns in March as part of JPMorgan Chase’s government-brokered takeover of the stricken investment bank. News of the unrealised losses, revealed in a filing that also showed that American Insurance Group has already used up three-quarters of a $123bn Fed loan, could fuel the political and public backlash over the use of government funds to rescue financial institutions. However, the Fed is unlikely to recognise any losses on the Bear portfolio, which is managed by BlackRock, for several years. The monetary authorities have stressed they will not sell any assets for at least two years. Under the cut-price takeover that pulled Bear back from the brink of bankruptcy, JPMorgan has agreed to shoulder the first $1bn of losses on the portfolio.

Goldman Sachs to cut 10 per cent of workforce - (www.ft.com) Goldman Sachs, a hold-out against the trend towards big job cuts in the financial sector, is planning to cut 10 per cent of its workforce in response to the worsening economic environment in the US and abroad. The cutbacks will fall most heavily on areas such as fixed income and investment banking, which have been hardest hit during the contraction of the financial markets in the past year. The cuts will be spread geographically across Goldman offices, with New York and London taking the biggest hits.

West Is in Talks on Credit to Aid Poorer Nations - (www.nytimes.com) With the financial crisis engulfing developing countries, Western officials are weighing coordinated action to try to stabilize these economies. The list of countries under threat is growing by the day, and now includes such emerging-market stalwarts as Brazil, South Africa and Turkey. They have become collateral damage in a crisis that began in the American subprime housing market.



OTHER STORIES:

Destroying Companies For Profit - (www.ml-implode.com) - There's no telling how much vaporization of "wealth" we are now seeing is due to the way rampant practices like naked short sell...
Premium Alert: 5/3rd's Thirds and 3 Implodes - (www.ml-implode.com) - Read the latest full scoop - premium members (cheap, $10/mo subscription required. Cancel at any time.)
$40 Billion Foreclosure Assistance Not Even Close - (www.ml-implode.com) - The Treasury just released some news that they were pumping $40 billion into the foreclosure/loan modification/refi market. The ...
Fannie, Freddie Have `Explicit Guarantee,' FHFA Says - (www.ml-implode.com) - "The government seizure of Fannie Mae and Freddie Mac and the U.S. Treasury's pledge of $200 billion in funding represents expli...
Economic Weather Map of Europe - (www.ml-implode.com) - "Forecast: Scattered recession, with defaults gusting up to 40% ! "

Banks Hoard Money Meant to Boost Economy, Lender Says - (www.ml-implode.com)
US mulls new bailout amid rising mortgage defaults - (www.ml-implode.com)
Greenspan: I Was 'Partially' Wrong On Credit Crisis - (www.ml-implode.com)
Peterffy Says CME Group Credit Swap Plan Puts Billions at Risk - (www.ml-implode.com)
US foreclosure filings up 71 percent in 3Q - (www.ml-implode.com)
Another Bald Guy Gets Top Bailout Bailiwick - (www.ml-implode.com)
Bair: 3,500 Mortgages Modified at IndyMac Under FDIC Program - (www.ml-implode.com)
Mortgage Rates on the Downfall - (www.ml-implode.com)
Creative - not total - destruction: a rant - (www.ml-implode.com)
Maybe U.S. needs yard sale - (www.ml-implode.com)

Currencies Fall as Fears Spread and Stocks Slip - (www.nytimes.com)
Hedge funds face collateral pressure - (www.ft.com)
Bond Risk Surges by Record on U.K. Recession, Auto Sales Slump - (www.bloomberg.com)
Recession fears deepen global rout - (money.cnn.com)
Hedge Fund Withdrawals Stress Market; Citadel Reassures Clients - (www.bloomberg.com)
Gloomy Forecast On Hedge Funds - (www.washingtonpost.com)
Citadel Chief Denies Rumors of Trouble - (www.nytimes.com)
OPEC Orders Cut in Oil Production - (www.nytimes.com)
Another Bubble Bursts - (online.wsj.com)

Denmark Raises Main Rate Half a Point to 5.5% to Boost Krone - (www.bloomberg.com)
U.K. GDP Shrinks, First Recession Since 1991 Looms - (www.bloomberg.com)
Asia Backs Sarkozy Push for Financial-Market Revamp - (www.bloomberg.com)
Financial crisis: Hedge Fund turmoil is hitting millions of savers, experts say - (www.telegraph.co.uk)
South Koreans reliving nightmare of last financial crisis - (www.iht.com)
Tight Credit Curbs Growth in India - (www.nytimes.com)
Russia's Micex Halts Trading Until Next Week After Stocks Slump - (www.bloomberg.com)
States' Tax Receipts Fell Sharply in Latest Quarter - (online.wsj.com)
U.S. Home Resales Rose in September to One-Year High - (www.bloomberg.com)
Squeezed banks borrow record amount from Fed - (www.boston.com)

Greenspan Says He Was Wrong On Regulation - (www.washingtonpost.com)
Stockton, Calif., tries digging out - (www.usatoday.com)
Insurers Are Getting in Line for Piece of Federal Bailout - (www.nytimes.com)
Georgia's Alpha Bank & Trust Fails; Toll Rises to 16 - (www.bloomberg.com)
Chrysler Plans to Cut 25% of Salaried Jobs by Dec. 31 - (www.bloomberg.com)
U.S. Mulls Widening Bailout to Insurers - (online.wsj.com)
Wall Street layoffs could surpass 200,000 - (www.latimes.com)
AIG Has Used Much of Its $123 Billion Bailout Loan - (www.washingtonpost.com)
Companies hunkering down for long recession - (www.chicagotribune.com)
Restaurant industry is starving for customers - (www.latimes.com)

Ingersoll-Rand to Eliminate `Several Thousand' Jobs - (www.bloomberg.com)
Shipping Firms Gear Down as Slow Economy Takes Toll - (online.wsj.com)
Drug reactions at record pace - (www.boston.com)
They’re Shocked, Shocked, About the Mess - (www.nytimes.com)
Crisis caused by negligence and incredible stupidity - (www.ft.com)