Tuesday May 27 Housing and Economic stories

Top Stories:

LTCM's John Meriwether in trouble again - (www.ml-implode.com) - A decade on, it seems that “not much has been learnt”, said Roger Lowenstein, author of When Genius Failed: The Rise and Fall of Long-Term Capital Management. “The quote I read of Meriwether saying he was going to lower the risk was strikingly reminiscent. I think that’s what he said when he was backing out of LTCM.” ... like Bear Stearns, Meriwether blamed a “run on the bank” for LTCM’s crash.
Bank failures to surge in coming years - (www.marketwatch.com) - Only three banks have failed so far in 2008. But that number is set to surge as the credit crunch slows economic growth and hammers some lenders that grew too fast during the recent real-estate boom, experts say. The roots of today's banking crisis grew out of the boom and bust
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)
Housing: Why was Kudlow so wrong? - (www.ml-implode.com) – Why is anyone surprised that Kudlow and Cramer have been wrong?


Other Stories:

As Credit Tightens, the Auto Industry Feels the Pain - (www.nytimes.com) - Squeezed by the credit crunch and the softening economy, the American auto industry faces what may be its worst year in more than a decade.
Abandoned Houses Are Keeping Contractors Busy - (www.nytimes.com) - It can take months, even years, for some homes to wind through the foreclosure process, and decay sets in.

UBS Falls After Saying More Mortgage Losses Possible - (www.ml-implode.com)
Senior Bear Departures: Signs of Valuation Headaches for JP Morgan? - (www.ml-implode.com)

Prices soar for Memorial Day fixins' for barbecues - (www.usatoday.com)
British house prices continue fall - (www.marketwatch.com)
Japanese real estate firms seek big rent increases in central Tokyo - (www.iht.com)

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)

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)

Friday May 23 Housing and Economic stories

Top Stories:

Franklin Bank, SSB. Teetering On The Edge - (www.ml-implode.com) - We recently heard Houston-based Franklin Bank shut down wholesale lending operations, but now the entire company appears to be teetering on the brink of failure.
Foreclosure papers' deliverers can't keep up - (www.orlandosentinel.com) - Brent Browning, who delivers foreclosure papers in Osceola County for three different companies, said he is so busy he has been turning down work. Yet the former deputy sheriff also said he has been warned by his clients that the volume of default work is likely to increase sharply this summer.
Congresswoman Walks Away - (www.capitolweekly.net) – Not surprising that the idiots leading our country are clueless.
Congresswoman denies foreclosure report - (latimesblogs.latimes.com) – Let’s get more information on this story to see if she received any special deals or privileges.
Woman loses job, burns down house for money - (blogs.tampabay.com) – Hmmm, these homeowners really have no brains. Burning a house that is already in foreclosure process is pretty silly.
FDIC's Bair: Foreclosure Aid Is 'Train Wreck' - (blogs.wsj.com) – Yes, we all agree, but let’s not add onto the bailout please. Efforts to stem the record tide of U.S. foreclosures are a “train wreck,” hampered by a lack of resources and the continued deterioration of the real-estate market, a federal banking regulator said.
“There are more loan lines and I think servicers are doing more but it’s just not keeping pace,” Federal Deposit Insurance Corp. Chairman Sheila Bair told reporters following a speech on Amelia Island.
Kucinich: Neighborhoods Are Blameless ‘Victims’ in Subprime Crisis - (www.ml-implode.com) - The Ohio Democrat and former Cleveland mayor heard made the case that concerns about creating a moral hazard — or rewarding risky behavior — were countered by the fact that neighborhoods weren’t at fault for the impending foreclosure boom."
Pounding Continues As Fed Tightens Handcuffs - (www.ml-implode.com) - "As the Fed feeds liquidity out to the hinterlands via the TAF, it continues to punish the Primary Dealers (PD) by withdrawing the cash to pay for the TAF from the PD trading accounts."" The Treasury announced another week of pounding ahead as it plans to dump another mountain of new supply on the market next week.
New Zealand's $8.2 Billion Income Tax Cuts Spark First Deficit Since 2000 - (www.bloomberg.com)
Moody's Falls on "Ratings Error" Probe - (www.bloomberg.com) – Moody’s falls hard for 2nd straight day.
Derivatives Market Expands by 44% as Investors Seek Hedges, BIS Study Says - (www.bloomberg.com)
Senators Sharply Question Oil Officials - (www.nytimes.com) – Constituents need to sharply question senators and take them behind a shed and beat them as these clowns are more responsible for oil prices for many reasons.



Other Stories:

Top banks urge relaxed writedown rules - (www.ml-implode.com) - Bankers once again illustrate that it's good to be the king(s): The proposals on “fair value” accounting by the Institute of In...
FICO: The Model Is Dead. Long Live The Model. - (www.ml-implode.com) - ``The first thing my broker tells me when I’m yelling at him about another bad stock pick that he was unable to talk me out of i...
Why It's a Bad Time to Buy a House: High 'Real' Mortgage Rates, Record Inventories - (www.ml-implode.com) - "As bad as that sounds, the housing market is going to get worse, says Liz Ann Sonders, chief investment strategist at Charles S...
OFHEO: Home Prices Chalk Worst Ever Decline - (www.ml-implode.com)
Countrywide Buys Homeowner’s Silence Over Angelo Mozilo’s “Disgusting” Email - (www.ml-implode.com) - Welcome to the new way of putting muzzles on homeowners that can shed some light on Countrywide’s widely known practice of customer abuse. Fix their loan in record time, give them a deal they could have never have thought of in their wildest dreams and make them sign a confidentiality agreement.
More on the banking backdrop, they have never had so many loans - (www.ml-implode.com)
A self-serving non-solution to negative equity in America - (www.ml-implode.com)
The Sad Tale of Lewis Ranieri and Franklin Bancorp - (www.ml-implode.com)

Low Rates Fueled Bubble, But Can't Stop Bust - (Charles Hugh Smith at www.oftwominds.com)
Nation's Most and Least Affordable Housing Markets - (www.efinancedirectory.com)
Housing crisis hits the House - (www.politico.com)
The Risks of Rescuing Borrowers - (www.nytimes.com)
U.S. Stocks Drop on Inflation Caused By Fed Cuts - (www.bloomberg.com)
As Bank Seizures Swell, Investors Seek Elusive Prey - (www.realtytrac.com)
Analysis of Mortgage Crisis - (www.newleftreview.org)
Countrywide CEO Mozilo criticizes customer e-mail - (biz.yahoo.com)

Fed lowers growth forecast - (www.chicagotribune.com)
Fed's Forecast Grows Gloomier - (online.wsj.com)
Concerns From Fed Reverberate on Wall Street - (www.nytimes.com)
The Fed and the Mortgage 'Crisis' - (online.wsj.com)
Fed Appears Unlikely to Keep Cutting Rates - (www.washingtonpost.com)
Congress still loves farm aid - (www.nypost.com)
Study: State infrastructure needs billions to grow - (www.azcentral.com)
Consumers can't save the economy - (money.cnn.com)
Home loan failures rise for 37th straight month, extending record - (www.signonsandiego.com)

IEA to Slash Oil-Supply Estimate - (online.wsj.com)
U.S. Investment-Grade Corporate Bond Sales Surge to Monthly Record in May - (www.bloomberg.com)
Pimco's chief piles into mortgage debt - (www.ft.com)
Nuveen to restructure auction-rate debt issues - (www.chicagotribune.com)
Oil Rises Above $135 to Record After U.S. Stockpiles Unexpectedly Decline - (www.bloomberg.com)
Blame Wall Street for $135 Oil on Wrong-Way Betting - (www.bloomberg.com)
Cerberus Rues ResCap as Mortgages Put Brakes on Plans - (www.bloomberg.com)
SEC looks to subprime lessons - (www.ft.com)
CDS volumes remain high despite turmoil - (www.ft.com)

Small Businesses (and Their Customers) Feel Sting of Inflation - (www.nytimes.com)
American Airlines to charge for checked baggage - (www.latimes.com)
U.S. Casinos Stumble Over New Business Model in High-Stakes Macau Market - (online.wsj.com)
UBS Sells Stock at 31% Discount, Raising $15.6 Billion to Increase Capital - (www.bloomberg.com)
Ford abandons 2009 profitability goal - (www.latimes.com)
American, Cutting Back, Plans $15 Bag Fee - (www.nytimes.com)
Analyst Bove cuts Goldman, Lehman and Merrill to 'sell' - (www.financialweek.com)
Banks Continue to Stuff Loan Cushions - (www.thestreet.com)
Richemont warning for luxury sector - (www.ft.com)

ECB Board Member Weber Says Globalization May Be Major Inflation Driver - (www.bloomberg.com)
Trouble ahead for global house prices - (www.economist.com)
Hong Kong's Inflation Rate Accelerates to 5.4% on Food and Energy Prices - (www.bloomberg.com)
Asia to cut subsidies as oil hits $135 - (www.ft.com)
The Financial Furry Freak Brothers - (goldnews.bullionvault.com)

Thursday May 22 Housing and Economic stories

Top Stories:

Congresswoman Walks Away - (www.ml-implode.com) - "The story of the foreclosure of Long Beach Democrat Laura Richardson's Sacramento home is a tale of a real estate market gone s...
Mortgage Applications & Fundings Are Surging. But… - (www.ml-implode.com) - In a nutshell, all increased mortgage volume is great. But, when exotic interest only programs and high loan-to-value FHA programs make up the lion’s share of the volume, you have to be skeptical about the numbers and the quality of the business.
Mortgage Application Volume Sinks as Rates Rise - (www.ml-implode.com) - mortgage application volume fell 7.8 percent on a seasonally adjusted basis for the week ending May 16, according to the latest weekly survey from the Mortgage Bankers Association
Shortage fears push oil futures near $140 - (www.ft.com). Current price near $135/barrel but futures are pushing $140.
Oil Powers to Record, Above $135 as Supplies Fall - (www.cnbc.com)
Countrywide CEO Mozilo's E-mail Bumble Sparks Furor – (www.cnbc.com) – Yes, the tan-man we all love to hate ruining shareholder value and pissing off more customers. Let’s give him another $100M bonus.
Sen. Dodd: Housing Bill Not a Bailout - (www.cnbc.com). Yes, I am saving all Senator Dodd stories saying this is not a bailout so that when it comes out that taxpayers are covering this, we can go back to him and politely correct him.
Commodity collapse coming - (www.news.com.au) - The commodity boom may be turning into a bubble that could burst around the end of the year, according to a special report from Lehman Brothers in New York.
Soros warns global boom is over - (news.bbc.co.uk) - He warned the "financial bubble" of the last 25 years could be drawing to an end and the post World War II "super-boom" era could also be over.
He predicted a "more severe and longer" US slowdown than most people expect. And he said that the UK was worse-placed than America to weather the coming economic storm, because it had such a large financial sector and has had the biggest increase in house prices.
Fannie CEO sees steep house-price drop - (ap.google.com)
Soaring Foreclosure Numbers Mean More Prey for Vulture Funds - (www.sdbj.com)
American cuts flights as oil rises - (www.ft.com). American Airlines said it would eliminate flights, cut thousands of jobs and charge most passengers $15 to check a single piece of luggage, as surging oil prices exacerbated the crisis in the US airline industry
Former AIG chief could face SEC charges - (www.ft.com). Greenberg served with Wells notice. Hopefully the crooked ex-AIG CEO and smarmy rat will stop bothering the existing board (as he is the root cause of many of the problems). Hopefully, they will collect back the money he shuffled to his wife. And hopefully he will get what he deserves - jail time. Last week, a federal judge presiding over a criminal trial that led to convictions of former AIG and Gen Re executives said there was “sufficient evidence” to show that a conspiracy began with a phone call from Mr. Greenberg. Mr. Greenberg had not been previously charged by federal prosecutors or the SEC over the transactions that allegedly inflated AIG’s reserves by $500m and he has always denied any wrongdoing.
Has the Fed really flooded the world with dollars? - (blogs.telegraph.co.uk) - It reinforces my fear that we are heading into a deflationary crunch. No doubt the Fed, ECB, the Bank of England, et al, will ultimately flood the system with money and set off another asset bubble. We are not there yet. The professor warned that yields on 10-year Treasuries (now 3.79pc) have shot up so much on inflation fears since the Fed bail-out in March that the effect risks short-circuiting the whole monetary rescue. “They may find that they don’t benefit after all from cutting rates,” he said. Well, yes, this is the great fear. The Fed may now be trapped. The argument is that the US 10-year rate - set by market forces, and increasingly by the actions of Chinese and Mid-East governments - is the key price setter for the US housing market and corporate debt.
Analyst Meredith Whitney on U.S. banks - (www.businessweek.com) - Oppenheimer analyst Meredith Whitney believes the credit crisis will extend well into 2009, perhaps beyond. She sees three years of multi-billion dollar revenue reversals.
Moody’s launches review in wake of errors - (www.ft.com) - Charles Schumer urges SEC probe


Other Stories:

Crackdown on Foreclosed Kids? - (www.ml-implode.com)
US economy in ‘uncharted waters’ - (ww.ft.com)
US corporate property prices take hit - (www.ft.com)
Citigroup to close down branches in UK - (www.ml-implode.com) - Citigroup announced plans to extricate itself completely from new sub-prime lending in Britain, with the loss of up to 700 jobs,...
Home loan failures rise for 37th straight month, extending record - (www.ml-implode.com) - "Home loan failures in San Diego County continued to set new records in April, the 37th consecutive month of year-over-year incr...
A trying time to lead a bank - (www.mlive.com)
Hedge Funds in Swaps Face Peril With Rising Junk Bond Defaults - (www.bloomberg.com)
Mr Mortgage - ‘Short-Refinances’ Gaining Popularity.. - (www.ml-implode.com)
World Savings Option ARM Training Video - (www.ml-implode.com)
Delta Financial Execs Plan New Mortgage Venture - (www.ml-implode.com)
Impac Mortgage reports loss of $2B for 2007 - (www.ml-implode.com)

Government's 'numbers racket' is about to blow up in our faces - (www.marketwatch.com)
Ownership costs outpacing rental costs by as much as 300% - (www.brokeragentpro.com)
Foreclosures 4 in 10 SoCal house sales - (lansner.freedomblogging.com)
UBS $100 Billion Mortgage Wager Caused $24 Billion Loss - (www.bloomberg.com)
U.S. bank shares sink after Oppenheimer cuts outlook - (www.reuters.com)
60,000 second houses could be sold off in English slump - (www.guardian.co.uk)

U.S. Stocks Drop on Credit Concern, Producer Prices; Banks Fall - (www.bloomberg.com)
Minutes of Federal Open Market Committee, April 29-30, 2008 - (www.federalreserve.gov)
The Risks of Rescuing Borrowers - (www.nytimes.com)
AAA expects fewer Americans to travel over Memorial Day - (www.azcentral.com)
Wealthy consumers cut back on spending, sort of - (www.latimes.com)
Georgia Power bills to go up $2.93 for fuel costs - (www.ajc.com)
NY Times Still Does Not Understand the Housing Crash - (www.prospect.org)
Economic Tide Is Rising for Repo Man - (www.nytimes.com)
US and Canada Demographic Time Bomb - (Mish at globaleconomicanalyst.blogspot.com)Things Are Heating Up - (Mike Morgan at realestateandhousing2.blogspot.com)
Four Overlooked Houseownership Costs - (biz.yahoo.com)

Banks still tough on buyouts - (www.chicagotribune.com)
Why a Housing Bailout Won't Help - (online.wsj.com)
Are commodity traders bidding up food, fuel prices? - (www.latimes.com)
Oil for 2016 Delivery Nears $140 on Supply Concern - (www.bloomberg.com)
Plunge in US commercial property - (www.ft.com)

Target 1Q profit drops, cites higher costs - (www.chicagotribune.com)
Saks profit jumps, but misses expectations - (www.chicagotribune.com)
Less Shopping = Fewer Malls - (online.wsj.com)
Trouble Hid in the Hedges - (online.wsj.com)
Airlines’ Cuts Making Cities No-Fly Zones - (www.nytimes.com)
Shoppers Stick to Buying Only Basics, Retailers Say - (www.nytimes.com)
Banking's Bear Roars Again - (www.portfolio.com)
Customer satisfaction with airlines lowest since 2001 - (www.latimes.com)
Chrysler extends gasoline offer - (www.chicagotribune.com)
AIG Hits 10-yr. Low On Capital Woe - (www.chron.com)
Southern casinos feeling economic pinch - (www.ajc.com)
Local governments rethink municipal Wi-Fi initiatives - (www.chicagotribune.com)

BOE Voted 8-1, Defeating Blanchflower's Call for Cut - (www.bloomberg.com)
German Business Confidence Unexpectedly Increased in May, Ifo Survey Shows - (www.bloomberg.com)
U.K. Rentals See a Boom As House Purchases Cool - (online.wsj.com)
Tice Proves Every Bear Has Its Day With 9.5% Return as He Invokes `D' Word - (www.bloomberg.com)

Wednesday May 21 Housing and Economic stories

Top Stories:

Fannie CEO sees steep home-price drop - (www.ap.com) - Fannie Mae's CEO told shareholders Tuesday that the housing market is "about halfway through" its crisis and home prices could fall as much as 25 percent before the worst is over.
Overpaying For House Cripples Families - (www.eastvalleytribune.com) - In addition to dropping their asking price by $250,000 (now at $600,000), they've shelled out nearly $30,000 in landscaping, new kitchen countertops, a bathroom remodel and other improvements. They also offered a $10,000 bonus to the buyer's agent and $10,000 in closing costs, though they eliminated that incentive after the latest price cut. And at one point, they also tried lowering the price $1,000 a week.
Dodd, Shelby reach housing aid deal - (money.cnn.com) – According to these clowns (uh, key lawmakers): Taxpayers will not be on the hook if loans go bad. Ken comment: When government finally admits to a taxpayer bailout and begins forcing taxpayers to pay, remember these 2 names when considering people to blame.
As houses foreclose in U.S., squatters move in - (www.reuters.com) - Squatting is on the rise across the United States as foreclosures surge, eviction notices mount and homes go unsold for months, complicating the worst U.S. housing slump in a quarter century and forcing real-estate brokers to enlist the help of law enforcement and courts to sell empty houses. In some regions, squatting is taking on new twists to include real-estate scams in which thieves "rent out" abandoned homes they don't own. Others involve "professional squatters" who move from one abandoned home to another posing as tenants who seek cash from banks as a condition to leave the premises -- a process known by real-estate brokers as "cash for key."
Banks Falsify Income Statements - (www.bloomberg.com) - Banks and securities firms, reeling from record losses resulting from the collapse of the mortgage securities market, are failing to acknowledge in their income statements at least $35 billion of additional writedowns included in their balance sheets, regulatory filings show. Citigroup Inc. subtracted $2 billion from equity for the declining value of home-loan bonds in its quarterly report to the Securities and Exchange Commission on May 2 without mentioning the deduction in the earnings statement or conference call with investors that followed. ING Groep NV placed 3.6 billion euros ($5.6 billion) of negative valuations in its capital account, while disclosing only an 80 million-euro depletion to income.
Jevic Transportation shutting down - (www.philly.com) - The trucking firm Jevic Transportation Inc., of Delanco, announced today that it was ceasing operations after 27 years, a victim of high diesel and insurance costs as well as the tightened economy. The 1,500-employee national firm, with about 1,000 in Burlington County, making it one of the county's largest employers, said it would deliver all freight already within its system before closing entirely.
Citigroup Hedge-Fund Loss Weighs on Three Banks - (online.wsj.com) – Problems at Citi far from over, as they are still causing havoc across the industry.
Fears of longer credit crisis set to hit Wall St - (www.ft.com) - "We believe the real harrowing days of the credit crisis are still in front of us and will prove more widespread in effect than anything yet seen," Ms Whitney said.
Moody's error gave top ratings to debt products - (www.ft.com)
Accounting Errors at Franklin Bank Corp. Draw SEC’s Attention - (www.ml-implode.com) - "...,the audit found that Fanklin did not properly account for certain single family mortgage loan modification programs develop...
A Real Countrywide Email From Angelo Mozilo - Calls Homeowner Disgusting - (www.ml-implode.com)
Gen X, Gen Y, debt, and savings - (www.ml-implode.com) - Generally defined as those individuals now 27 to 43 years old, Gen Xers are far better represented by the millions of 40-year old spendthrifts who are just now realizing that their home isn't going to do all the heavy lifting for their retirement savings. Consumer debt is one of the main reasons. Nine out of 10 consumers in their 30s are in debt, compared with 76% of those in their 20s, according to the Federal Reserve's Survey of Consumer Finances. In a recent Charles Schwab study of more than 2,000 Gen Xers nationwide, 45% of respondents said they had too much debt to think about saving.


Other Stories:

NexCen shares plummet on going-concern warning - (www.ml-implode.com) - Consumer discretionary buyout firm NexCen Brands swoons. This was entirely predictable. Their last acquisition was last fall. ...
Thornburg to Announce Substantial First Quarter Loss - (www.ml-implode.com) - Thornburg Mortgage announced Monday that it will file its delayed first quarter earnings by June 2, with the company expecting a...
Mom forced to live in car with dogs - (www.ml-implode.com)
SEC Probes Franklin Bank; CEO Replaced - (www.ml-implode.com)
Avoiding financing a big black hole - (www.ml-implode.com)
NYT Editorial Promotes Bailout - (optionarmageddon.blogspot.com)
Low-Income Renters to Pay for Housing Bailout - (www.truthout.org)
No Bottom in Sight, Says NYU Prof - (finance.yahoo.com)
Far From Normal - (jameshowardkunstler.typepad.com)
Weak economy even if housing improves - (news.yahoo.com)
Housing Correction In U.S. Spreads Around Globe - (query.nytimes.com)
Foreclosure Buyers Frustrated By Banks - (www.9news.com)
Post-Subprime Economy Means Subpar Growth - (www.bloomberg.com)
Teeing Up the Next Mortgage Bust - (nytimes.com)
Real Estate Alarm in Taiwan - (au.news.yahoo.com)
Senator estimates "$1.4 quadrillion" loss - (www.denninger.net)
Gambling On Housing - (sbhousingbubble.blogspot.com)

Oil Rises to a Record After Pickens Says Prices May Reach $150 - (www.bloomberg.com)
U.S. Stocks Drop on Credit Concern, Producer Prices; Banks Fall - (www.bloomberg.com)
Dollar Falls on Oil Surge, Speculation ECB Will Keep Rates High - (www.bloomberg.com)

Producer Prices in U.S. Excluding Food, Energy Increase More Than Forecast - (www.bloomberg.com)
Only six S&P 500 companies have overfunded retiree health benefit plans - (www.financialweek.com)
Economic Tide Is Rising for Repo Man - (www.nytimes.com)
Bleak picture for economy - (www.chicagotribune.com)
Soros Sees Recessions Looming as `Acute Phase' of Crisis Passes - (www.bloomberg.com)
Food prices forecast to rise 5% in 2008 - (www.latimes.com)
Government Again Raises Forecast for Food Prices - (online.wsj.com)

Senate Leaders Agree on Housing Aid - (www.nytimes.com)
Buffett says effects of crisis ‘far from over’ - (www.ft.com)
At the luxury end, home prices are falling - (www.latimes.com)
CPDOs expose ratings flaw at Moody's - (www.ft.com)
Americans worry about funding a long retirement - (www.chicagotribune.com)
Convertible bond issuance hits year high - (www.ft.com)

Auto Slump May Have Broad Reach - (online.wsj.com)
Airlines now get lower ratings than the IRS, survey finds - (www.financialweek.com)
Lowe's profit drops 18% on housing slump - (www.latimes.com)
Campbell's Cools - (www.forbes.com)
Home Depot reports 1Q profit drop - (www.startribune.com)
New Cellphone Purchases Decline in U.S. - (online.wsj.com)
AIG Increases Plan to Raise Capital to $20 Billion - (www.bloomberg.com)

Hard times starting to hit euro area - (www.startribune.com)
Australian Central Bank Debated Rate Increase in May - (www.bloomberg.com)
German Investor Confidence Unexpectedly Fell in May - (www.bloomberg.com)
Asia exporters find ways round US storm - (www.ft.com)
George Soros: worst to come for UK economy - (www.telegraph.co.uk)
Doubt cast on Bank’s inflation credentials - (www.ft.com)