Monday, November 26, 2012

Tuesday November 27 Housing and Economic stories


TOP STORIES:

Secret Documents Show Weak Oversight of Key Foreclosure Program - (www.propublica.org) The Obama administration launched its main program to prevent foreclosures in the spring of 2009 with $50 billion and abundant promises. What the Home Affordable Modification Program, or HAMP, lacked — and wouldn’t have for years — was effective oversight of the big banks that were crucial to the program’s success. Documents obtained by ProPublica shed new light on this failing in 2009 and 2010, when the foreclosure crisis was at its peak and six million American homeowners were in danger of losing their homes. HAMP required mortgage servicers to offer loan modifications to eligible homeowners so that their monthly payments would be lower. The servicers — the largest of which were owned by the banks that had fueled the crisis in the first place — were in charge of reviewing homeowner applications, but the government set the rules and was supposed to supervise their work.

Credit Agricole Posts $3.6 Billion Loss After Greek Sale - (www.bloomberg.com) Credit Agricole SA (ACA)France’s third- largest bank, posted a quarterly loss that exceeded analysts’ estimates on costs tied to the sale of its Greek unit. The shares fell the most in a year after the bank, based outside of Paris, reported a third-quarter net loss of 2.85 billion euros ($3.62 billion). That’s wider than the 1.88 billion-euro averageestimate of seven analysts surveyed by Bloomberg. Credit Agricole, led by Chief Executive Officer Jean-Paul Chifflet, agreed to sell its Greek unit, Emporiki, last month at a loss of 1.96 billion euros as the lender tries to insulate itself from the potential costs of the country’s exit from the single European currency.

Exclusive: Worried Germany seeks study on French economy - sources - (www.reuters.com) German Finance Minister Wolfgang Schaeuble has asked a panel of advisers to look into reform proposals for France, concerned that weakness in the euro zone's second largest economy could come back to haunt Germany and the broader currency bloc. Two officials, speaking on condition of anonymity, told Reuters this week that Schaeuble asked the council of economic advisers to the German government, known as the "wise men", to consider drafting a report on what France should do. Schaeuble's request denotes growing concern in Berlin and among private economists over the health of the French economy, which is set to miss a European Union goal for reducing its public deficit next year.

Sweden Industrial Output Plunges as European Demand Falters - (www.bloomberg.com) Swedish industrial production fell more than estimated in September as the export-dependent country suffers from declining sales abroad. Industrial production fell an annual 5 percent, after rising a revised 2.7 percent the previous month, Stockholm-based Statistics Sweden said today. Production was estimated to fall 0.1 percent, according to the median forecast in a Bloomberg survey of six economists. Output fell a monthly 4.1 percent, compared with a predicted drop of 1.5 percent. Sweden’s central bank last month signaled it may cut rates for a fourth time since December last year as it trimmed its 2012 growth forecast to 0.9 percent from 1.5 percent. Exporters including Ericsson AB (ERICB), the world’s largest maker of wireless equipment, and truck maker Volvo AB (VOLVB) are cutting jobs as demand slows from Europe.

Muni Yields Plunge to 1967 Low as Obama’s Tax Plans Stoke Demand - (www.bloomberg.com) U.S. municipal-bond yields dropped to the lowest in more than four decades as PresidentBarack Obama’s re-election fueled speculation that income-tax rates will increase, boosting the appeal of tax-free debt. The interest rate on 20-year general-obligation bonds fell 0.12 percentage point to 3.55 percentin the week ended Nov. 8, according to a Bond Buyer index. That beats this year’s previous low of 3.6 percent and is the lowest since April 1967, when Lyndon B. Johnson was president. And Down Goes Groupon - (www.businessinsider.com)  After another bad earnings report, Groupon is getting crushed. It might be time to find a new CEO, or just figure out something else, because the current structure just isn't working.





1 comment:

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