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)

Tuesday June 24 Housing and Economic stories

Top Stories:

Vacant houses a big, new headache for police - (www.ajc.com)
Desperate Condo Company Unwraps Plan For Clothing-Optional Pool - (www.tbo.com) Swimmers will have the option of wearing nothing at all at the Arbors at Branch Creek, a complex of 390 homes that landed on the idea to help move units in a down market. One pool is being set aside for nude swimmers, sunbathers and hot tubbers, said Christine Pirkle, director of sales with the Web site for the project's developers.
It’s All Unravelling - Bond Insurers Beg Banks for $125 Billion “Forgiveness” - (www.ml-implode.com) – This is a huge story. This desperate act comes as reports are surfacing that the public mutual fund universe has not been truthful about their structured mortgage debt marks. Sources say that most mutual fund managers have their MBS holdings mis-priced, which puts the public at significant risk. The job that structured mortgage debt did on hedge funds and banks has been bad, but a mark-to-market across the public mutual fund universe could be worse because it larger and directly effects Ma and Pa America
Brokers threatened by run on shadow bank system - (www.marketwatch.com) A network of lenders, brokers and opaque financing vehicles outside traditional banking that ballooned during the bull market now is under siege as regulators threaten a crackdown on the so-called shadow banking system.
U.S. banks may need $65 bln new capital - (www.boston.com) .S. banks may need to raise $65 billion of additional capital to cope with mounting losses from a global credit crisis that will not peak until 2009, Goldman Sachs & Co analysts said on Tuesday.
Update: Indymac - Sink or Swim? - (www.ml-implode.com) - Shares of IndyMac have fallen in the past year from $32.54 down to $1.32 at mid-day today. Attorneys calling for Class Action su...
Catching Predators is Good; Economic Justice is Better - (www.ml-implode.com) - ``So far, no TV network has announced a special series on these corporate predators, but the New York Times business section has...
Hedge fund reveals big short position in HBOS - (www.ml-implode.com) - A US hedge fund on Monday revealed a short position of more than 3 per cent in the outstanding shares in HBOS, the mortgage lend...
S. Florida houses can now take months, even years, to sell - (www.sun-sentinel.com)
Houseowner Destroys House Before Foreclosure - (www.lasvegasnow.com) – This is becoming a recurring theme J
What Happens if We're Wrong? - (www.nytimes.com) - IN 1995, home prices in the United States rose by 1.7 percent. They kept climbing over the next 10 years at an accelerating rate. The climax was in 2005, when the increase was 15.7 percent, putting home prices at more than double their 1995 level. Except for the early years after World War II and during the great inflation of the 1970s, home prices in the United States had never doubled in the short space of 10 years.


Other Stories:

Bank of America now writing US laws - (corner.nationalreview.com)
Did Bank Of America Write The Housing Bill? - (market-ticker.denninger.net)
S&P Slashes BOA to Sell - Thanks Countrywide! - (mrmortgage.ml-implode.com)
Bank Bailout Bill Moves Forward Despite White House Veto Threat - (www.homeguide123.com)
$2 Trillion Reduction In Credit Card Lines Coming Up - (Mish at globaleconomicanalysis.blogspot.com)
Banks Trimming Limits for Many on Credit Cards - (www.nytimes.com)
Did Bernanke Go Too Far, or Not Go Far Enough? - (knowledge.wharton.upenn.edu)
Gas and House Prices: What a Difference Two Years Can Make - (www.seekingalpha.com)
As First-Time Buyers Vanish, the Lights Go Out Across Britain - (www.blackenterprise.com)
Insured Short-Term Muni Bonds Surge to 9% - (www.bloomberg.com)
Anatomy of the housing market's rise and fall - (www.honoluluadvertiser.com)
Property becomes an investment turn-off - (www.news.com.au)
Big brokers threatened by crackdown on shadow banking system - (www.marketwatch.com)
FBI Sweep Reveals New Twists to Mortgage Fraud - (www.npr.org)
New Credit Worries Cap Bad Week For Markets - (washingtonpost.com)
New Crisis Threatens Healthy Banks - (washingtonpost.com)

Odey Hedge Fund Discloses Short Position in Bradford & Bingley - (www.ml-implode.com) - Odey Asset Management LLP, the $5.1 billion fund manager set up by Crispin Odey, holds a short position in U.K. mortgage lender ...
In Distressed Mortgages, MBS Investors Stuck in a Holding Pattern - (www.ml-implode.com)
A defense borne of hubris, or stupidity - (www.ml-implode.com)
George Carlin (1937 - 2008) - (www.ml-implode.com)
Homeownership Is Effect, Not Cause Of Prosperity - (www.ml-implode.com)
Homeowner Begs Bank To Foreclose - (www.ml-implode.com)
Citigroup to cut 10 pct of investment bank unit: WSJ - (www.ml-implode.com)
Weekend Sneaky Monoline Downgrades - (www.ml-implode.com)
A Housing Depression, without a Depression - (www.ml-implode.com)
Hedge Funds Gird for Withdrawals - (www.ml-implode.com)

State, local governments layoffs 45,000 and counting - (money.cnn.com)
Overvalued housing not limited to U.S. - (www.iht.com)
Oil rises on modest Saudi increase, Nigeria - (www.ap.com)
Euro Falls Most Versus Dollar in Week as German Sentiment Ebbs - (www.bloomberg.com)
Gold Falls as Dollar Strengthens Against Euro; Silver Declines - (www.bloomberg.com)
U.S. Stocks Gain, Led by Energy Producers as Oil Price Climbs - (www.bloomberg.com)

Early rate rises not in Fed's Plan A - (www.ft.com)
Work outlook dim for graduates - (www.chicagotribune.com)
Fed, SEC to Redraw Regulation - (online.wsj.com)
Politics May Crimp Fed's Inflation Fight - (www.thestreet.com).com
State, city layoffs: 45,000 and counting - (money.cnn.com)
Thirty years on, inflation makes global comeback - (www.reuters.com)
Even Mild Inflation Should Scare You - (www.thestreet.com).com
Record corn prices mean more expensive meat, dairy - (www.chicagotribune.com)
Home hunting in the age of $4 gas - (www.boston.com)

At Oil Conference, Saudis Offer Slight Rise in Production - (www.nytimes.com)
Natural-Gas Forecast Is Hot - (online.wsj.com)
Panel Cites Surge in Speculative Trades - (online.wsj.com)
Soros, the Man Who Cries Wolf, Now Is Warning of a 'Superbubble' - (online.wsj.com)
401 (k) sponsors push for fee cuts - (www.financialweek.com)

Citigroup Plans Layoffs In Its Investment Bank - (online.wsj.com)
U.S. banks may need $65 bln new capital: Goldman - (www.boston.com)
Banks Struggle to Get Capital - (online.wsj.com)
FCC to Study TV Product Placements - (online.wsj.com)
Dexia Will Provide $5 Billion Line of Credit to FSA - (www.bloomberg.com)
Citigroup's global investment bank braces for layoffs - (www.iht.com)
Job fears mount as Goldman sheds staff - (www.ft.com)
United to raise fares, add minimum stays - (www.chicagotribune.com)

German Business Confidence Declines to Two-Year Low - (www.bloomberg.com)
Eurozone indicators raise stagflation fears - (www.ft.com)
Rupee Steepest Slide Since '93 Repels Funds on Prices - (www.bloomberg.com)
Chinese warned of record rise in ore price - (www.ft.com)
House-sellers outnumber purchasers by 15 to 1 - (www.ft.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 20 Housing and Economic stories

Top Stories:

Two More Homebuilders Go Bust - (Mish at globaleconomicanalysis.blogspot.com) - Oakridge Homes LLC in California and M.W. Johnson Construction Inc., which builds homes in Minnesota, Wisconsin and Florida, both sought Chapter 11 protection Friday. The companies are two of many home builders in bankruptcy proceedings, including Levitt and Sons LLC and Tousa Inc. M.W. Johnson, of Lakeville, Minn., reported assets and debts in the range of $50 million to $100 million in its bankruptcy petition and said it has between 200 and 999 creditors. The home builder's affiliate, M.W. Johnson Construction of Florida Inc., also filed for bankruptcy.
Kellogg shrinking cereal boxes - ContraCostaTimes.com - (www.contracostatimes.com) – How should a producer deal with inflation? Kellogg Co. is using smaller packaging while charging the same prices for five of its cereals sold in the United States, effectively raising their prices for the second time this year. The company started shipping the new boxes to stores in early June.
Paulson to Urge New Fed Powers - (www.washingtonpost.com) – How does the US Government punish the felons that got us into the mess in the first place? By giving them more powers of course. What is wrong with this picture.
Ambac Financial to Terminate Fitch Ratings Contract - (www.ml-implode.com) – If they won’t rate you highly, ask them not to rate you.
Thornburg’s Survival on the Line - (www.ml-implode.com) Thornburg Mortgage Inc. (TMA: 0.65, 0.00%), the ultra-jumbo mortgage lender that has been staring at possible extinction on and off over the course of most of 2008, said in a filing with the Securities and Exchange Commission Tuesday that its survival is in doubt. Questions over the company’s future remain despite a last-ditch $1.35 billion financing plan that saved the company from bankruptcy in late March
Phoenix Sellers: “So Tired, Tired Of Waiting…” - (www.ml-implode.com) – Some key figures:
Total number of properties found: 43,341 Active single family detached now on the market
Total number of properties found: 22,201 Single family detached more than 100 days on the marketTotal number of properties found: 11,493 Single family detached more than 200 days on the marketTotal number of properties found: 5830 Single family detached more than 300 days on the marketTotal number of properties found: 2802 Single family detached more than 400 days on the market
WaMu Nixes Option ARMs, Adds $1 Billion to Borrower Assistance Fund - (www.ml-implode.com)
Slowest May in 20 years for Bay Area housing activity - (www.sfgate.com)
Home Repossession Rates Double - (www.thetrumpet.com)
Foreclosure Prices Slashed by Desperate Lenders - (www.nuwireinvestor.com)
When Builders Go Broke - (www.businessweek.com)
Housebuilders scream for help after losing their 'one-way' bet - (www.telegraph.co.uk)
AMBAC mad that Fitch won't falsify ratings - (www.marketwatch.com)
Australia Loses Mind By Proposing Its Own Fannie Mae - (Mish at globaleconomicanalysis.blogspot.com)


Other Stories:

Screams For More Fed Authority Get Louder - (Mish at globaleconomicanalysis.blogspot.com)
How Citigroup Games The Play - (Mish at globaleconomicanalysis.blogspot.com)
Global stock and credit crash alert - (www.telegraph.co.uk)
Lenders, trade groups opposed to responsible lending - (www.latimes.com)
Rich facing foreclosure too - (www.dailybusinessreview.com)
Senators Deny Knowing Of Mortgage Loan Favoritism - (www.washingtonpost.com)
Ackman Was Right On MBIA Ambac - (www.ml-implode.com)
Japan Gripped by Suicide Epidemic - (www.timesonline.co.uk)
Bank Writedowns May Reach $1.3 Trillion - (www.bloomberg.com) – Are Bernanke and Paulson still saying subprime is “contained” J
Why Real Estate Market Is Nowhere Near a Bottom - (www.bloomberg.com)
Housing Bottom Keeps Moving Lower as Mortgage Rates Rise - (www.bloomberg.com)
Brace for other shoe to drop in mortgage mess - (msnbc.msn.com)
Mortgage Applications Index Fell 8.8% - (www.bloomberg.com)
Free Trade On the Ropes Amid Shortages - (www.bloomberg.com)
SoCal House Prices Continue to Plumb New Lows - (www.seekingalpha.com)
San Diego County house prices lowest since Sept. '03 - (www.signonsandiego.com)

NJ's AG Says Florham Pk's American Mortgage Co. Committed Fraud - (www.ml-implode.com) - The state is suing 15 corporations and 21 people in three real estate organizations, alleging complex schemes to cheat unschoole...
Hundreds swept up in mortgage fraud arrests - (www.ml-implode.com) - "More than 400 real estate industry players have been indicted since March — including dozens over the last two days — in a Just...
McMahon shouldn't be face of foreclosure - (www.cnn.com)
Selling your house means being realistic in down market - (www.sun-sentinel.com)
‘Old-School’ Wild-Card Housing Threat Coming Into Play - (www.ml-implode.com) - "Affordability is a moving target with many parts, which many forget about when offering up housing forecasts. One, which has co...
BankUnited needs a rescue - (www.ml-implode.com) - "After an analyst downgrade sent their stock diving 30% to $2.35 today, BankUnited Financial of Florida tonight issued a press r...
Ex-Bear Stearns Hedge Fund Managers Arrested - (www.ml-implode.com) - Two former Bear Stearns managers have been arrested, federal authorities said Thursday, becoming the first executives to face cr...
Wachovia Still Does Not Understand Pay Option ARM Risk - (Mish at globaleconomicanalysis.blogspot.com)
Investor's Business Daily calls for formal investigation of MoziloGate, - (www.ml-implode.com)
Tucson: New Home Prices Plunging Is The New Normal - (www.ml-implode.com)

Oil closes almost $5 lower on China's fuel price hike - (www.marketwatch.com)
Gold Rises as Surging Raw-Material Costs Spur Inflation Concern - (www.bloomberg.com)
Treasuries Fall After Note Sale Announcement, Jobless Report - (www.bloomberg.com)
U.S. Stocks Advance, Led by Technology, Transportation Shares - (www.bloomberg.com)
Inflation Now Enemy No. 1 for Fed - (online.wsj.com)
Big three central banks tone down rate hike threats - (www.boston.com)
Paulson To Urge New Fed Powers - (www.washingtonpost.com)
U.S. Initial Jobless Claims Fell to 381,000 Last Week - (www.bloomberg.com)
Many CEOs expect to cut jobs - (www.latimes.com)
Yellow Buses Put Schools in the Red - (online.wsj.com)
More consumers, workers shoplift as economy slows - (www.usatoday.com)


Gold May Rise to $5,000 on Inflation, Schroder Says - (www.bloomberg.com)
Free Trade in Food Is `On the Ropes' Amid Shortages, Price Rise - (www.bloomberg.com)
Hedge fund chief warns of worse to come - (www.ft.com)
Push for new sub-prime mortgage regulations loses steam - (www.latimes.com)
Investment in U.S. commercial real estate falls 70% - (www.latimes.com)
Commercial foreclosure postings rise 35% - (www.dallasnews.com)
Dearth of Ships Delays Drilling of Offshore Oil - (www.nytimes.com)
Europe's buy-out groups hit by funding slump - (www.ft.com)

Citigroup's Crittenden Sees More Subprime Writedowns - (www.bloomberg.com)
GM Delays New Truck, SUV Programs - (online.wsj.com)
Regulators Lay Plans for Investment Banks' Access to Fed Loans - (www.bloomberg.com)
Fallout From Bad Loans Rocks Regional Banks - (www.nytimes.com)
Overnight delivery becomes a luxury - (www.latimes.com)
Retailers evaluate new shopping centers more cautiously - (www.dallasnews.com)
Gannett Gets Stung by Loss of Ad Revenue - (online.wsj.com)
Ex-Bear Stearns Fund Managers Arrested by FBI Agents - (www.bloomberg.com)

Writedowns to hit HBOS as house market worsens - (www.reuters.com)
Amid Crisis, Argentina Wonders Which Kirchner Is in Charge - (online.wsj.com)
China May Be Overwhelmed by Cash, World Bank Says - (www.bloomberg.com)
U.K. Retail Sales Unexpectedly Rise by Most on Record - (www.bloomberg.com)
A Brave New World for Financial Regulation - (online.wsj.com)