Monday November 7 20916 Housing and Economic stories

TOP STORIES:

Done in by Overcapacity, Stagnant World Trade, and China, Korean Shipbuilders Collapse on Top of Taxpayers - (www.wolfstreet.com) The ravaged shipbuilding industry in South Korea, deemed too big to fail, is getting its largest taxpayer bailout yet, totaling $9.6 billion, on top of the bailout funds already handed out last year, and on top of another $9.6 billion this year to bail out state-owned banks that were getting slammed by defaulting loans extended to the shipping industry. Their problem: according to trade ministry, cited by the Wall Street Journal, orders for new ships to be built in South Korea have collapsed by 87% over the past nine months from the already terrible 9-month period last year, to almost nothing.

 Deutsche Bank Accuses ECB Of "Creating Asset Bubbles, Expropriating Savers And Backdoor Socialization" - (www.zerohedge.com)  "And so the ECB is stuck, as it has been since 2012, between an unfavourable equilibrium of low growth, high unemployment and zero reform momentum on the one hand, and growing risks to core country balance sheets on the other. It remains to be seen how it will escape from this dilemma of its own making."

Banks No Longer Make the Bulk of U.S. Mortgages - (www.wsj.com) Banks no longer reign over the mortgage market. They accounted for less than half of the mortgage dollars extended to borrowers during the third quarter—the first quarter banks, credit unions and other depository institutions have fallen below that threshold in more than 30 years, according to Inside Mortgage Finance. Taking their place are nonbank lenders more willing to make riskier loans banks now shun. The shift reflects banks’ aversion to risk, especially in the mortgage market, in the wake of the housing meltdown and financial crisis. Banks also remain fearful of legal and regulatory threats that have cost them tens of billions of dollars in mortgage-related fines and settlements in recent years.

Deutsche Bank Thinks Draghi’s Gone Over to the ‘Dark Side’ - (www.bloomberg.com) Grim mutterings about European Central Bank policy can probably be heard echoing around the skyscrapers of Frankfurt's financial district on any given day: Low interest rates, tough supervision, no bonds left out there to buy, etcetera. David Folkerts-Landau, chief economist of Deutsche Bank AG has taken those concerns to a whole new level, and has just published an excoriating attack on ECB policy. The research note is entitled “The Dark Sides of QE.” Here’s a taste: “While European central bankers commend themselves for the scale and originality of monetary policy since 2012, this self-praise appears increasingly unwarranted,” he writes, going on to conclude that the “ECB is stuck ... between an unfavorable equilibrium of low growth, high unemployment and zero reform momentum on the one hand and growing risks to core country balance sheets on the other.”

Don't Be Fooled: Hillarygate Probe Is Now a Formal Federal Criminal Investigation - (www.americanthinker.com) This weekend's development potentially escalates the threat to Mrs. Clinton. While several other procedural steps and processes are necessary, it is a federal grand jury, not the FBI,  which issues indictments. The FBI -- using the the grand jury to obtain testimony, conduct searches and compel the production of documents and things - investigates crimes. The U.S. Attorneys, acting though the grand jury, charge and prosecute those persons whom the grand jury finds probable cause to believe have committed those crimes.''

OTHER STORIES:

Asian Stocks Slide With Won as Election Angst Boosts Yen, Gold - (www.bloomberg.com)
U.S. Stocks Fall to July Low as Election Anxiety Rises Amid Fed - (www.bloomberg.com)
Auto Sales Slow as U.S. Eases From Peak to ‘Pretty Good’ Market - (www.bloomberg.com)
European Bonds Fall as Central-Bank Hiatus Adds to Global Rout - (www.bloomberg.com)

China Is Losing Its Emerging Markets Growth Engine - (www.bloomberg.com)
Inflation Jitters Spark Retreat From Bond ETFs - (www.wsj.com)
Financial markets jolted as US election polls tighten - (www.ft.com)