Thursday June 26 Housing and Economic stories

Top Stories:

Vital Part of Housing Bill Is Brainchild of Banks - (www.washingtonpost.com) A key provision of the housing bill now awaiting action in the Senate -- and widely touted as offering a lifeline to distressed homeowners -- was initially suggested to Congress by lobbyists for major banks facing their own huge losses from the subprime mortgage crisis, according to congressional staff members and bank officials. Credit Suisse, a large investment bank heavily invested in mortgage-backed securities, proposed allowing hundreds of thousands of homeowners to refinance their mortgages with lower-cost government-insured loans, relieving financial institutions of the troubled debt. After the bank proposed this to Congress in January, it became known as the "Credit Suisse plan" among congressional staffers and lobbyists. It later formed the basis of housing provisions in both the House and Senate.
Bank of America, which is acquiring Countrywide Financial, the country's largest mortgage lender, followed with a similar and more detailed proposal, principal negotiators on the legislation said. In approaching congressional aides, the lobbyists suggested that banks take less than full payment for the distressed loans on their books. But the measures would allow financial institutions to get cash out of foreclosed properties that would otherwise sit on their books as dead weight.
High Medicare Costs, Courtesy of Congress - (www.nytimes.com) On Wal-Mart’s Web site, you can buy a walker for $59.92. It is called the Carex Explorer, and it’s a typical walker: a few feet high, with four metal poles extending to the ground. The Explorer is one of the walkers covered by Medicare. But Medicare and its beneficiaries aren’t paying $59.92 for the Explorer or any similar walker. In fact, they’re not paying anything close to it. They are paying about $110. For years, Congress has set the price for walkers and various medical equipment, and it has consistently set them well above the market rate, effectively handing out a few hundred million dollars of corporate welfare every year to the equipment makers.
Calif. attorney general sues Countrywide Financial - (www.ml-implode.com) – First Illinois, now California. Funny how CA AG did not sue until days before the merger with BofA. When Countrywide was a CA corporation, CA was fine with all the lending practices. Now that they are ready to move HQ out to the East Coast, time to sue. "Countrywide Financial Corp. is accused of using misleading advertising and other unfair business practices to trick borrowers i...
Countrywide's Licenses Revoked By State of Washington - (www.ml-implode.com) - Gov. Chris Gregoire says the state is pulling the license of Countrywide Home Loans to write loans in Washington and that invest...
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.
Illinois attorney general says she'll sue Countrywide Financial - (www.latimes.com)
Chrysler Taps $2 Billion Line of Credit - (online.wsj.com) Chrysler LLC tapped a $2 billion credit line from its owners, Cerberus Capital Management LP and Daimler AG, to bolster the auto maker's liquidity amid a painful downturn in U.S. sales that is stretching its resources.
California Police Gone Wild: Charity carnival scrapped because of police fees – (www.insidebayarea.com/argus). First Vallejo police/fire department cause Vallejo to file for bankruptcy. Now Police departments are padding their pay by mandating police coverage (rather than private security) at town events. But a carnival fundraiser the group had planned to begin Thursday in Fremont has fizzled because of high police fees, organizers said. The carnival was set to start at the Hub shopping center, but league Executive Director Shirley Sisk said the hoped-for take of up to $30,000 through the weekend was offset by an expected $21,000 bill from Fremont police for security. Gorman said his understanding is that the police department wanted seven officers, two gang task force members and a dispatcher at the Hub event at time-and-a-half pay rather than private security that Butler typically hires at a fraction of the cost.
The Market Created the Money, Not the State - (www.brookesnews.com) – Of course, this conservative think-tank would never blame the Republican Admin or the Fed for creating this credit mess due to lowering interest rates to 1%.
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.
CIBC likely to take big Q3 writedown - (www.reuters.com)
GMAC's $60 Billion Deal Loses Confidence as Mortgages - (www.bloomberg.com)
Rebate checks diverted to pay $2B in debts - (www.usatoday.com) About $2 billion in economic stimulus rebate checks are being confiscated to pay overdue bills for child support, student loans and back taxes, the government says. So far, 1.8 million rebate checks have been intercepted by Treasury Department computers showing that individuals owe money to federal or state governments.


Other Stories:

Profits seen off more than 10 percent - (www.bloomberg.com)
Consumer confidence fell sharply in June - (www.latimes.com)
Chapman University forecasters say U.S. is in recession - (www.latimes.com)
Home Not-So-Sweet Home - (www.nytimes.com)
Communities suffer as foreclosure rate rises - (www.msnbc.msn.com)

Phoenix Commercial Real Estate Financier Files Bankruptcy - (www.ml-implode.com) - Mortgages Ltd. filed for Chapter 11 bankruptcy Monday night, under pressure from a borrower that earlier had filed a petition ...
$200 oil? - (www.ml-implode.com) - "If Israel bombs Iran, $200 oil is a distinct possibility. Both look more likely given recent developments."

You Might Want To Think Twice Before Gutting Your Preforeclosure - (www.ml-implode.com) - "We’ve heard tale after tale of bitter homeowners stripping their homes in foreclosure, prior to losing the home. Now they migh...
American Express Says Late Payments Rising Faster Than Expected - (www.ml-implode.com) - ``Business conditions continue to weaken in the U.S. and so far this month we have seen credit indicators deteriorate beyond our...
Mr Mortgage Update: Ultimate Fannie/Freddie ‘Con’ Job - (www.ml-implode.com) - Now, the big guns have come out to weigh in. Today, Bloomberg released a detailed story on just how little demand there is for t...
Mark to Misery in the cash equivalent fund biz - (www.ml-implode.com) - "A bond fund closed down yesterday and it brings up another interesting dilemma that few people if anyone wants to address, incl...
Case-Shiller home prices - (www.ml-implode.com)
Taxpayers Helping Bank Of America Finance Countrwide Deal - (www.ml-implode.com)
Mortgage Rates Continue to Set New 2008 Records, Applications Fall - (www.ml-implode.com)
Man with a Tan Needs a Plan - (www.ml-implode.com)
False Housing Turnaround Expectations - (www.ml-implode.com)
Senate ethics committee proposes Senators disclose their mortgage details, may now be investigating Dodd and Conrad - (www.ml-implode.com)
Countrywide shareholders set to vote on BofA takeover - (www.ml-implode.com)
Update: Vanguard operations illegal? - (www.ml-implode.com)
Politico Gets Mortgage Answers from Senators - (www.ml-implode.com)
Senate seen approving [BofA/CFC] rescue bill - (www.ml-implode.com)

Oil Declines After Supplies Rise for First Time in Six Weeks - (www.bloomberg.com)
Treasuries Decline; Fed May Shift Focus to Fighting Inflation - (www.bloomberg.com)
Gold Futures Decline on U.S. Inflation Outlook; Silver Steady - (www.bloomberg.com)
U.S. Stocks Advance Ahead of Fed; JPMorgan, Jabil Circuit Climb - (www.bloomberg.com)

Durable Goods Orders in U.S. Are Unchanged; Ex-Transportion Decline 0.9% - (www.bloomberg.com)
Consumer confidence fell sharply in June - (www.latimes.com)
U.S. Economy: Home Sales Fall, Durable Goods Orders Stagnate - (www.bloomberg.com)
Stagflation fears vexing for Bernanke - (www.chicagotribune.com)
Fed Vacancies Pose Challenge - (online.wsj.com)
Economist forecasts softer landing - (www.ft.com)
Rethinking the Country Life as Energy Costs Rise - (www.nytimes.com)
Chapman University forecasters say U.S. is in recession - (www.latimes.com)
Bernanke May Halt Rate Cuts, Shift Focus to Inflation Concern - (www.bloomberg.com)
Whatever Happened To Inflation Targets? - (www.forbes.com)
Approval Is Near for Bill to Help U.S. Homeowners - (www.nytimes.com)
Hedge Funds Fear Backlash From Congress - (online.wsj.com)
Speculating on why oil, gasoline prices are soaring - (www.latimes.com)
Short Interest Increases on the Nasdaq - (online.wsj.com)

Oil May Cost Jet Makers Orders - (online.wsj.com)
Illinois to Sue Countrywide - (www.nytimes.com)
Barclays to Raise $8.9 Billion to Shore Up Capital - (www.bloomberg.com)
Pump pain hits independents - (www.signonsandiego.com)
Lowe's Weighs Increases - (online.wsj.com)
Eurozone growth fears as inflation bites - (www.ft.com)
Trichet: ECB determined to combat inflation - (www.marketwatch.com)
New Zealand Consumer Confidence Falls to 17-Year Low - (www.bloomberg.com)

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)

Monday June 23 Housing and Economic stories

Top Stories:

BofA, Perhaps Countrywide Wrote Dodd-Shelby Bailout - (www.ml-implode.com) - The National Review Online has obtained an internal 61 page document on Bank of America letterhead dated March 11th that matches the Dodd-Shelby Bill almost identically. First, we find out that Dodd is a Countrywide "insider" but is so ignorant he didn't read his loan papers to know he got a "deal." Now, we find out that BofA, who is supposed to be closing on their Countrywide purchase in the next few months, wrote the Bill for him. If this Bill passes, BofA's Countrywide buyout is much more palatable and the $60+ billion in toxic loans are mostly covered.
White House threatens to veto secret bank bailout - (www.usatoday.com)
Vin Baker -- Foreclosure on Former NBA Star's Mansion - (www.ml-implode.com) - In this latest installment of "Celebrity Foreclosures" we hear of former NBA star Vin Baker's ongoing financial woes.
Banks Trimming Limits for Many on Credit Cards - (www.nytimes.com) - After fostering the explosive growth of consumer debt in recent years, financial companies are reducing the credit limits on cards held by millions of Americans, often without warning.
Banks that issue cards like Visa and MasterCard, as well as the American Express Company, are cutting the limits for customers who have run up big debts, live in areas that have been hit hard by the housing crisis or work for themselves in troubled industries.
Ford and GM financial arms may incur writedowns: Lehman - (www.reuters.com) Ford Motor Co's (F.N: Quote, Profile, Research, Stock Buzz) and General Motors Corp's (GM.N: Quote, Profile, Research, Stock Buzz) financial arms may need to write down $1.1 billion and $1.5 billion, respectively, said a Lehman Brothers analyst, who expects U.S. auto credit to be pressured by a weakening used-car market.
MBIA Says It May Be Forced to Make $7.4 Billion in Payments - (www.bloomberg.com)
Economy has some states tangled in 'dire' financial snares - (www.usatoday.com) The nation's weak economy has landed some big states in a desperate struggle to balance their budgets before July 1 when their new fiscal years begin.
Arizona, California, New Jersey, Nevada and Pennsylvania are among states that must slash spending or raise taxes to straighten out their finances. Nevada Gov. Jim Gibbons, a Republican, plans to call a special session of the Legislature next week to find a last-minute solution to a budget shortfall approaching $1 billion. California is outspending revenue by $1 billion a month yet is nowhere near settling on a budget due in 10 days. Republican Gov. Arnold Schwarzenegger and the Democratic Legislature are far apart on what to do.
White House veto threat to housing law - (www.ft.com) The White House said it approved of certain provisions, such as a plan to create a new, stricter regulator for Fannie Mae (NYSE:FNM) and Freddie Mac, the government-sponsored mortgage companies.
But it was opposed to other elements such as a $4bn allowance for local governments to buy foreclosed properties and the diversion of funds from Fannie Mae and Freddie Mac to pay for up to $300bn in guarantees for mortgages refinanced to reflect lower home values.
Evergreen Liquidating Ultra-Short Fund After 18% Drop - (www.ml-implode.com) Evergreen Investments, the money- management unit of Wachovia Corp., plans to liquidate a $403 million fund with almost three quarters of its assets in mortgage-backed securities after it fell 18 percent this month."
FBI holds 406 for mortgage fraud - (news.bbc.co.uk)
But only 2 charged on Wall Street. Funny... - (biz.yahoo.com)
Fallout From Bad Loans Rocks Regional Banks - (www.nytimes.com)


Other Stories:

Renters sitting prettier amid house-market upheaval - (www.latimes.com)
Hundreds swept up in mortgage fraud arrests - (biz.yahoo.com)
Ex-Bear Stearns Managers Arrested on Fraud Charges - (www.nysun.com)
Banks Closed Till Further Notice - (Mike Morgan at realestateandhousing2.blogspot.com)

Big Oil's Iraq Payoff: Exxon Mobil, Shell, Total and BP � the original partners in the Iraq Petroleum Company � are in talks for no-bid contracts to service Iraq's largest fields - (www.nytimes.com)
FISA Bill Eviscerates the Fourth Amendment - (www.rawstory.com)
Senate Housing Bill Requires eBay, Amazon, Google, and All Credit Card Companies to Report Transactions to the Government - (www.freedomworks.org)
Midwest Flooding will Inflate Grocery Bills Across the Board - (www.desmoinesregister.com)
Rising mortgage rates add to housing woes - (news.yahoo.com)
Median house price in California drops 30% in May - (www.latimes.com)
SF Bay Area house prices fall by 22% - (www.dailynews.com)
Ex Bear Stearns Managers Indicted for Fraud - (www.bloomberg.com)
Central Bank Has Lost Control of Credit Crisis - (www.dailyreckoning.com.au)
Wealthy Investors Shift Funds From Global Banks to Reduce Risks - (bloomberg.com)
Economist slams government targets on house ownership - (www.building.co.uk)
Killing the Comps - (www.viewfromsiliconvalley.com)
D.C. Region's Foreclosure Rate Soars - (www.washingtonpost.com)

S&P Slashes BofA to a Sell - Thanks Countrywide! - (www.ml-implode.com) - S&P slashes BofA to a sell reducing their price target to $24. They cite “worries over the mortgage portfolio the bank will inhe...
Foreclosure Tour Hits Manhattan - (www.ml-implode.com) - Foreclosure Hits Everywhere- a video
Zero Down, Zero Closing– Restrictions - (www.ml-implode.com) - " "I can’t believe these zero down, zero closing things are still around",Like some of those cheap airline fares however, this p...
Rescap Update: Consolidation/Layoffs at Homecomings - (www.ml-implode.com)
Fremont Files BK to Facilitate Acquisition by CapitalSource - (uk.reuters.com) Fremont General Corp FMNT.PK, a U.S. financial services holding company, said on Wednesday it had filed for bankruptcy protection in order to facilitate the sale of assets of its thrift unit. What remains of Freemont Investment & Loan will become CapitalSource Bank
Commercial Real Estate Bust - (www.ml-implode.com)
Chris Thornberg: Possible 50% House Price Declines in SoCal - (www.ml-implode.com)
Fed's tough inflation talk hits housing - (biz.yahoo.com)
The Entire Subprime Market Is Toast - (blogs.wsj.com)
Screams For More Fed Authority Get Louder - (Mish at globaleconomicanalysis.blogspot.com)
BankUnited imploding - (optionarmageddon.ml-implode.com)
CapitalSource Takes it to the Bank - (www.ml-implode.com)
Renters sitting prettier amid house-market upheaval - (www.ml-implode.com)
Down 13 Points, 4:00 to Go - (www.ml-implode.com)
Quicken Loans Cuts 250 Jobs - (www.ml-implode.com)

Travelers Shift to Rail as Cost of Fuel Rises - (www.nytimes.com)
Price Increases Put Pressure on the Fed - (www.nytimes.com)
New Evidence of Inflation Vexes Central Banks - (online.wsj.com)
States Feel the Pinch From U.S. Slowdown - (online.wsj.com)
California, Florida Had Biggest Job Losses in May, Labor Says - (www.bloomberg.com)
California's unemployment rate rises to 6.8 pct - (www.businessweek.com)
In weak economy, forgoing $4 lattes for home brews - (www.chicagotribune.com)
White House: Fed needs new powers - (www.philly.com)
States spending plummets as revenue comes up short - (www.signonsandiego.com) Spending by states in the coming fiscal year will plummet as revenues continue to come up short and expenses like health care and employee pensions continue to mount, according to a report released Thursday.
Americans reduce driving 1.4 billion miles - (www.startribune.com)

Why Is Oil So High? Pick a View - (www.nytimes.com)
Oil Summit to Take on Speculators - (online.wsj.com)
Bond Insurers Inflict Further Pain on the Market - (online.wsj.com)
FBI eyes big business in mortgage fraud probe - (www.ft.com)
A Question of Value - (www.nytimes.com)
Short Selling on NYSE Sets Record - (online.wsj.com)
Hedge fund launches at eight-year low - (www.ft.com)
CBOE seat goes for record $3.3 million - (www.chicagotribune.com)


Ford Delays New Pickup and Reduces Production - (www.nytimes.com)
GM, Ford, Chrysler Credit Ratings May Be Cut by S&P - (www.bloomberg.com) S&P placed the carmakers' credit ratings, already five levels below investment grade, on CreditWatch negative, according to a statement today. New York-based S&P, a unit of McGraw-Hill Cos., said it may also downgrade their financing arms. While the carmakers will be able to pay their debts this year, their cash may shrink to ``undesirable levels'' by the end of 2009, S&P said.
Citi warns of further large writedowns - (www.ft.com)
Circuit City posts wider fiscal first-quarter loss - (www.latimes.com)
GM to halt major overhaul of pickups, SUVs - (www.signonsandiego.com)
Bear Stearns Fund Prosecutors Reveal `Lot of Evidence' of Fraud - (www.bloomberg.com)
High Fuel Costs Are Squeezing Low Air Fares - (www.nytimes.com)
United, Continental ally to fight fuel costs - (www.chicagotribune.com)
IKEA feels impact of housing slowdown - (www.chicagotribune.com)

Inflation and protests create economic storm - (www.ft.com)
India, China Face Accelerating Inflation, Higher Rates on Fuel - (www.bloomberg.com)
China to raise fuel, electricity prices; global oil market takes notice - (www.latimes.com)
India's inflation jumps to 13-year high - (www.ap.com)


Day of the dollar: A global connection - (www.latimes.com)
The Saga of Bear's Fund Chiefs - (online.wsj.com)

Friday June 6 Housing and Economic stories

Top Stories:

Holyfield's Estate Under Foreclosure - (www.11alive.com) - A legal notice that appeared in a local newspaper showed his Fayette County estate is under foreclosure. The home worth an estimated $10 million is set to be auctioned by a bank on July 1. The mother of one of Holyfield's nine children said he has missed two child-support payments. Toi Irvin, who lives in Clayton County, filed a petition for contempt in Fayette County Superior Court on behalf of her 10-year-old son. Irvin said she was told by Holyfield's representatives not to expect the payment for May and June totaling $6,000.
Ed McMahon Loses Home - (and Blames Britney Spears) - (www.clusterstock.com) - "In the midst of trying to sell this property, there were a lot of distractions," Davis said, citing paparazzi who have converged around the nearby home of Britney Spears. "When we were trying to sell the house one time, there were about 100 paparazzi there," he said. Where's that mortgage bailout when you need it?
Home foreclosures set record in first quarter - (www.ml-implode.com) - "Home foreclosures and late payments set records over the first three months of the year and are expected to keep rising, stark signs of the housing crisis' mounting damage to homeowners and the economy. The latest snapshot of the mortgage market, released Thursday, showed that the proportion of mortgages that fell into foreclosure soared to 0.99 percent in the January-through-March period. That surpassed the previous high of 0.83 percent over the last three months in 2007.
Luxury houses in Napa Valley falling into foreclosure - (www.latimes.com) - Napa County saw 112 homes repossessed in the first quarter, up from 23 a year earlier, according to DataQuick Information Systems. Most of those foreclosures have been in lower-priced areas, where new-home construction and sub-prime lending were widespread during the housing boom. But the top end is now starting to tumble.
Builder sees 'depression' in housing market - (money.cnn.com) - The chief executive of Toll Brothers Inc., the nation's largest luxury-home builder, said Wednesday the housing industry is in a "depression" and any recovery could be two or three years away.
$5 Trillion Hidden Off Bank Balance Sheets - (Mish at globaleconomicanalysis.blogspot.com) The absurdity is not $5 trillion coming back on bank balance sheets. Rather the absurdity is with accounting rules that let banks hold this much stuff off balance sheets in the first place. It makes a mockery of stated leverage, value at risk, and capitalization ratios. Banks claim to be well capitalized but the ratio is a mere 6% and that 6% does not include the effects of hiding $5 trillion off balance sheets.
Jeff Lacker, Suddenly Uncomfortable With These Fed Lending Facility Things - (www.ml-implode.com) - Richmond Fed President Jeffrey Lacker, in a speech — and later, an interview with the Wall Street Journal’s Greg Ip — says the acronym soup the Fed has created (TSLF, TAF, et al) to combat the credit crisis is distorting asset values and encouraging risky behavior. In essence, he has thrown the “moral hazard” flag on the various creative efforts undertaken by Mr. Bernanke & Co. to help markets that are frozen.''
Tax Those Vacant Properties Away! - (www.ml-implode.com) - The D.C. Council voted Tuesday to double the tax rate on vacant properties and make permanent some of the tighter enforcement rules the D.C. Department of Consumer and Regulatory Affairs has been practicing since early last year. Starting Oct. 1, the vacant property rate will be $10 per $100 of assessed value, up from $5, once approved by D.C. Mayor Adrian Fenty and Congress. The new rate is more than five times the $1.85 charged to the majority of commercial properties and the 85 cents charged for residential properties.
Countrywide’s Mozilo Hushes Homeowner With an Unaffordable Loan Modification - (www.ml-implode.com) - it is interesting that Mr. Dan Bailey was given a pretty decent loan modification. But what was VERY interesting was the fact that Dan still can’t afford the loan offered and gave to him by Countrywide.



Other Stories:

Fixed Mortgage Rates Hold Steady; Adjustable Rates Fall Sharply - (www.ml-implode.com) - "During a week when mortgage applications took a nose dive, average mortgage rates tended to hold tight as inflation concerns do...
Toll Bros. CEO: Housing in 'depression'; recovery years away - (www.ml-implode.com) - The chief executive of Toll Brothers Inc., the nation's largest luxury-home builder, said Wednesday that the housing industry i...
Home Equity Loans Losing Value - (www.ml-implode.com)
REO Tech Provider Sees Historic Growth as Bank-Owned Properties Swell - (www.ml-implode.com)
BofA's Ken Lewis moving forward with Countrywide Toxic Mortgage - (www.ml-implode.com)
Court OKs Fieldstone Mortgage Chapter 11 BK plan - (www.ml-implode.com)
Subprime Debacle May Spark 2-Year Credit Crisis - (www.ml-implode.com)
Fannie Mae and Freddie Mac Conspire to Put Real Estate Investors In Harm's Way... - (www.ml-implode.com)

Mortgaging America: America For Sale - (www.latimes.com)Lawrence Lindsay: It Is Only Going to Get Worse - (www.aei.org)Return of the Credit Crisis: Did It Ever Leave? - (www.financialsense.com)Wall Street to Shed Up To 25,000 Jobs - (www.thestar.com)Airline Industry Faces 'Worst Crisis Since 9/11' - (www.marketwatch.com)

Bernanke "warns" of danger of weak dollar - (www.guardian.co.uk)
Downsizing the American house - (money.cnn.com)
Subprime debacle may spark 2-year credit recession - (news.yahoo.com)
Prices are falling. Wait. - (patrick.net)
MBIA, Ambac Credit Ratings Under Threat - (www.bloomberg.com)
Sliced, Diced Mortgages More Likely to Default - (www.bloomberg.com)
Buying debt at deep discount - (www.dailybusinessreview.com)
MBIA, Ambac Hammered on News of Likely Downgrades - (www.housingwire.com)
In South Florida, Eviction Spares Few - (www.nytimes.com)
The Golden Collapse - (www.reason.com)

Treasuries Decline as Policy Makers Stoke Inflation Concern - (www.bloomberg.com)
Oil Rebounds From a 3-Week Low After Dollar Drops Against Euro - (www.bloomberg.com)
Euro Rises After Trichet Says July Rate Increase Is `Possible' - (www.bloomberg.com)
U.S. Stocks Rise Most in Month on Retail Sales, Jobless Claims - (www.bloomberg.com)

Lacker Says Fed Loans to Wall Street Risk More Crises - (www.bloomberg.com)
Even with bad economy, job number could be good - (www.nypost.com)
Bernanke to Grads: No Repeat of '70s - (www.washingtonpost.com)
Summer airfares double, triple, quadruple - (www.usatoday.com)
Jobless claims show unexpected improvement - (www.ap.com)
Atlanta may charge street vendors rent - (www.ajc.com)
Large lot inventory hangs over Tuscon market - (www.azbiz.com)
Airfares from Bush Intercontinental leaping skyward - (www.chron.com)

S&P in warning over leveraged loans - (www.ft.com)
Food Is Gold, and Investors Pour Billions Into Farming - (www.nytimes.com)
As layoffs bite Wall St, New York real estate hit - (www.ap.com)
Number of Wall Street IPOs pulled - (www.ft.com)
Small businesses turn to alternative lenders - (www.dallasnews.com)
Ed McMahon fights foreclosure on Beverly Hills home - (www.reuters.com)
Santa Maria house bought with no money down goes into foreclosure - (www.latimes.com)

MBIA, Ambac May Quit Aaa Battle on Moody's Likely Cut - (www.bloomberg.com)
Parts suppliers crushed by auto plant closings, cuts - (www.chicagotribune.com)
Chrysler may be next to announce production cuts - (www.chicagotribune.com)
Betting against Lehman at record levels - (www.ft.com)
Detroit wakes up to need for new vehicle mix - (www.ft.com)
Neiman Marcus plans to add discounts - (www.dallasnews.com)
Fidelity in new round of layoffs - (www.boston.com)
Electric Retailer's Default Pushes Texas Into Action - (online.wsj.com)
More fliers are cashing in their miles - (www.startribune.com)
Continental to cut 3,000 jobs, slash domestic flights - (www.chron.com)
Airlines raise nonstop fares sharply for summer - (www.azcentral.com)

Upturn in costs fuels higher pay deals - (www.ft.com)
ECB, Bank of England leave key rates unchanged - (www.ap.com)
Britain faces deepest slump since 1990s - (www.telegraph.co.uk)
Producers lose taste for going overseas - (www.ft.com)
U.K. House Prices Decline Most in 15 Years, HBOS Says - (www.bloomberg.com)
Indonesia, Philippines Raise Rates to Fight Inflation - (www.bloomberg.com)
Russian Inflation Accelerated to 15.1% in May on Food - (www.bloomberg.com)
Fuel price rise may only power inflation - (www.ft.com)
China's trade surplus 'to shrink' for first time in five years - (news.yahoo.com/s/afp)
Bollard Says New Zealand May Cut Interest Rate; Currency Slumps - (www.bloomberg.com)
Time to Put Investment Banking Back in Its Box: Mark Gilbert - (www.bloomberg.com)
Climate change will add to food, utility bills - (www.reuters.com)