Wednesday December 17 Housing and Economic stories

TOP STORIES:

California’s debt downgraded amid budget crisis - (www.ft.com) California on Thursday prepared to suspend $5bn in financing for schools, roads, power projects and levee repairs after the state’s mounting budget crisis led Standard & Poor’s to downgrade some of its short-term debt. In the past, California has been able to raise money in the bond markets to pay for infrastructure projects. However, with the markets effectively closed to the state, it will use funds earmarked for infrastructure to cover short-term obligations. Bill Lockyer, California’s treasurer, told the Financial Times the state planned to shift $5bn in infrastructure funds to short-term obligations in the near-term. He said it was working on plans to re-allocate an additional $7.5bn in such funds. A state spokesman said that current projections showed that California’s budget deficit would hit $41.8bn by 2010. Late Wednesday, S&P downgraded $5bn of short-term debt sold by California less than two months ago and warned it may downgrade a further $54bn in debt. “Our budget problems have become so severe and so noticeable that investors want better securities,” Mr Lockyer said.

Collapse of BCE plan fuels private equity industry concern - (www.ft.com) Fear of financial “Armageddon” is starving private equity of fresh funds, one investor warned on Thursday, after the collapse of the $41bn takeover of Canada’s BCE telecoms group marked a low for the industry. The BCE deal would have been the world’s largest leveraged buy-out when it was announced in June 2007. Its collapse underlines how severely conditions have turned against private equity in the past 18 months. The credit crunch has prompted banks to stop providing loans for buy-outs – the lifeblood of private equity – while market turmoil has made many investors incapable or unwilling to supply the cash needed for the equity portion of buy-outs. “As long as we are considering an Armageddon type of scenario, our hands are going to be tied for new funding in private equity,” Mark Boyle, head of private equity at the $140bn investment arm of Northwestern Mutual Life Insurance, told a conference on Thursday in London. “This environment has investment professionals so rattled they are thinking the unthinkable.” The groups that rode the “mega buy-out” boom, such as Blackstone, Kohlberg Kravis Roberts, TPG Capital and Bain Capital are already unable to raise much debt. If they are starved of fresh investor money for new deals, their future looks even less certain.

BCE buy-out’s ‘dirty little secret’ - (www.ft.com) “We had every expectation it would close when it was renegotiated,” said one person involved in the matter. But after the collapse of Lehman Brothers and AIG rescue set markets into a tailspin in September, shares of BCE sank as investors again grew concerned that the deal would not close. This time, the worries stemmed from the distress spreading across the global banking sector, which brought doubts that Citigroup, Deutsche Bank, Toronto-Dominion Bank and Royal Bank of Scotland, which was in particularly dire straits at the time, could fund the deal. Concerns over the banks’ strength proved valid, as both RBS and Citigroup were rescued. But the banks were still bound by BCE’s credit agreement, and would have been on the hook to absorb C$34bn in debt to fund the deal. The banks could have been forced to take immediate markdowns of about C$10bn on the package of leveraged loans and high-yield bonds to reflect those markets’ depressed valuations, according to people close to the matter. Citigroup and Deutsche Bank, which had committed to provide 40 and 28 per cent of the funding respectively, would have taken the hardest hit. One person close to the deal said that, for the banks, on Thursday was an “unquestionably good morning”.

Sprint Nextel’s debt downgraded to junk - (www.ft.com) Shares in Sprint Nextel, the third largest US mobile network operator, fell sharply on Thursday after Moody’s, the credit rating agency, downgraded its debt to junk status and warned that the company would continue to struggle in the face of “intense competition and weak economic conditions”. The 14 per cent, or 34 cents, fall in the company’s stock, to $2.08, together with a similar decline for Ciena, a telecommunications network equipment maker, underscored the growing impact of the recession on the sector. Moody’s said it believed Sprint’s efforts to stem customer losses would take longer than expected and predicted that operating cash flows and subscriber numbers would continue to decline until the second half of 2009 before stabilising.

Illinois Governor Suspends Business With Bank Of America - (www.huffingtonpost.com) Odd timing, but the day before he was arrested, Blago requested that no Illinois government agencies do business with Bank of America. llinois Governor Rod Blagojevich announced Monday that he is asking all Illinois government agencies to suspend business with Bank of America. Blagojevich contended that Bank Of America received a multi-billion dollar bailout from the government and should accordingly restore credit to the Republic Windows & Doors company in Chicago

Fed Mulls Issuing Own Debt - (www.cnbc.com) The U.S. Federal Reserve is considering issuing its own debt for the first time, the Wall Street Journal said, citing people familiar with the matter. Fed officials have approached Congress about the move, which could include issuing bills or some other form of debt and would provide the central bank with more flexibility to tackle the financial crisis, the Journal said. The Fed could not be immediately reached for comment. The Fed can already print as much money as it wants, but issuing debt is largely the province of the Treasury Department.

Sex, Lies, and Subprime Mortgages - (www.businessweek.com) But in the mortgage business, it went further: The women allegedly offering sexual favors were bank employees. Evan Stone, president of Walnut Creek (Calif.) mortgage brokerage Pacific Union Financial, says "minimally trained and minimally dressed" wholesalers often wooed brokers. He says he regularly got visits in his suburban office from representatives wearing unusually short skirts to entice him and his team of brokers to party at the local Ruth's Chris Steak House. Stone says one New Century wholesaler offered to fly him to Chicago to "have a good time." He says he declined all offers of sexual favors. "There were some indecent proposals made," he says. "That was part of building the relationship."

Madoff accused of fraud - (www.marketwatch.com) Bernard Madoff, former Nasdaq Stock Market chairman and founder of Bernard L. Madoff Investment Securities LLC, was arrested and charged with securities fraud Thursday in what federal prosecutors called a Ponzi scheme that could involve losses of more than $50 billion. Madoff, 70, of New York, was charged with one count of securities fraud, according to a statement from the Acting U.S. Attorney for the Southern District of New York and the Federal Bureau of Investigation. The Securities and Exchange Commission filed a complaint in federal court in Manhattan seeking an asset freeze and the appointment of a receiver for the firm run by Madoff. "We are alleging a massive fraud, both in terms of scope and duration," said SEC Enforcement Bureau director Linda Thomsen in a statement. "We are moving quickly and decisively to stop the fraud and protect remaining assets for investors, and we are working closely with the criminal authorities to hold Mr. Madoff accountable."

Vanguard's Bogle: Homeowner Bailout Is Needed - (www.cnbc.com) The survival of the U.S. economy depends on helping homeowners, said John Bogle, The Vanguard Group founder and former CEO. “We once said, we have companies that are too large to fail and homeowners that are too small to bail,” Bogle told CNBC’s Erin Burnett. “We have to help the mortgage owners; that’s the only way to get around it.” Bogle said mortgage modifications should be part of a homeowner bailout. “Rewriting the terms, the maturities, the payments, the interest rates all have to be part of that,” he said. “That’s going to be a tough job.” Bailing out U.S. homeowners would require a large federal government staff, he said. “I don’t think people have realized the major implications of the government having to run the economy,” he said

Timeshare Vacation Homes Squeezed by Credit Crisis - (www.cnbc.com) The timeshare vacation home, that status symbol of the American middle class, has been hit by a double whammy amid the global credit crisis. Credit for consumers to finance timeshare purchases is harder to come by, and the securitization market for hotel companies selling bonds backed by timeshare deals has mostly closed its doors. "In the last few months, sales have really dropped off a cliff—consumer credit is really disappearing in a lot of ways," said Jeremy Glaser, lodging industry analyst at investment research firm Morningstar. "The syndication (securitization) market has all but gone," said lodging industry veteran Bjorn Hanson of New York University. This is a double dose of bad news for big hotel firms like Wyndham Worldwide [WYN 5.66 -0.61 (-9.74%) ] , Marriott International [MAR 16.59 -1.00 (-5.69%) ] and Starwood Hotels & Resorts Worldwide [HOT 16.15 -0.80 (-4.72%) ] , for which timeshare had become a big earner in recent years. Wyndham said on Monday it will cut about 4,000 jobs as it shrinks its timeshare business to reduce its reliance on a shaky securitization market. Wyndham expects to reduce vacation ownership interest sales in 2009 to $1.2 billion from expected gross sales of $2 billion in 2008 by eliminating sales offices and marketing programs. Marriott International's third-quarter profit fell 28 percent as timeshare slowed. Marriott has warned that 2009 will be tough and that its timeshare investment spending is expected to decline to reflect weaker demand. Starwood also reported declining revenues from timeshare in the third quarter. Starwood said it closed three sales centers and was reducing overhead to fit lowered expectations for the business.

Ohio Sheriff Refuses to Process “Heartless” Evictions - (www.housingwire.com) Saying that evicting former owners and tenants during winter weather and a recession is “heartless,” Butler County, Ohio sheriff Richard Jones has become the third sheriff this year to refuse to process some eviction orders. Jones on Tuesday ordered his deputies to ensure that people have shelter before they’re forced out of their homes, according to a report by WLWT television in Hamilton, Ohio; otherwise, he said his department will refuse to honor all eviction orders.


OTHER STORIES:

BlackRock Cuts 500 Jobs, Struggles with Outflows - (www.cnbc.com)
UBS Freezes $6 Billion Property Fund - (www.cnbc.com)
EU Commits to Stimulus Worth 1.5% of GDP - (www.cnbc.com)
Time to Reverse Bank Bailout: Economist - (www.cnbc.com)
Wells Fargo to Take $40 Billion Charge: Bove - (www.cnbc.com)

Warren Buffett Hikes Burlington Northern Stake to 20% - (www.cnbc.com)
Medvedev Hints at Coordinating Oil Cuts with OPEC - (www.cnbc.com)

Our asset-dependent economy - (themessthatgreenspanmade.blogspot.com)
Own Gold? Time to Fold - (www.seekingalpha.com)
Humpty Dumpty On Inflation - (Mish at globaleconomicanalysis.blogspot.com)
Just got back from bankruptcy court, things are bad - (www.doomers.us)
'Pay option' loans could swell defaults - (msnbc.msn.com)
Foreclosure Storm Will Hit U.S. in 09 Amid Job Loss - (www.bloomberg.com)
White-Collar Unemployment Spreading - (cityroom.blogs.nytimes.com)
Web 2.0 did not learn from Bust 1.0 - (www.marketwatch.com)
Fighting Foreclosures, F.D.I.C. Chief Draws Fire - (www.nytimes.com)
Housing foreclosures draw protesters to Bank of America - (www.freep.com)
Bank of America to Cut 35,000 Jobs Over 3 Years - (www.nytimes.com)
Congressional Motors introduces The Pelosi - (iowahawk.typepad.com)

Madoff Charged in $50 Billion Fraud at Advisory Firm - (www.bloomberg.com)
Madoff ‘Big Lie’ Hits Fairfield Sentry, Kingate Funds - (www.bloomberg.com)
Collapse of BCE plan fuels private equity industry concern - (www.ft.com)
Jones Concedes Errors With Bacon, Griffin in Strategy Shakeout - (www.bloomberg.com)
S & P slightly lowers California's credit rating - (www.latimes.com)
30-Year Mortgage Rate Hits Its Lowest Level in 4 Years - (www.washingtonpost.com)
Wall Street bonuses seen dropping 50 percent - (www.reuters.com)
China’s Economic Slowdown Is Deepening, Two Top Officials Warn - (www.bloomberg.com)
India Industrial Output Falls for 1st Time Since 1993 - (www.bloomberg.com)
HBOS Loan Writedowns for 2008 Rise to $7.5 Billion - (www.bloomberg.com)
Household Net Worth in U.S. Declines Most on Record - (www.bloomberg.com)
California budget deficit to hit $41.8B by 2010 - (biz.yahoo.com/ap)
Debt held by U.S. households shrinks for first time - (www.latimes.com)
Why home values may take decades to recover - (www.usatoday.com)
Study Finds White-Collar Jobless Rate Spreading - (www.nytimes.com)
Auto Bailout Talks Collapse as Senate Deadlocks Over Wages - (www.washingtonpost.com)
GM, Chrysler Survival Options Narrow After Vote Fails - (www.bloomberg.com)
KB Toys Succumbs to Holiday Slump - (www.nytimes.com)
Cemex tumbles as it fails to refinance debt - (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)

Wednesday May 14 Housing and Economic stories

Top Stories:

"Enormous" Bank Losses Still Not Acknowledged - (www.bloomberg.com)
Brentwood: California's poster child for housing bust - (www.scrippsnews.com)
California Screaming - (money.cnn.com)
Results from Piecemeal Housing Plans Leave Doubts About Effectiveness - (www.ml-implode.com) - "There are so many piecemeal plans operating such as Hope Now which is largely a product of many large mortgage servicers prodde...
Rep. Feeney Defends Renters and Real Owners - (www.youtube.com)
Dick Armey Discusses AngryRenter.com with Glenn Beck - (www.youtube.com)
Toll Brothers Revenue Drops as Housing Slump Persists - (www.ml-implode.com)
Frank-Dodd Proposal Makes Sense a Veto by the White House is Reckless - (www.ml-implode.com)
About Half Of Cleveland's Subprime Loans Ended In Foreclosure - (www.newsnet5.com)
Economy Puts Tight Squeeze On RV Makers - (online.wsj.com)


Other Stories:

$100,000+ Condos Made From Discarded Containers - (www.ml-implode.com) - "Discarded containers have been stacking up at ports. They are cheaper to build new than to return to their country of origin, s...
Even top commercial properties are suffering from market crisis - (www.ml-implode.com)
London Has Most Widespread Home-Price Drop Since 1994 - (www.ml-implode.com)
Citi Is Beyond Repair - Whitney Trashes Plan - (www.ml-implode.com)
CDO Debt Could Pose Renewed Danger For Banks - (www.ml-implode.com)
What causes foreclosures? - (www.wallstreetexaminer.com)
When Should I Buy a House? - (www.millionairemommynextdoor.blogspot.com)
The Fed Continues to Bamboozle Consumers - (www.dailyreckoning.com.au)
Where Your Tax Rebate Is Really Going - (www.minyanville.com)
Jumbo Loans Coming With Jumbo Price Tag - (www.ml-implode.com)
"Investor says HSBC undervalued loss by $30bn" - (www.ml-implode.com)
California man losing nine houses in mortgage mess - (www.reuters.com)
New mortgage crisis looms - (realestate.msn.com)
The Ticking Credit Card Time Bomb - (www.financialsense.com)
What Your House Will Be Worth Next Year - (www.efinancedirectory.com)
Democrats Face Rescue Backlash - (online.wsj.com)
Audio: Awards For Global Credit Crisis - (www.podcast.thisamericanlife.org)

Treasuries Fall as Retail Sales Less Autos Increase in April - (www.bloomberg.com)
Oil Rises to Record on Signs Refiners Not Meeting Fuel Demand - (www.bloomberg.com)
Most U.S. Stocks Gain, Led by Energy Shares; Yahoo Rallies - (www.bloomberg.com)
Commuting costs blamed as house prices fall - (www.palmbeachpost.com)
Public trust eroding as watchdogs fall down on the job - (www.marketwatch.com)
Regulators under fire for ignoring red flags - (www.washingtontimes.com)
US Housing Crash And Australia - (www.sixtyminutes.ninemsn.com.au)

U.S. April Retail Sales Fall 0.2%; Rise 0.5% Excluding Autos - (www.bloomberg.com)
U.S. Import Prices Rise 1.8% in April, Up 1.1% Excluding Oil - (www.bloomberg.com)
Bernanke Says Fed to Boost Loans to Banks as Needed - (www.bloomberg.com)
Housing Prices Tumble in Two-Thirds of U.S. Cities - (www.bloomberg.com)
Conformity trumphs green living in some HOAs - (www.chron.com)
Survey: 1 in 10 boomers borrowing for everyday expenses - (www.chicagotribune.com)
Pain at the Other Pump: Shoe Prices Rise - (online.wsj.com)
Latest Groans: Small-Business Loans - (online.wsj.com)

Libor Poised for Shake-Up as Credibility Is Doubted - (www.bloomberg.com)
Average gas prices set record at $3.72 a gallon - (www.usatoday.com)
Farmers unable to cash in on soaring food prices - (www.latimes.com)
Corn Prices Rise, Pitting Chickens Against Ethanol - (www.washingtonpost.com)
Wal-Mart Net Increases; Shares Fall on Forecast - (www.bloomberg.com)
Bank of America Sees Higher Losses on Home Equity - (www.bloomberg.com)
Goldman, Merrill Estimates Reduced at Oppenheimer - (www.bloomberg.com)
Hewlett-Packard Agrees to Acquire Electronic Data - (www.bloomberg.com)
U.K. April Inflation Rate Jumps the Most Since 2002 - (www.bloomberg.com)
China Retail Sales Rise at Fastest Pace Since 1999 - (www.bloomberg.com)
India's Futures Ban Is No Answer to Inflation: Andy Mukherjee - (www.bloomberg.com)
Surveyors' mood is gloomiest in nearly 30 years as slump deepens - (business.timesonline.co.uk)

A Wish List for Fixing Wall Street - (www.nytimes.com)

Friday April 25 Housing and Economic stories

Top Stories:

Bailout of the Year - (www.ml-implode.com) - The student loan side of the credit crunch has been exacerbated by recent legislation from Congress, and now a crisis is brewing on top of a crisis: To summarize: Congress mandated a return on student loans that is too low to attract private capital in the current market. So Congress will now use your money to create artificial investor demand. Taxpayers will bear more risk so that Congress can fashion a new business model to replace the one it just destroyed. The Bush Administration, unwisely but typically, has endorsed this approach
California Treasurer Fires Shots at Rating Agencies - (www.cnbc.com) – Rips S&P and says they “rip off taxpayers”. Subtly implies California pension funds to unload shares of S&P parent.
Frank pushes for mortgage intervention - (www.ft.com) - High cost of failure to act, says Democrat
A federal cure for the U.S. housing crisis faces obstacles - (www.latimes.com)
Students Lose Billions as Colleges Petition for Loans - (www.bloomberg.com)
London hit with 'Code Red' by Moody's - (www.telegraph.co.uk)
New-Home Sales in the U.S. Plunge More Than Forecast - (www.bloomberg.com)
Debt Collection Done From India Appeals to U.S. Agencies - (www.nytimes.com)
Fannie and Freddie Warned to Play "Fair" - (www.cfo.com)
Ambac May Need More Capital After Reporting Loss, Analysts Say - (www.bloomberg.com)
GE's Immelt: Housing Great Depression - (money.cnn.com)
Walking Away From Foreclosure Becoming Socially Acceptable - (realtytrac.com)
The Worst Is Not Over - (www.washingtonpost.com)
Trader charged with spreading false rumours - (www.ft.com) - SEC accuses Blackstone short-seller
Fed bank bailout totals $360 billion - (money.cnn.com)
FHLB Chicago to stop mortgage-buying program - (www.ml-implode.com) – “The Federal Home Loan Bank of Chicago on Wednesday said it would halt its program of purchasing mortgage loans, citing onerous costs. The FHLB of Chicago will no longer make or renew commitments under the program after July 31, Matthew Feldman, acting president of the bank, said on the company's website.”
Moody’s Begins Downgrading AAA-Rated Alt-A RMBS to Junk - (www.ml-implode.com) - 'Moody’s Investors Service issued more Alt-A downgrades on Thursday morning, this time taking a heavy hand to 32 different Aaa-r...
Tidal wave of inventory yet to hit market - (www.researchrecap.com)
Want to Know When Housing Has Bottomed? Here's How - (Charles Hugh Smith at www.oftwominds.com)



Other Stories:

Sam’s Club, Costco limit bulk rice purchases - (www.ap.com)
Bailout backlash - (money.cnn.com)
BailoutWatch: I Can't Even Keep Up - (www.voiceofsandiego.org)
How housing slump bites newspaper profits - (lansner.freedomblogging.com)
Libor to Rise as Banks Stay Wary, Derivatives Signal - (www.bloomberg.com)
Lower payments double interest paid - (reportonbusiness.com)
Forclosure activity continues to climb - (eastbayhousingbubble.blogspot.com)
Mortgage crisis has not really started yet - (www.seekingalpha.com)
ResCap Cut By Moody’s, Borrows $468 Million from GMAC - (www.ml-implode.com) - ''Moody’s Investors Service said late Wednesday that it had again downgraded Residential Capital LLC amid concerns that the mone...
Forget The Name "Countrywide" ... - (www.ml-implode.com) - Bank of America CEO answers a shareholder's question...
Mortgage Rates Rise on Inflationary Concerns - (www.ml-implode.com)
ML-Bulletin: Citi Residential announces "last days", First Horizon sells to Met Life, and more - (www.ml-implode.com)
Tax Receipts: Unmitigated Disaster - (www.ml-implode.com)

Housing Crash Contrarians Say Buy! But Who Buys That? - (nuwireinvestor.com)
How Many People are Really Walking Away From Mortgages? - (mybudget360.com)


FBI Wants Widespread Monitoring of 'Illegal' Internet Activity - (http://www.news.com/)
Feds Meddle In Brewer's Choice of Beer Name (Weed) - (http://www.azcentral.com/)
Whirlpool Posts Lower Profit; Warns on Year; Stock Down 9% - (http://www.marketwatch.com/)
Apple Profit Jumps 36% - (biz.yahoo.com)
Amazon Gains in Slowing Economy - Revs up 37% - (http://www.nytimes.com/)
US New Home Sales Plunge More than Expected - (http://www.bloomberg.com/)
US Regulator Fears Wave of Bank Failures - (us.ft.com)
Howard Ruff: It is Too Late. Hyperinflationary Depression on the Way - (http://www.kitco.com/)
Inflation, deflation, or both? - (news.goldseek.com)
California Price Declines by County and City - (www.dqnews.com)
The High End: Desirable Yes, Immune No - (www.voiceofsandiego.org)
Banks holding tight on prices at fake foreclosure "auctions" - (www.lvrj.com)
Real estate's new hidden market - (www.csmonitor.com)

Merrill and TPG in talks on closer ties - (www.ft.com) - Possibility of investment (i.e., dilution of shares for existing shareholders) to help raise capital
Crude Oil Falls More Than $2 After Dollar Gains Against Euro - (www.bloomberg.com)
Dollar May Extend Gain Against Euro on Fed Rate Expectations - (www.bloomberg.com)
U.S. Durable-Goods Orders Ex-Transportation Rise 1.5%, More Than Estimated - (www.bloomberg.com)
Fed Weighs Pause After Next Rate Cut - (online.wsj.com)
U.S. Unemployment Claims Unexpectedly Fell Last Week - (www.bloomberg.com)
A federal cure for the U.S. housing crisis faces obstacles - (www.latimes.com)
Sam's Club, Costco limit rice purchases - (money.cnn.com)
Rising fuel, hotel costs the pits for NASCAR fans - (www.usatoday.com)

Restaurants Feel Sting Of Surging Costs, Debt - (online.wsj.com)
Microsoft Earnings Decline 11%; Forecast Is Tempered - (www.bloomberg.com)
Toyota takes world sales lead from General Motors - (www.latimes.com)
Inflation Stalks Emerging Markets - (online.wsj.com)
German Business Confidence Drops to Two-Year Low - (www.bloomberg.com)
Credit Suisse Posts SF2.15 Billion Loss on Writedowns - (www.bloomberg.com)
U.K. Retail Sales Fall on Dearth of Consumer Credit - (www.bloomberg.com)
China's Shanghai Composite Index Surges 9.3% on Trading Tax Cut - (www.bloomberg.com)
A Chinese dream: The first car - (www.iht.com)
Why this crisis is still far from finished - (www.ft.com)

Wednesday April 23 Housing and Economic stories

Top Stories:

Starting over at 40 because of a foolish house purchase - (money.cnn.com) – Similar to Pip in Great Expectations starting, this story profiles 10-20 people who are starting over in their 30s and 40s.
The End of Shopping - (www.newsweek.com) - At the end of 2007, household borrowing was a dizzying $14 trillion.For the past quarter century, Americans have gone on an unprecedented consumption binge—for cars, TVs, longer vacations and just about anything. The consequences have been profound for both the United States and the rest of the world, and the passage to something different and unknown may not be an improvement.
Arson to avoid foreclosure? - (www.latimes.com)
Regulator fears wave of bank failures - (www.ft.com) US bank failures could rise above “historical norms” as a weakening economy puts pressure on badly underwritten loans, particularly in commercial real estate, according to a bank regulator - 23:52
The new underground currency - (www.startribune.com) - Thieves are ransacking house after house in search of copper they can sell to scrap dealers for as much as $20,000 a month.
Condos with absolutely zero value - (seekingalpha.com) - AIG, Fannie and Freddie Put the Crunch on Condo Mortgages. imagine a world where condos (outside of NYC, Boston, Chicago and LA) have absolutely no value. They are simply transferred between “owners” for the assumption of operating expenses. Don’t laugh. Operating expenses and taxes, without even considering a mortgage, can easily run over $3000 a month for a nice 2 bedroom/2 bath in southeast Florida. Few retirees could swing this. I do not know how real estate taxes would be calculated, but I would not doubt government’s creativity in collecting revenue.
California foreclosure "surge": Up 327% from '07 levels - (www.ml-implode.com) - "Sinking home values and the collapse of flimsy mortgages sent a record number of California homes into the foreclosure process ...
Housing slump may exceed Depression - (www.ml-implode.com) - ''An influential economist who long predicted the housing market bubble cautioned Tuesday that the slump in the U.S. housing mar...
Condo buyers had a lot to beware of - (www.floridatoday.com)
Oil nears $120 as market tightens - (www.ft.com) - Opec attempts to reassure on supplies
Call Goes Out to Rein In Grain Speculators - (online.wsj.com)
Lenders derail plan to let bankruptcy judges modify mortgages - (www.latimes.com) – Thank god someone derailed this idiotic law, even if it is the lenders. If we change 200 years of contract law in this country, we are all in trouble.
Shanghai down over 50% from peak - (www.ft.com) – Yes, I would call this a stealth crash.
Duesseldorfer Hypo Rescued by Bank Group After Crisis - (www.bloomberg.com)


Other Stories:

Less leverage means smaller deals - (www.financialweek.com)
Renters can't escape housing foreclosure crisis - (www.ml-implode.com) - ''The most brutal real estate slump in decades is reverberating through the rental market. Renters in properties that are being ...
Too many people own houses - (www.tnr.com)
The Houseownership Ideologues - (www.truthout.org)
Government deaf to simple plea: less debt! - (patrick.net)
Falling San Diego house prices are a great thing - (www.signonsandiego.com)
Florida luxury house market shows signs of wear - (www.reuters.com)
Foreclosure Group Says Servicing Efforts Still Fall Short - (www.ml-implode.com) - The group noted that at-risk borrowers are receiving more help than in the past, but most are still not on track for any meanin...
If Lawrence Yun wanted to be more helpful... - (www.ml-implode.com) - ''NAR chief economist Lawrence Yun spun Greenspamisims not the truth of the facts
BofA, Countrywide to Curtail Risky Mortgage Lending - (www.ml-implode.com)
Black Swan song - (www.ml-implode.com)
Option ARM Specialist Downey Financial Loses $248 Million in Q1 - (www.ml-implode.com)
Most Home-Equity Line Delinquencies Keep Rising - (www.ml-implode.com)
SF Bay Area prices continue to fall - (eastbayhousingbubble.blogspot.com)
Graphs of CA Prices Crashing - (patrick.net)
What Ails American Economy? Everything, and Worse to Come - (www.nytimes.com)
The market's worst is yet to come - (articles.moneycentral.msn.com)
It’s Not What You Take, But How You Take It - (www.ml-implode.com)
The Ponzi Smokin’ Gun - (www.ml-implode.com)
The Credit Crunch is Dead! Long Live the Credit Crunch! - (www.ml-implode.com)
The Trillion Dollar Bailout - (www.ml-implode.com)
Concerns rising that Fannie and Freddie could need bailout - (money.cnn.com)
Quelle Surprise! National Association of Realtors Says Many Housing Markets Doing Well - (www.ml-implode.com)

Crude Oil Reaches All-Time High Above $119 on Record Euro - (www.bloomberg.com)
U.S. Stocks Retreat on Earnings Concern, Record Oil Prices - (www.bloomberg.com)
Euro Surpasses $1.60 for First Time on ECB's Inflation Outlook - (www.bloomberg.com)
U.S. Existing Home Sales Fell in March; Prices Lower - (www.bloomberg.com)
Corporate earnings about to take a tumble - (www.financialweek.com)
California foreclosure "surge": Up 327% from '07 levels - (www.latimes.com)
California's Home-Mortgage Defaults More Than Double - (www.bloomberg.com)
Arts institutions feeling impact of ailing economy - (www.azcentral.com)
With gas hitting record highs, drivers feeling squeezed - (www.ap.com)
Renters can't escape housing foreclosure crisis - (www.usatoday.com)

Loan Losses Pose Threat to Banks - (online.wsj.com)
Why stocks go up when they shouldn't - (www.nypost.com)
So Far, So Good on Bailouts, but How Long Will They Last? - (online.wsj.com)
Prices slashed on Chrysler loan sales - (www.ft.com)
Most Troubled Mortgage Borrowers Without Plan, Report Finds - (www.washingtonpost.com)
Rise in secret stock trading - (www.financialweek.com)

Florida luxury home market shows signs of wear - (www.signonsandiego.com)
New rules propose added scrutiny for sovereign wealth fund transactions - (www.financialweek.com)
Saudis warn on oil capacity - (www.ft.com)
Art market shrugs off credit crunch - (www.ft.com)
Gannett profit declines 9% on weaker ad sales - (www.marketwatch.com)
National City Follows Wachovia, WaMu, Taps `Abundance' of Cash - (www.bloomberg.com)
Fannie Mae, Freddie Mac Warned on Accounting - (www.washingtonpost.com)
SunTrust Quarterly Profit Falls 45% on Provisions for Bad Loans - (www.bloomberg.com)
Bank of America to alter loan practices - (www.chicagotribune.com)
RBS to Sell $24 Billion in Shares After Markdowns - (www.bloomberg.com)
Triple-A Failure - (www.nytimes.com)
The new face of hunger - (www.economist.com)