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)