"A helicopter crashed through a house and came to rest in flames across the street early Sunday in Kenosha, Wisconsin, killing the two people aboard but missing the home's five occupants, officials said.
" (2008-9-22)
Showing posts with label presse. Show all posts
Showing posts with label presse. Show all posts
September 22, 2008
Helicopter crashes into house, killing two aboard
September 21, 2008
When Your Couch Is on Order and the Company Goes Bankrupt
"Maybe they'll become collector's items, my coffee table from Bombay Co., some old bedside tables from Scan. Both are retailers that have shuttered their stores after filing for bankruptcy protection. It's the trickle-down result of a poor housing market.
" (2008-9-21)
America's Fed, Treasury and Congress will spend big money to keep markets in check
"America's Treasury asks Congress for $700 billion to stabilise the marketsUNTIL this week America's authorities clung to the hope that they could tide over the financial system with a few loans until home prices stabilised and all the bad debts were accounted for. But the destruction visited on Wall Street in the past week has dashed those aspirations and forced policymakers to consider a more sweeping response. The bankruptcy of Lehman Brothers and AIG’s federal takeover have triggered a wholesale flight to safety that could turn illiquid institutions insolvent. Healthy corporations can no longer issue bonds. Banks can barely borrow from each other. The federal government, having lent hundreds of billions of dollars to banks and investment banks and AIG, now thinks it must put permanent capital into the financial system to restore confidence and stop the vicious spiral. Hank Paulson, the treasury secretary, and Ben Bernanke, chairman of the Federal Reserve, met Congressional leaders towards the end of the week. And on Saturday September 20th Mr Paulson sent a preliminary plan under which the federal government would be authorised to purchase up to $700 billion of "residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages" originated or issued on or before Wednesday. It could buy them from any financial institution headquartered in the United States. ..." (2008-9-19)
AIG, an insurance giant, is bailed-out by America's government
"America’s government comes to the rescue of a giant insurance company AMERICAN finance has a new, if reluctant, kingpin: the government. In a dramatic move on the evening of Tuesday September 16th the Federal Reserve agreed to provide American International Group with a loan of $85 billion to help it stave off bankruptcy. In return, either the Fed or Treasury will take effective control of the company, which until recently was an icon of private-sector capitalism. In the space of nine days, the government has found itself having to take charge of both the country’s largest insurer and its two giant mortgage agencies, Fannie Mae and Freddie Mac. The move comes two days after Lehman Brothers, a big investment bank, filed for bankruptcy after being denied federal help, and Merrill Lynch, another Wall Street giant, fled into the arms of Bank of America for fear of being swept away by the hurricane battering global financial markets.As well as writing general-insurance policies all over the world, AIG plunged disastrously into the market for derivatives linked to housing and credit. Its exposure to the murky credit-default swaps market alone is a notional $441 billion, enormous by anyone’s standards. As the market value of these derivatives fell, the firm found itself strapped for capital, and was forced last weekend to approach the Fed, cap in hand. The central bank initially demurred, instead nudging JPMorgan Chase and Goldman Sachs to try to help AIG raise the money from private sources, such as other banks, private-equity firms and sovereign-wealth funds. Those efforts failed, however, and AIG’s predicament worsened on Monday when the big rating agencies downgraded its debt, forcing it to post more than $13 billion of extra collateral with trading partners. At that point officials performed a U-turn and began negotiating an emergency rescue. ..." (2008-9-17)
A House Tour With Two-Wheeled Appeal
"PORTLAND, Ore. -- With gas prices high, bicycles flying out of stores and a buyer's market for houses, a handful of real estate agents around the country are touting the two-wheeled appeal of their listings.
" (2008-9-13)
Best- and worst-case economic scenarios
"Will the 13-month-old credit crunch get even worse and drag down the entire global economy? Or are punch-drunk Americans due for some good news for a change?" (2008-9-12)
‘Board-up’ guys see boom in housing bust
"As the number of foreclosed homes grow, a very specific kind of contractor is needed: Board-up guys who prevent the residences from becoming squats." (2008-9-9)
Government now ‘nation’s mortgage lender’
"Private analysts worry the government bailout of Fannie Mae and Freddie Mac will not be enough to stabilize the slumping housing market." (2008-9-8)
Mortgage giants were blind to bubble
"Mortgage giants Fannie Mae and Freddie Mac — despite their robust cadre of economists and mortgage experts — failed to heed warnings that the housing bubble would burst." (2008-9-8)
A New Way to Tap Home Equity
"Improbable as it sounds at a time when U.S. homeowners have lost billions of dollars in equity, an industry is taking shape to help them tap portions of their equity wealth without incurring traditional mortgage debt or making interest payments.
" (2008-9-6)
Even Height of Luxury Proves a Tough Sell
"The U.S. housing crisis arrived on July 14 at Stonebrook Court, the 26,000-square-foot Tudor-style home of California venture capitalist Kelly Porter. On that day, four months after putting the house on the market, he cut the price by $7 million.
" (2008-9-6)
Where home prices may actually ... rise?
"Believe it or not, in the future people will be buying and selling homes. Some of them will even make a profit." (2008-9-5)
The economy: In need of more Band-Aids
"A poor second half could boost the odds of more stimulusTHE American economy entered the summer on a strong note as GDP grew by an annualised 3.3% in the second quarter. That figure, released last week, was much better than the first estimate of 1.9%, and mostly reflected a strong trade performance. Another important factor was that, despite rising unemployment, soaring fuel prices and constricting credit, consumer spending managed to grow at a 1.7% annual rate. For that, thank a fiscal stimulus package that included $110 billion in tax rebates, of which $92 billion had been disbursed by early July. Without those cheques, Macroeconomic Advisers, a forecasting firm, figures that consumer spending would not have grown at all. The second half is already looking weaker. Real consumer spending tumbled at a 0.4% monthly rate in July (see chart) as car sales plunged and high oil prices bit. The drop may also have reflected a reversal of the temporary boost from rebates delivered in previous months. Economists at Bank of America think consumer spending will decline in the current quarter, for the first time in 17 years. The fourth quarter could be worse. Unemployment is probably heading higher. Housing may be bottoming, as stocks of unsold homes drop and price declines slow, but the credit crunch shows no sign of easing. ..." (2008-9-4)
The Luck of the Landlords
"The slumping housing market hit Teresa Walsh hard. Seeking a better life for her two daughters, Walsh put her house in Menlo Park, Calif., on the market and moved to Bethesda.
" (2008-8-30)
Realtors peddle homes to bike-happy clients
"With gas prices high, bicycles flying out of stores and a buyers' market for houses, a handful of real estate agents around the country are touting the two-wheeled appeal of their listings." (2008-8-29)
A Wake-Up Call on Home Equity Loans
"An increase in consumer complaints over the cancellation or reduction of home equity lines of credit has prompted one federal banking regulator to remind financial institutions about the laws governing this type of loan.
" (2008-8-28)
When Cutting the Price, Take a Big Bite, Not a Bunch of Nibbles
"Cutting the price to get your home sold isn't quite as simple as it seems.
" (2008-8-24)
Book review: "Houseonomics: Why Owning a Home Is Still a Great Investment," by Gary N. Smith and Margaret H. Smith
"Owning instead of renting, even in the current climate, pays a financial dividend, the authors explain.
With home prices continuing to fall -- and expected by many experts to decline further before finding a bottom -- it's very easy to play that "woulda, shoulda, coulda" game and envision how life might have been different had you sold that home back in 2005 and run off with the profit to Tahiti." (2008-8-23)
Appraisal Problems Worsened Meltdown
"CHARLOTTE, N.C. -- As soaring home prices set the stage for America's great housing meltdown, a critical step in making sure those home sales were a fair deal -- the real estate appraisal -- was undermined from within.
" (2008-8-23)
Economics focus: Lessons from a “lost decade”
"Will America follow Japan into a decade of stagnation? AS FALLING house prices and tightening credit squeeze America’s economy, some worry that the country may suffer a decade of stagnation, as Japan did after its bubble burst in the early 1990s. Japan’s property bubble was also fuelled by cheap money and financial liberalisation and—just as in America—most people assumed that property prices could not fall nationally. When they did, borrowers defaulted and banks cut their lending. The result was a decade with average growth of less than 1%. Most dismiss the idea that America could suffer the same fate as Japan, but some of the differences are overstated. For example, some claim that Japan’s bubble was much bigger than America’s. Yet average house prices nationwide rose by 90% in America between 2000 and 2006, compared with a gain of 51% in Japan between 1985 and early 1991, when Japanese home prices peaked (see left-hand chart). Prices in Japan’s biggest cities rose faster, but nationwide figures matter more when gauging the impact on the economy. Japanese home prices have since fallen by just over 40%. American prices are already down by 20%, and many economists reckon they could fall by another 10% or more. ..." (2008-8-21)
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