Sunday November 20 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

You Won't Believe How MF Global Screwed Their Clients In Their Final Days Before Going Bankrupt - (www.businessinsider.com) Some incredibly galling behavior on the part of MF Global as exposed by Reuters' Matthew Goldstein: It appears that 10 days ago, with speculation swirling that the Jon Corzine-led firm would soon file for bankruptcy, a good number of customers started to put in requests to pull their money from the New York-based outfit. But instead of simply wiring that money back to their customers, it seems MF Global tried to buy some time for itself by sending that money back via snail mail in the form of an old-fashioned check. This proved to be hugely significant, as the checks have, in many cases, ultimately bounced, now that the company is bankrupt.

Thousands Rally in Rome, Pressing Italy’s Berlusconi to Resign Amid Crisis - (www.bloomberg.com) Tens of thousands of Italians gathered in Rome to call on Prime Minister Silvio Berlusconi to resign, as defections eroded his parliamentary majority at a time when the country’s borrowing costs are at a euro-era high. Hundreds of buses and 14 special trains brought thousands of supporters of the opposition Democratic Party to the rally in front of the Basilica of St. John Lateran to hear calls for the premier to go. Demonstrators shouted “Shame”” and “Get Out” in the square that’s home to the first church built in Rome. The premier, who generally spends his weekends at his home in Milan, remained in Rome in consultation with his top advisers after several lawmakers said they planned to abandon his People of Liberty party, threatening to leave him without a majority in Parliament before a key vote. Calls will increase for Berlusconi to resign if he loses the ballot to rubberstamp the 2010 budget report, likely to be held on Nov. 8.

ECB debates ending Italy bond buys if reforms don't come - (www.reuters.com) The European Central Bank often discusses the possibility ending the purchase of Italian government bonds if it concludes Italy is not adopting promised reforms, ECB Governing Council Member Yves Mersch said. "If we observe that our interventions are undermined by a lack of efforts by national governments then we have to pose ourselves the problem of the incentive effect," Mersch said according to extracts of an interview with Italian daily La Stampa to be published on Sunday.

Sad Proof of Europe’s Fallout - (www.nytimes.com) WHO are you going to believe — me, or your own lying eyes? That old line from the Marx Brothers came to mind last week as MF Global, the brokerage firm run by Jon S. Corzine, was felled by over-the-top leverage and bad derivative bets on debt-weakened European countries. Suddenly, all of those claims that American financial institutions have little to no exposure to Europe rang hollow. You can understand why Wall Street wants to play down the threats from Europe. Its profits depend on the market’s confidence in the products it sells — and on the belief that the firms that sell those products will be around tomorrow. But MF Global provides two lessons. The first is that our financial institutions are not impervious to Euro-shocks. The second is that when those problems reach our shores, they usually ride in on a wave of derivatives.

Second Iraq War Veteran Hurt In Occupy Oakland Protests - (www.businessinsider.com) The second Iraq war veteran to be injured in the Oakland protests, Kayvan Sabeghi, was hurt Thursday morning and is in stable condition in a local hospital. The Associated Press reports that Sabeghi, 32, was walking home from the march Thursday when he was beaten by police and charged with resisting arrest (via Huffington Post). Sabeghi's partner in a brewery, Esther Goodstal, told the AP, "I saw he had bruises all over his body, and that's not right. No one should treat another human being like this." The Oakland police spokesman did not return a call seeking comment.

OTHER STORIES:

Papandreou’s Unity Government Bid Hits Resistance as Crisis Talks Begin - (www.bloomberg.com)

Greece needs coalition to protect euro membership - (www.reuters.com)

Greece’s Papandreou vows to form unity coalition as frustration festers in Athens - (www.washingtonpost.com)

Greek opposition refuses to join coalition - (www.ft.com)

Uncertainty as Greek Leader Tries to Form Unity Coalition - (www.nytimes.com)

$4 Trillion Debt Deal Possible With Tax-Spending Measures, Lawmakers Say - (www.bloomberg.com)

MF Global Said to Be Subject of Probe by Federal Bureau of Investigation - (www.bloomberg.com)

Berkshire Earnings Decline 24% on Derivatives - (www.bloomberg.com)