Tuesday July 1 Housing and Economic stories

Top Stories: Do these look like healthy bank/lender stock charts? (click on chart for larger view)

Ron Paul on Federal Reserve and Inflation - (www.youtube.com) New Ron Paul video from 6/25/08 on Fed Reserve meeting results.

Is IndyMac on the verge of Bankruptcy? Stock falls below $1 after being hit with a run on the bank on Saturday
· After some depositors pull funds, IndyMac responds to latest rumors about its health; says it's working with regulators - (latimesblogs.latimes.com) Pasadena-based mortgage lender IndyMac Bancorp, battling fresh rumors that it is near collapse, conceded today that its financial position "has deteriorated since last quarter," and said it was working on a plan with its regulators to improve "the safety and soundness" of the bank.
· Late Day Update: Indymac Closes Commercial Unit, Depositors Withdrawing Funds - (www.ml-implode.com) - At 5:45 pm (EST), the following email was sent to customers of Indymac's commercial lending unit, Indymac Commercial Lending Corp.:
"ICLC, due to the current market and capital constraints has ceased lending operations as of 7/1/08. A formal announcement from ICLC will be coming out tomorrow regarding details and loans in process." Referring to today's press release on The IMB Report, Indymac's company web site, an LA Times report refers to "a weekend that saw depositors line up at some of its San Gabriel Valley branches to pull their money, as they reacted to news reports questioning the company's survival." Indymac's article responds with "while branch traffic is somewhat elevated this morning, it is substantially lower than on Saturday, and we are hopeful that this issue appropriately abates soon..."
· Schumer: concerned over IndyMac stability - (www.ap.com)
· [$$] Schumer Asks Regulators For Greater IndyMac Scrutinyat - (us.rd.yahoo.com/finance/external/wsj)
· CRL: Indymac Dug Its Own Grave - (www.thetruthaboutmortgage.com) - The Center for Responsible Lending has impeccable timing, considering the fact that Indymac is trading at its lowest point ever amid mounting solvency concerns.The group released a 22-page report today outlining the Pasadena, CA-based mortgage lender’s failings, accusing the company of “unsound and abusive lending” during the recent boom. The report includes interviews with former employees, which among other things, claim Indymac padded borrower income, used bogus appraisals, worked with misleading mortgage brokers, and treated minorities and the elderly unfairly.
· IndyMac Update: Shares Down On More Bad News - (www.ml-implode.com)


Will Lehman Brothers suffer the same fate as Bear Stearns? It will likely (within next month) be bailed out by the Fed or Barclays
· Lehman falls on talk of possible sale to Barclays - (www.ap.com) - Lehman Brothers Holdings Inc. shares fell sharply (over $2.4/share) Monday amid speculation that the nation's fourth-largest investment bank might be acquired by Britain's Barclays PLC at a discount price.
· Lehman up after Morgan Stanley's overweight rating - (www.reuters.com) – Yet Morgan Stanley changes rating to “overweight”. We should know in less than a month if MS was unethically trying to protect their interest or if Lehman gets acquired at $31/share.
· [$$] Lehman Hits Lowest Level Since 2000 Amid Buzz - (us.rd.yahoo.com/finance/external/wsj)









And how about Wachovia. Prediction is Wachovia will be acquired (or liquidated) in the next 2 months:
· Wachovia Drops On News of Possible $5 Billion Buyback - (www.bloomberg.com) Wachovia Corp., the fourth-largest U.S. bank, fell the most in two months after the New York Post said the company may have to buy back Prudential Financial Inc.'s stake in their joint retail brokerage venture.
· Wachovia halts mortgages with negative amortization featuresat MarketWatch(Mon 5:28pm) – (www.marketwatch.com)
· Wachovia eliminates pick-a-pay loansat bizjournals.com(Mon 5:25pm) – (www.bizjournals.com)
· ALERT! Wachovia Cries ‘UNCLE’ on the Pay Option ARM - (www.ml-implode.com)

Court Ruling Could Shock Entire U.S. Mortgage Industry - (www.ml-implode.com) - A lawsuit filed by a Wisconsin couple against their mortgage lender could have major implications for banks should a U.S. appeals court agree that borrowers can cancel their loans en masse when their lenders violate a federal lending disclosure law.
BIS slams central banks, warns of worse crunch to come - (www.telegraph.co.uk) A year ago, the Bank for International Settlements startled the financial world by warning that we might soon face challenges last seen during the onset of the Great Depression. This has proved frighteningly accurate. The venerable body, the ultimate bank of central bankers, said years of loose monetary policy had fuelled a dangerous credit bubble that would entail "much higher costs than is commonly supposed". In a pointed attack on the US Federal Reserve, it said central banks would not find it easy to "clean up" once property bubbles have burst. If only we had all listened to the BIS a long time ago. Ensconced in its Swiss lair, it has fired off anathemas for years, struggling to uphold orthodoxy against the follies of modern central banking. Bill White, the departing chief economist, has now penned his swansong, the BIS's 78th Annual Report, released today. It is a disconcerting read for those who want to hope the global crisis is over. "The current market turmoil is without precedent in the postwar period. With a significant risk of recession in the US, compounded by sharply rising inflation in many countries, fears are building that the global economy might be at some kind of tipping point," it said. "These fears are not groundless. The magnitude of the problems yet to be faced could be much greater than many now perceive," it said. "It is not impossible that the unwinding of the credit bubble could, after a temporary period of higher inflation, culminate in a deflation that might be hard to manage, all the more so given the high debt levels."
Next Victim of Real Estate Bubble: Government - (www.businessweek.com) - State and local governments were flush with tax revenue during the five-year housing boom. They pulled from bulging pools of property, income, and sales tax to expand education, law enforcement, health care, and infrastructure programs without needing to burden residents and corporations with tax hikes. Those days are over. Home prices are falling, and foreclosures, gas prices, unemployment, and inflation are on the rise. At least 29 states, plus the District of Columbia, reported budget shortfalls that total about $48 billion as they finalized their 2009 fiscal budgets, which typically begin July 1, according to the Center on Budget & Policy Priorities.
Credit crisis fallout to limit houseowner spending - (www.reuters.com) "(U.S.) household spending now seems likely to weaken in response to high debt and service burdens, falling employment and the general tightening of credit conditions," it said.
A growing trend of negative equity -- where falling house prices leave homeowners with a mortgage bigger than their property's value -- is also expected to corset the borrowing ability of U.S. households. In some parts of the United States, houses have halved in value over the last two years as the property bubble has popped and mortgage defaults surge while builders flood already saturated markets with new properties. "As housing prices fall and credit conditions tighten, (more) such loans are likely to default because borrowers have few alternative financial resources," BIS said.
The Greenspan Gamble - (www.rgemonitor.com) it appears to me that the "Super Fed" could actually happen. Many of the other changes require consolidation of regulatory agencies, and bureaucracies seldom go gently into that good night. They and their constituents will fight for survival and probably win. But the Fed expansion is likely to be seen as the solution the problem of risk that the housing bust has made apparent. But wait. Isn't this the same Fed whose 1 percent fed funds rate helped inflate the great Housing and Mortgage Bubble that is now popping? Didn't this lead to massive losses, illiquidity, and panic? Wasn't the bubble exactly the sort of systemic risk that the new, more powerful Fed is expected to effectively manage?



Other Stories:

Deflationary Hurricanes to Hit U.S. and U.K. - (Mish at globaleconomicanalysis.blogspot.com) British households are now more indebted than those of any other major country in recorded history, it has emerged. Families in the UK now owe a record 173pc of their incomes in debts, official figures have shown. The ratio of debt to income is higher than any other country in the Group of Seven leading industrialised economies, and is sharply higher than the 129pc of incomes it was five years ago.
OPEC pres sees oil at $170 this year, blames Fed - (www.marketwatch.com)
28 in Michigan Charged With Mortgage Fraud - (www.ml-implode.com)
The end of the superbubble - (articles.moneycentral.msn.com)
FL Joins List Of States Lining Up With Suits Against Countrywide - (www.ml-implode.com) - Florida sued mortgage lender Countrywide Financial Corp for predatory lending practices on Monday, alleging the company at the c...
Central Bank Schizophrenia - (www.ml-implode.com) - "What is Ben Bernanke to do? Since his job is simultaneously to avoid recession while protecting against inflation, and right no...
Is Any Company Safe from Subprime Related Lawsuits? - (www.ml-implode.com)
California Under Schwarzenegger Underperforms Davis Debt Burden - (www.bloomberg.com) As the most populous U.S. state, with a gross domestic product that's No. 8 in the world, California is so strapped for cash that it must consider a short-term, $10 billion loan to cover its bills. The widening deficit means the financing may be about 0.85 percentage point more expensive than five years ago, when Davis lost his job over a budget gap twice as large as the $17 billion deficit the state now faces. That's an added $8.5 million on every $1 billion borrowed.

Consumers fail to save despite the gloom - (www.ft.com)
Subprime, Alt-A Bonds to Extend Drop as Banks Retreat - (www.bloomberg.com)
Homeowners Fall Further Behind on Mortgage Payments, Group Says - (www.bloomberg.com)
Engineering the Housing Bubble Through Monthly Payments - (mrmortgage.ml-implode.com)
Lenders create a bankruptcy monster - (articles.moneycentral.msn.com)
Crash not be an altogether bad thing - (www.atimes.com)
Lehman Selling Archstone - (patrick.net)
Second-Largest New England City Seeks Foreclosure Moratorium - (www.ml-implode.com)
Is Oil Having an Impact on Housing? Taking a Look at Los Angeles County - (www.ml-implode.com)
Mr Mortgage: Engineering the Housing Bubble Through Monthly Payments - (www.ml-implode.com)
Who owns my mortgage? - (msnbc.msn.com)
You ain't seen nothing yet - (www.informationclearinghouse.info)
Gloom and Doom? Nah; Just for the U.S. - (online.barrons.com)
One bullish American economist amid growling bears - (www.telegraph.co.uk)
Is Oil Impacting Housing? Look at Los Angeles County - (www.mybudget360.com)
Will the USA Invade Canada For Its Oil? - (www.sandersresearch.com)
Economist describes why inflation hits harder now - (www.marketwatch.com)

Hoarding Nations Drive Food Costs Ever Higher - (www.nytimes.com)
One Rebate Isn’t Enough - (www.nytimes.com) , Shiller
World needs tough monetary policy to tackle inflation - (www.reuters.com)
Northeast braces for home heating oil increases - (www.usatoday.com)

Banks seek market-based pricing scheme - (www.ft.com)
MBIA Has Sufficient Assets to Meet Collateral Call - (www.bloomberg.com)
Legg Mason Support for Money Funds to Cut Earnings by 64 Cents - (www.bloomberg.com)
Businesses Scramble To Offset Rising Cost Of Transportation - (online.wsj.com)
Small US banks feel the pinch - (www.ft.com)

European Prices Rise More Than Forecast as Oil Surges - (www.bloomberg.com)
China Stocks Fall; Benchmark Index Completes Worst Month Ever - (www.bloomberg.com)
Eurozone inflation jumps to 4% - (www.ft.com)

Monday May 26 Housing and Economic stories

Top Stories:

A Congressional Speculator? - (calculatedrisk.blogspot.com) - This is an update to post below on Rep. Linda Richardson's foreclosure woes. Gene Maddaus of the Daily Breeze kindly forwarded today's additions to the saga. There are not two, but three homes owned by Richardson in foreclosure. And yes, she appears to have cashed out her primary residence back in 2006 to fund her campaign for State Assembly. So it looks like a pattern."
City of Vallejo, California files for bankruptcy - (www.reuters.com) - The city of Vallejo, California, filed for bankruptcy on Friday, a move signaled by its city council earlier this month as it struggles to avoid running out of money amid steep city personnel costs and sliding revenues from a housing slump. Vallejo, with more than 100,000 residents, is the first sizable city in California to file for bankruptcy.
Report says Moody's, others shifted analysts at banks' request - (www.financialweek.com) – Yes, the same companies that rated mortgage securities as AAA and rated Enron highly before they went into bankruptcy are showing their conflicts of interest.
Limits Weighed for Commodities Investors - (www.nytimes.com) Patients are now running the asylum. Instead of addressing root case, moron Joseph Lieberman, chairman of a Senate oversight committee, said Tuesday that he was considering legislation limiting large institutional investors in commodities markets. The legislation would be aimed at speculators and other investors who use commodities like oil as a way to hedge against swings in other investment instruments, like stocks and the American dollar.
Toughest Summer Job Is Finding One - (www.nytimes.com) - As the forces of economic downturn ripple widely across the United States, the job market of 2008 is shaping up as the weakest in more than half a century for teenagers looking for summer work, according to labor economists, government data and companies that hire young people.
Home price index posts largest drop in history - (www.ap.com) - A home-price index considered to be the most comprehensive reading of the U.S. market posted the sharpest decline (3.1% in 1Q2008) in its 17-year history, & analysts say housing has yet to bottom out.
Mesa Air may file for bankruptcy - (www.arizonarepublic.com)
Fingerprint Registry in Housing Bill!!! – (www.openmarket.org) – You wonder why Congress’ approval ratings are lower than Bush, because they are standing around giving away all our rights. Earlier this week, a measure creating a federal fingerprint registry totally unrelated to national security passed a U.S. Senate committee almost without notice. The legislation would require thousands of individuals working even tangentially in the mortgage and real estate industries — and not suspected of anything — to send their prints to the feds. The database and fingerprint mandates were tucked into housing and foreclosure assistance bills that on Tuesday passed the Senate Banking Committee by a vote of 19-2
New Vanguard CEO declares Media Blackout - (www.ml-implode.com) - New CEO Joe Nocito Jr. warns his "employees" of "DISCIPLINARY ACTION" if they talk to the media. "There is to be NO communication with ANY members of the media."
Woman loses job, burns down house for money - (blogs.tampabay.com)
Citigroup's CDO Shows Enron Accounting - (www.bloomberg.com)
Florida Pension Fund Is Suing AIG - (www.nytimes.com)
Moody's Plunges for Second Day After Cover-Up Probe - (www.bloomberg.com)



Other Stories:

Housing's False Bottom - (Charles Hugh Smith at www.oftwominds.com)
Loan failures rise for 37th straight month, extending record - (www.signonsandiego.com)
FDIC's Bair: Foreclosure Aid Is 'Train Wreck' - (blogs.wsj.com)
How Is the Klan Like a Group of Real-Estate Agents? - (www.freakonomicsbook.com)

Canadian Housing Market Also Subject To Housing “Physics” And Is Going Down - (www.ml-implode.com) - "Alas, what goes up, must come down- even in Canada. After months of the MSM reporting that the Canadian housing market would n...
Bribery, Kickbacks, Indictments, Ratergate - (www.ml-implode.com) - "Fraud, greed, and market tops go hand in hand like clockwork. We saw that in housing, we are seeing it other places as well suc...
David Einhorn’s ‘Must-Read’ Speech Exposing Lehman’s Lies - (www.ml-implode.com) - ``After an in-depth and informative intro, [Einhorn] dives right into Lehman with research that is quite damning.'' Here is a n...
Historical Housing Graphs: Months of Supply, Sales and Inventory - (www.ml-implode.com)
Fraud Probe At Moody's - (www.ml-implode.com)
Merrill Suspends Trader, Finds Overvalued Derivatives - (www.ml-implode.com)
Ranieri Pursuing $1 Billion Distressed Mortgage Fund - (www.ml-implode.com)
As I see it, 32 commercial banks and thrifts may see the feces hit the fan blades - (www.ml-implode.com)
Comptroller Dugan on "Unprecedented Home Equity Loan Losses" - (www.ml-implode.com)
Existing Home Sales Match All-Time Low in April; Inventory Swells - (www.ml-implode.com)
Builders STILL Tout No-Money Down, Adjustable Mortgages - (money.cnn.com)
Fannie Still Runs Amok: Didn't We Learn Anything? - (www.seekingalpha.com)
Freddie Mac Suffers Bout of "Temporary" Insanity - (www.bloomberg.com)
US House Prices Tumble 3.1% in First Quarter - (www.bloomberg.com)
Gov't house price index posts largest drop in 17-year history - (www.breitbart.com)
Trouble ahead for global house prices - (www.economist.com)
More Questions Are Raised About Moody's Ratings - (www.nytimes.com)
Pimco's Gross Says U.S. Underestimating Inflation - (www.bloomberg.com)

An inquiry into interbank loan rate - (www.iht.com)
Bad Oil Bets Haunt Speculators - (online.wsj.com)
Prices of Credit Derivatives Take a Drift - (online.wsj.com)
Foreclosure forecast grim - (www.signonsandiego.com)
If $4 Gas Is Bad, Just Wait - (online.wsj.com)

Retailers face uncertain second half of 2008 - (www.signonsandiego.com)
Builders Tout Incentives In Bid to Sell Homes - (online.wsj.com)
Moody's Cuts AIG's Senior Unsecured Credit Rating After Loss - (www.bloomberg.com)
Hybrid sales are zooming - (www.latimes.com)
McDonald's dollar menu to stay, executives say - (www.chicagotribune.com)
Housing slump, fuel prices squeeze moving firms - (www.latimes.com)

New Find Fuels Speculation Brazil Will Be a Power in Oil - (online.wsj.com)
U.K. Economy Grows the Least Since 2005 on Investment - (www.bloomberg.com)
European Services, Manufacturing Growth Slowed in May - (www.bloomberg.com)
Mexico prospering despite U.S. slowdown - (www.latimes.com)
Gauging the Big Bets of a Hot Hand - (www.nytimes.com)
FBI: Mortgage fraud cases on upswing - (www.chicagotribune.com)

Thursday May 8 Housing and Economic stories

Top Stories:

NY Assembly Passes One Year Foreclosure Moratorium Bill - (www.ml-implode.com) – Ah, idiotic politicians again trying to change 200 years of contract law. They are going to ruin many businesses and investment in this country by the time they are through. Funny that NY, which hosts all the investment banks that originated this mess, is now making it worse. The bill would permit the courts to delay foreclosure up to one year for subprime borrowers who meet specific conditions, allowing at-risk homeowners to work with their respective lenders to avoid losing their homes
Vallejo, California City Officials Vote to File for Bankruptcy - (www.bloomberg.com)
House sitting: living free on a grand scale - (www.latimes.com)
"Zero rentals" a hit in Mumbai - (timesofindia.indiatimes.com)
Fannie Mae Playing Russian Roulette With America - (www.nytimes.com)
Oil jumps over $123 on drop in diesel, heating oil supplies - (news.ino.com) – As my co-worker says, they might as well start raising the price in $5 or $10 increments J
White House threatens veto of FHA-rescue bill - (www.ml-implode.com) - The House on Wednesday will begin debate on a housing package that would let the government back loans for homeowners at risk ...
CitiMortgage To Drop Citi Residential Lending's Retail - 3,000 Jobs Gone - (www.ml-implode.com) - In a 2008-05-06 memo to CitiMortgage and Citi Residential Lending (CRL) employees, it is announced that CRL's retail staff and s...
Deterioration in Pending Home Sales Confirms Broader Trend, Economists Say - (www.ml-implode.com) - "Economists say the March report for pending home sales confirms what has been known for many months now: the U.S. housing marke...
Why Is Congress Doubling Down on Mortgage Mess? - (blog.heritage.org)
Once bulletproof housing markets get hit - (money.cnn.com)
Seattle sellers forced to lower prices - (seattletimes.nwsource.com)
Countrywide Eliminates Equity Credit Lines in Vegas - (www.bloomberg.com)
Greeks set to pay price for feelgood years - (www.ft.com)
Emblem of O.C.’s $600,000 home market, now a short sale - (www.ocregister.com)


Other Stories:

Fannie Mae losing billions, taxpayers on hook - (news.yahoo.com)
Housing picture worsens as Fannie sees price drop - (www.latimes.com)
Banks negate Fed efforts to boost liquidity - (www.investmentexecutive.com)
Moving Chronicles In Silicon Valley - (www.viewfromsiliconvalley.com)
Fed Rate Cuts Boosting Food Prices - (www.marketwatch.com)KC Fed President Hoenig Says Inflation Serious - Rates Must Rise - (www.bloomberg.com)Paying for Greenspan's Lunch - (www.eastvalleytribune.com)
Congress: You Can’t Stop A Hurricane - (www.ml-implode.com) - In spite of the devastation, there were no "hurricane prevention" bills. Congress recognized that while the emergency respons...
Mirable Dictu! The Journal Says a Few Discouraging Words About the Markets and Economy - (www.ml-implode.com) - "The Wall Street Journal so often presents the optimistic case that it's important to reinforce those occasions when it provides...
Pending Home Sales Index Declines - (www.ml-implode.com)

How Closely Are You Tracking Your House's Value? - (blogs.wsj.com)
Big drop in Western WA house prices, sales - (www.nwcn.com)
Foreclosures double, house prices tumble - (www.usatoday.com)
Mortgage crisis spreads from subprime to standard loans - (www.fosters.com)
More Than Half of 2006 Sales Now Underwater - (www.housingwire.com)
NAR's Liar Learah finally tells a little truth - (www.newsweek.com)
Why should I EVER buy a house? - (patrick.net)

Market slides further on oil fallout - (www.reuters.com)
Oil jumps over $123 on drop in diesel, heating oil supplies - (www.ap.com)
Dollar Rises on U.S. Productivity, Signs of European Slowdown - (www.bloomberg.com)

Hoenig Says Inflation `Serious,' May Prompt Rate Rise - (www.bloomberg.com)
Pending Sales of Existing Homes in U.S. Decreased 1% in March - (www.bloomberg.com)
Cousins Properties bearish on residential outlook - (www.ajc.com)
Bernanke Wants Fed to Pay Interest on Bank Reserves - (www.bloomberg.com)
Productivity in U.S. Rose More Than Forecast in First Quarter - (www.bloomberg.com)
Merrill Expects U.S. Consumer Loan Defaults to Rise - (www.bloomberg.com)
Vegas sewer rate hikei in the cards - (www.lvrj.com)
Week-to-week mortgage applications up 15.6% - (www.marketwatch.com)

Some See Oil At $150 a Barrel This Year - (online.wsj.com)
Student-Loan Market: Another Bubble? - (online.wsj.com)
Blank check companies can't find deals - (www.financialweek.com)
Corporates Go on Borrowing Binge - (www.cfo.com)
For FHA, a Huge Task and Uncertain Role - (www.washingtonpost.com)
Corporate defaults on upswing as debt comes due - (www.usatoday.com)
GE Real Estate to lend $960 million to REIT - (www.financialweek.com)
Short Interest Is Steady on Big Board - (online.wsj.com)

Cisco Profit Falls 5.4%; Forecast Meets Estimates - (www.bloomberg.com)
Discounts May Hurt Retail Earnings - (online.wsj.com)
Legg Mason hit by first loss in 25 years - (www.ft.com)
UBS Faces U.S. Tax Evasion Probe; Employee Detained - (www.bloomberg.com)
Healthcare costs pinch employers - (www.latimes.com)
More pink slips coming, as UBS aims to cut 5,500 jobs - (www.financialweek.com)
Tight Credit Worries for a Hotel and Mall Operator - (www.nytimes.com)
GM, Ford and Toyota won't match Chrysler gas subsidies - (www.latimes.com)
With food costs rising, ethanol benefits now questioned - (www.signonsandiego.com)
Fannie's Alt-A Issue - (www.forbes.com)
A Feud in the Bear Stearns Family - (www.nytimes.com)

European Retail Sales Drop by Record on Rising Costs - (www.bloomberg.com)
China Stocks Fall on Share Glut Concern - (www.bloomberg.com)
Petrobras Hiring 14,000 Geologists, Oil Rig Workers - (www.bloomberg.com)

California screaming: Tales from the housing bust - (money.cnn.com)
Malware discovered in swapped MP3s, MPEGs - (www.news.com)
Subprime disease breeding ground: pools - (www.marketwatch.com)
Frustrated owners try to unload their guzzlers - (www.boston.com)
Electric vehicles get Georgia Tech viewing - (www.ajc.com)

Wednesday May 7 Housing and Economic stories

Top Stories:

Vallejo, California City Officials Vote to File for Bankruptcy - (www.bloomberg.com) - Vallejo, California's city council voted to go into bankruptcy, saying the city doesn't have enough money to pay its bills afte...
White House threatens veto of FHA-rescue bill - (www.ml-implode.com)- The House on Wednesday will begin debate on a housing package that would let the government back loans for homeowners at risk ...
Is Pessimism Extreme Enough to Mark Housing Bottom? No. - (Charles Hugh Smith at www.oftwominds.com)
If you bought in 2006 its 50/50 you’re underwater - (www.ml-implode.com) - "Zillow posted some interesting analysis today in which they claim that 50% of all home buyers who purchased a home in 2006 are ...
WaMu's Suspect Mortgage Pool - (www.ml-implode.com)
LOOK OUT!! Home Equity Line Suspensions Go Countrywide…City by City! - (www.ml-implode.com)
The worst is not over - (www.bloomberg.com)
Historic credit crunch still worsening despite Fed's inflation orgy - (www.marketwatch.com)
Why Did the Mortgage Market Go Out of Control? - (www.seekingalpha.com)
FBI Mortgage Fraud Investigation "Overlooks" Fannie Mae and Federal Reserve - (www.nytimes.com)
BofA may lower Countrywide bid to $2/share or below - (www.marketwatch.com)
BofA may renegotiate deal to buy Countrywide - (news.yahoo.com)


Other Stories:

Pending Home Sales Index Declines - (www.ml-implode.com)- "The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, edged down 1.0 percent to 83.0 fr...
Kevin Phillips on the U.S. shark tank and other ills - (www.ml-implode.com) - Kevin Phillips, author of "Bad Money - Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism" was inte...
Tax Policy and the House Price Bubble - (www.ml-implode.com)
Draining national prosperity - (www.ml-implode.com)
New Price Drop Could Imperil Mortgage Agencies - (www.ml-implode.com)
Countrywide Establishing Bankruptcy Ombudsman's Office - (www.ml-implode.com)

Rents Falling Along With House Prices - (www.cbs4.com)
Rent-free defaulted houseowners keep economy going - (www.californiahousingforecast.com)
East Palo Alto House Price Rolled Back to 1999 - (sanmateore.dreamhosters.com)
Simple Economics - (www.patrick.net)
Emblem of OC's house market now a short sale - (lansner.freedomblogging.com)
Warren Buffett at annual Berkshire meeting: Think small - (money.cnn.com)
Buffett Castigates Wall Street on Mortgage Disaster - (www.bloomberg.com)
In Need of Serious Repair: U.S. Mortgage Finance - (www.seekingalpha.com)
Bank of America should completely walk away from Countrywide - (www.bloomberg.com)
Housebuyers seek less space, more features - (www.tradingmarkets.com)

Oil Rises to a Record $122.73 on Nigeria Attack, Demand Growth - (www.bloomberg.com)
Gold Rises as Dollar Declines, Oil Tops $122; Silver Gains - (www.bloomberg.com)
Ten-Year Treasury Notes Fall Before Government Auction Tomorrow - (www.bloomberg.com)
U.S. Stocks Rise as Energy Producers, Financial Companies Gain - (www.bloomberg.com)

Bernanke pushes government help to curb foreclosures - (www.latimes.com)
Many wireless resellers going under - (www.usatoday.com)

Goldman's Murti Says Oil `Likely' to Reach $150-$200 - (www.bloomberg.com)
Hedge-Fund Portfolios Stockpile Cash - (online.wsj.com)
How low will real estate go? - (www.latimes.com)
Fannie Mae to Raise $6 Billion After Posting Loss - (www.bloomberg.com)
Cisco Profit Falls 5.4%; Forecast Meets Estimates - (www.bloomberg.com)
Doubts Raised on Big Backers of Mortgages - (www.nytimes.com)
Home lender ResCap facing cash crunch - (www.latimes.com)
GE to stop financing boat, motor home purchases - (www.latimes.com)
UBS Set to Cut 5,500 Jobs After First-Quarter Loss - (www.bloomberg.com)
Sprint Mulls Shedding Nextel Unit - (online.wsj.com)
Acquisition of Lender Is Possibly in Jeopardy - (www.nytimes.com)
D.R. Horton swings to $1.3 billion loss - Market Watch from Dow Jones
Wal-Mart expands low-price drug program; Target follows - (www.chicagotribune.com)
Merck to cut 1,200 sales jobs following regulatory setback - (www.chicagotribune.com)
Economic Troubles Affect the Vegas Strip - (www.nytimes.com)
Tropicana casino group files for bankruptcy - (afp.google.com)
Sears, Like Consumers, Cuts Back - (online.wsj.com)
Swiss Re First-Quarter Profit Falls on Writedown - (www.bloomberg.com)
Tight Credit Worries for a Hotel and Mall Operator - (www.nytimes.com)

Rising Food Prices Hurting 1 Billion Asians, ADB's Kuroda Says - (www.bloomberg.com)
Brazil seeing sweet profit from sugar cane-based ethanol - (www.dallasnews.com)
Indonesia Raises Key Rate; Says May `Adjust' Further - (www.bloomberg.com)
U.K. Services Expand at Slowest Pace in Five Years - (www.bloomberg.com)
Brics offer investors a varied harvest - (www.ft.com)
Warning on current account deficit - (www.ft.com)
Subprime disease breeding ground: pools - (www.marketwatch.com)

Thursday April 24 Housing and Economic stories

Top Stories:

Good Bush Clip – We are not in a recession - (www.youtube.com) – We are in a slowdown, not in a recession J
First National Mortgage Sources Files BK - (www.ml-implode.com)
Buybacks, Lawsuits Move Cameron Financial Group, Inc. (1st Choice Mtg) To File BK - (www.ml-implode.com) - Cameron Financial Group, Inc. (dba 1st Choice Mortgage) has filed for Chapter 7. View the petition, lawsuits and more in our la...
AMBAC: Lawyers Scrutinizing Certain Transactions - (www.ml-implode.com) - "Bond insurer Ambac Financial Group Inc. has hired legal and forensic experts to examine 17 of its financial guarantee transact...
Roubini predicts 12 to 18 month recession - (www.youtube.com)
Americans slaves to jobs to keep houses - (economictimes.indiatimes.com)
Excessive House Prices Cause Divorce - (articles.moneycentral.msn.com) – I am sure excessive house prices caused marriages initially when couples were blinded by how smart their spouses were J
The cost of a lifeline: Humbled financial groups brace for more regulation - (www.ft.com) – Do any of us feel sorry for the financials?
Countrywide ripped at hearing - (www.chicagotribune.com) – Again, do any of us feel sorry for CFC? Of course, Countrywide did not attend the hearing.
If the public knew more, they wouldn't use realtors - (news.com.au)
Nevada: Borrowers trash homes - (www.businessweek.com)
The House-Burning Foreclosure Alternative - (www.npr.org)
Stuck with two mortgages - (www.chicagobusiness.com)
3% of Housedebtors To Be In Foreclosure In Next Two Years - (www.pewtrusts.org)
Government Seeks to Buy Student Loans - (www.nytimes.com) – If the government buys student loans from the servicers, then these servicing companies should make very little profit. They are not finding investors or using their own money so what exactly what value will they be providing? None that I can see except helping users fill out the needed paperwork.
Financial groups raise $28bn - (www.ft.com) – Of course, they are raising the money by diluting their existing shares.
Lenders Swamped by Delinquent Mortgages - (www.washingtonpost.com)
Office Investor Broadway Partners Faces the Music on Short-Term Debt - (online.wsj.com) - Broadway's strategy for dealing with its mountain of debt will involve several pieces falling into place amid a challenging real-estate finance market. It wants to raise $200 million in equity to purchase some of its short-term debt back at a discount to its face value. That will involve both persuading equity partners to put up more cash, and getting debtholders to part with their investments at a loss. It also needs to execute property sales at a time when buyers are having trouble securing loans.
Subprime crisis provokes ‘tsunami’ of lawsuits - (www.ft.com)
Ambac Posts Loss on CDO Writedowns, New Business Drop - (www.bloomberg.com) – Ambak stock drops 45% on the news and is again at 52 week lows.
Americans hoard food as industry seeks regs - (www.washingtontimes.com)


Other Stories:

Target credit-card defaults jump - (www.startribune.com)
Equifirst Halts All Lending Pending FHA Rollout - (www.ml-implode.com) - "Effective today, EquiFirst is suspending our subprime lending products until further notice. We will focus all of our efforts o...
Ailing Ambac - (www.ml-implode.com) - Even worse, its “good bank” line of work has evaporated more quickly than its “bad bank” operations. Business in public finance ...
Washington Mutual spent $980,000 lobbying - (www.ml-implode.com)
Bank Of America CEO Lewis Defends Countrywide Acquisition - (www.ml-implode.com)


Foreclosures soar in state, SF Bay Area - (sfgate.com)
Foreclosures surge in California - (www.centralvalleybusinesstimes.com)
California foreclosure surge 327% from '07 levels - (latimesblogs.latimes.com)
Prices tumbling in Florida's luxury market - (www.reportonbusiness.com)
Financial regulatory limitations - (www.ml-implode.com) - Regulation can and often does add more systemic risk to the system because people believe the regulators will see problems and ...

Starbucks Sees First Annual Profit Decline in 8 Years - (www.bloomberg.com)
Amazon.com Net Rises 29%; Shares Decline on Forecast - (www.bloomberg.com)
Housing slump may exceed Depression - (www.signonsandiego.com)
Deflation In A Fiat Regime? - (Mish)
Mortgage rescue plan will hurt more than it helps - (money.cnn.com)
No help yet for most subprime borrowers - (money.cnn.com)
Anatomy of a Collapse - (www.nytimes.com)
Triple-A Failure - (biz.yahoo.com)
Why Wall St. Needed Credit Default Swaps - (www.seekingalpha.com)
Piling On: Borrowers Buried by Fees - (www.nytimes.com)
$200K per year, and still not "rich"? - (www.sfgate.com)
Lenders Swamped by Delinquent Mortgages - (www.washingtonpost.com)

California home foreclosures hit a record - (www.latimes.com)
Inflation Fears Could End Fed's Fiddling - (www.thestreet.com)
U.S. Architects' Services Index Falls to Record as Demand Slows - (www.bloomberg.com)
Gasoline prices have yet to peak - (www.kansascity.com)
Texas and area nurses consider pros and cons of unionization - (www.dallasnews.com)
Libor Hits U.S. Borrowers - (online.wsj.com)
Credit vehicle defaults continue to climb - (www.ft.com)
Regulators Back Away From Changes to Commodity Hedging - (www.nytimes.com)

Yahoo's earnings report fails to wow Wall Street - (www.latimes.com)
Effort to Rein In Fannie, Freddie Gains Steam - (www.washingtonpost.com)
Loans fear spreads beyond mortgages as defaults climb - (www.ft.com)
UPS 1Q profit, revenues up; outlook lower for the year - (www.ajc.com)
Regulator fears wave of bank failures - (www.ft.com)
New rules would raise fuel-economy standards - (www.latimes.com)

Wall Street losing patience with UnitedHealth - (www.startribune.com)
FDA Short of Funds For Inspections - (online.wsj.com)
Surging Energy Costs Take a Big Toll on Airline Earnings - (www.nytimes.com)
UBS to Slim Down Investment Bank After Record Losses - (www.bloomberg.com)
Craigslist fires back at eBay over lawsuit - (money.cnn.com)

European Services Growth Unexpectedly Accelerated - (www.bloomberg.com)
India to take steps to control rising prices for food - (www.signonsandiego.com)
Bank of England Splits Three Ways in Rate-Cut Vote - (www.bloomberg.com)
Australia's core inflation rises at fastest pace in nearly 17 years - (www.iht.com)
Singapore's March Inflation Accelerates to Fastest in 26 Years - (www.bloomberg.com)

The emerging markets will export inflation across the globe - (www.ft.com)
Food Crisis Is Depicted As 'Silent Tsunami' - (www.washingtonpost.com)
Service contracts provide never-ending angst - (www.chron.com)