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)

Tuesday May 6 Housing and Economic stories

Top Stories:

India considers ban on trading in food futures - (www.ft.com)
India is considering a blanket ban on trading in food futures, underlying growing concerns in Asia over the role of hedge funds and financial market traders in the surge in commodities prices - 12:10
BofA to Walk Away from Countrywide? - (www.ml-implode.com) - "Bank of America Corp is likely to renegotiate its deal to buy Countrywide Financial Corp down to the $0 to $2 level or completely walk away from it, said Friedman, Billings, Ramsey, [analyst Paul Miller] ..."
Oil moves above $120 mark - (www.ft.com)
Fed action brings cash for student loan market - (www.signonsandiego.com) – Fed now bailing out student loan industry prompted by Christopher “Free Money for Everyone” Dodd. In the move, the Fed is allowing investment firms and banks to use bonds backed by federally guaranteed student loans as collateral for the loans of safe Treasury securities that the central bank is making available.
“The Fed's decision...will help inject much-needed liquidity into the student loan market,” Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking Committee, said in a statement.
Three Wall Street Giants Planning More Layoffs - (www.cnbc.com) -Wall Street is being hit by another wave layoffs, with Morgan Stanley, Lehman Brothers and JPMorgan Chase all set to axe staff in the near future. Morgan Stanley is planning another round of layoffs in the coming days, finalizing a plan to slash another 5 percent from its securities-firm workforce, or 1,500 employees, CNBC has learned. And Lehman will announce another round of cuts in addition to those already begun as early as next week.
'Dated' Vegas mansions flooding market - (www.sltrib.com)
No Buyers, No Bidders - (blog.washingtonpost.com)
Orange County: It's not like what you see on TV - (www.ml-implode.com) - ``"Orange County is in recession," says Adibi. "It began with the mortgage industry, spilled over into construction, and now it'...
Second local high-end builder is bankrupt - (www.ml-implode.com) - "A local builder of multimillion-dollar mansions has filed for bankruptcy, the second casualty in the high-end homebuilder indus...
Countrywide Shares Worthless? - (www.ml-implode.com) - "At least two analysts said Bank of America Corp (BAC) will likely lower its purchase price for Countrywide Financial Corp (CFC)...
Fed Says `Historical Highs' of Banks Tighten Lending Standards - (www.bloomberg.com)
What Uncle Sam Gives in Rebates, OPEC Takes, Stalling Economy - (www.bloomberg.com)
AZ schools making deep cuts - (www.azcentral.com)
Las Vegas used to be a recession-proof oasis. Not anymore - (www.newsweek.com)
It's Newer Houses That Stand Empty - (www.nytimes.com)
Fed "Rogue Operation" Spurs Further Bailout Calls - (www.bloomberg.com)
Asia Getting Fed Up With Bernanke's Rate Cuts - (www.bloomberg.com)


Other Stories:

It will take till 2011 for housing to stop falling - (www.modbee.com)
Builders' pricing at 2002 levels - (lansner.freedomblogging.com)
How Low Will Real Estate Go? - (promo.realestate.yahoo.com)
Pimco star says Fed was too late - (lansner.freedomblogging.com)
Fast and Easy Fannie - (seekingalpha.com)
Ben's bind - (economist.com)
Greenspan Caused the Current Economic Crisis - (www.currencytrading.net)

Cleaning House - (www.tnr.com)
Best Loan Rate? Don't Bank On It - (online.wsj.com)

U.S. Stocks Retreat on Record Oil, M&A Concern; Yahoo Tumbles - (www.bloomberg.com)
Oil Rises to Record After Report Shows Service Industries Grew - (www.bloomberg.com)
Gold Rises in N.Y. as Dollar Falls Against Euro; Silver Gains - (www.bloomberg.com)
Housing crash creates more winners than losers - (www.fool.co.uk)
Hooray! House prices are falling again - (www.independent.co.uk)

U.S. Economy: ISM Services Index Unexpectedly Climbed – (www.bloomberg.com)
Economy May Face Prolonged Pain, History Suggests - (online.wsj.com)
Central bankers doubt they can act on food prices - (www.reuters.com)
Rule Clouds American Capital - (online.wsj.com)
Auto dealers face tough road for second-quarter sales - (www.dallasnews.com)
Much Blood-Letting to Come - (www.moneymorning.com)
Rebuttal To Housing Bottom Call - (Mish at globaleconomicanalysis.blogspot.com)
English house prices sliding 500 pounds a week - (www.guardian.co.uk)
Robert Shiller - (biz.yahoo.com)

Europe Price Surge Persuades Politicians to Back ECB - (www.bloomberg.com)
Trichet Warns of Global Inflation, Says Central Banks Be Vigilant - (www.nytimes.com)
Moody’s Cuts Lehman To ALT-A - (www.ml-implode.com) - "The ALT-A crisis may make the subprime crisis look like a bump in the road when all is said and done. Below is the Moody’s/LEH ...
Tea With Greenspan Plunges 65% - (www.ml-implode.com)
Countrywide Top Mortgage Originator in First Quarter - (www.ml-implode.com) - "Despite all the uncertainty continuing to swirl around the proposed Bank of America/Countrywide merger, the nation’s top lender still turned in the largest origination volume during the first quarter, according to an analysis from MortgageDaily.com."
Bank of America Should Skip Countrywide, Analyst Says - (www.ml-implode.com) - ``Bank of America should completely walk away from the Countrywide deal, as Countrywide's loan portfolio will prove a drag on earnings and could force Bank of America to raise additional capital,'' Miller wrote.
ResCap Says It May Not Be Able to Meet Debt Obligations in June - (www.ml-implode.com) - " ``There is a significant risk that we will not be able to meet our debt service obligations, be unable to meet certain financial covenants in our credit facilities, and be in a negative liquidity position in June 2008,'' ResCap said in a filing to the Securities and Exchange Commission today. "
Buffett Castigates Wall Street, Bankers on Blunders - (www.ml-implode.com) - "Billionaire Warren Buffett castigated investment bankers, home lenders and regulators for letting the financial system spin out of control and causing a run on Bear Stearns Cos. that almost brought down more of the biggest banks."
CountryFried Whodathunk - (www.ml-implode.com) - "In the whodathunk department Standard and Poor downgraded CountryFried Financial’s (CFC) bond debt because, drum roll please, Bankamerica (BAC) is suggesting that they will have nothing to do with it."
Economic Stimulus Not a Silver Bullet - (www.ml-implode.com)
Countrywide Toxic Mortgage investigations by the FBI, IRS and SEC heating up - (www.ml-implode.com)

Monday April 21 Housing and Economic stories

Top Stories:

Libor's Rise May Sock Many Borrowers - (online.wsj.com)
Traders Braced For Fresh Libor Reading - (www.fxstreet.com) - The British Bankers' Association said Wednesday it had brought forward a review of the Libor setting process and was investigating whether banks had misquoted Libor in recent months. The investigation comes in response to concerns that some banks may have been giving artificially low Libor quotes over recent months in an effort to mask their funding problems.
LIBOR Rate Apparently Rising In Response To BBA Investigation ... – (www.bumpzee.com)
Florida has a 5-year Condo Glut - (www.ml-implode.com) - ''A great article in Builder highlights Jack McCabe’s research report which calculates that the Florida condo market has a whopp...
Fed Officials May Be Nearing Rate Pause as Inflation Quickens - (www.ml-implode.com) - ''Federal Reserve policy makers, sensing both renewed inflation dangers and a possible economic boost from government rebate che...
Gas prices push closer to $3.50 a gallon, oil hits $117 - (ap.google.cm)
Speculator Nightmare as Losses Mount in England - (www.bloomberg.com)
Foreclosure future grim for Utahns - (www.deseretnews.com)
Auction-Bond Probes Widen as Cuomo Subpoenas 18 Firms - (www.ml-implode.com)
Citigroup Has Second Straight Loss After $12 Billion Writedown - (www.bloomberg.com)
BOE Prepares 50 Billion-Pound Mortgage Plan, BBC Says - (www.bloomberg.com)
Britain Said to Consider Shoring Up Debt Market - (www.nytimes.com)
Another record low for Bay Area home sales - (www.sfgate.com)
Wall St. braces for thousands of pink slips - (www.reuters.com)
1 Man, 1 Year: $3.7 Billion Payout - (www.washingtonpost.com)
San Francisco Area median price tumbles 16.1% - (www.sfgate.com)
San Francisco area prices plunge - (www.insidebayarea.com)
Buiter Says U.K. Banks Need $200 Billion Aid From BOE - (www.ml-implode.com) - ''Former Bank of England policy maker Willem Buiter said the central bank will need to offer loan swaps to financial institution...
Public opinion about the economy erodes rapidly - (www.ml-implode.com)


Other Stories:

The Economist's Cheery View of Credit Default Swaps - (www.ml-implode.com) - It's remarkable how attending an industry love-fest can distort one's perception. The Economist seems to have fallen hook, lin...
Wilmington Finance: "We're still here..." - (www.ml-implode.com) - In a conference call today announcing yet more layoffs, the speaker ended by saying "We are still here, no matter what they say ...
Bush Taps Preston as New Chief at HUD - (www.ml-implode.com)
How do you recognize a credit-card fueled city with a fake economy full of $30k millionaires? - (www.ml-implode.com)
Barratt Cut by UBS as Homebuilding Profit Nears Brink - (www.ml-implode.com)
Are South Florida foreclosure numbers misleading? - (www.ml-implode.com)

Beach communities not immune from crash - (lansner.freedomblogging.com)
Dallas foreclosures rise 40% - (www.dallasnews.com)
Condo Glut In Florida - (www.builderonline.com)
Paying for College Without the Home Equity Option - (www.nytimes.com)
Trapped in the Middle - (online.wsj.com)
Video from Mr. Mortgage: Fannie/Freddie 'Con' Jumbos a Bust - (www.ml-implode.com)
Fed hawks Lacker, Fisher warn on inflation - (www.reuters.com)
Fed's Kohn says banks' caution an economic threat - (www.signonsandiego.com)
Mortgage plan could cost taxpayers $6bn - (www.ft.com)
San Diego median price keeps falling - (www.signonsandiego.com)
California house prices plummet 26 percent - (www.sfgate.com)
Financial CEOs sees 88 pct chance of US recession - (www.forbes.com)
Latest Economic Tea Leaves Point to Recession - (www.nytimes.com)
Fannie and Freddie Are Risk to US Credit Rating - (nalert.blogspot.com)
Be wary of federal housing "help" - (www.wickedlocal.com)
Your House Is Worth Less? Good - (from 2007) - (www.time.com)
Bear Robbed By Insiders, Loss Paid By Taxpayers - (www.badcyclopedia.com)
Workers Get Fewer Hours, Deepening the Downturn - (www.nytimes.com)
Fuel prices fatten up airfares again - (www.usatoday.com)
Clearing the fog - (www.economist.com)
Why Russia should help America - (english.pravda.ru)
House Price Divided By Income, Over 20 Years - (PDF - comstockfunds.com)

U.S. housing bust not so special - (www.financialpost.com)
FBI sees surge in mortgage fraud investigations - (www.sfgate.com)
"Home buyers go wild over zero down" - (from 2004) - (eastbay.bizjournals.com)
Citigroup Records a Loss and Plans 9,000 Layoffs - (www.nytimes.com)
Harley-Davidson cuts shipments, jobs at quarterly profit skids - (www.latimes.com)
Pfizer quarterly profit falls on buyout charges, patent losses - (www.latimes.com)
Fannie Regulator May Settle With Raines, Person Says - (www.bloomberg.com)
At Merrill, Write-Downs and More Layoffs - (www.nytimes.com)
OFHEO Plans Settlement With Raines - (www.washingtonpost.com)
Earnings Reveal Economic Split - (online.wsj.com)

Iceland, a Tiny Dynamo, Loses Steam - (www.nytimes.com)
Booming Brazil could be world power soon - (www.ap.com)
Let Britain’s housing bubble burst - (www.ft.com)
U.K. Budget Deficit Widens to Record on Investment - (www.bloomberg.com)
Russia's Richest: Why a Billion Won't Cut It Now - (www.cnbc.com)


Looking Up, but From a Deep Hole - (www.nytimes.com)
Authorities lose patience with collapsing dollar - (www.telegraph.co.uk)
Behind the Food-Price Riots - (online.wsj.com)