Archive for October, 2008

Fed’s Bernanke Urges Reform on Mortgage Securitization Process

Friday, October 31st, 2008

Federal Chairman Ben Bernanke said Fannie Mae and Freddie Mac continue to remain under pressure and that the government must look at new methods to provide guarantees on mortgages. Speaking via satellite at a conference on the mortgage breakdown at the University of California at Berkeley, Bernanke urged the government ...

Zillow Survey Portrays Homeowners in Denial

Friday, October 31st, 2008

Our old friend Zillow, the Seattle-based company that provides data on home values in select areas of the country, has just released results of its most recent survey of homeowner perceptions of value. Zillow found that half of U.S. homeowners think that their homes are essentially worth the same amount today ...

September Personal Income & Spending Report Signals Worsening in Q4

Friday, October 31st, 2008

Economists say the personal income and spending report from the U.S. Commerce Department supports the view that fourth- quarter growth will be worse than the Q3 results published on Thursday. Personal spending, which comprises more than 70% of GDP, fell 0.3% in September, following two months of flat growth. Read ...

Fed’s Yellen Says Rates Could Reach Zero in Weak Economy

Thursday, October 30th, 2008

San Francisco Federal Reserve President Janet Yellen said the Fed could lower rates below 1%, and that they could reach as low as zero amid a weak economy. Speaking at an event hosted by the University of California at Berkley and UCLA, Yellen said that loan rates would be substantially ...

Cuomo Tells Big Banks - He is Watching

Thursday, October 30th, 2008

New York Secretary of State Andrew Cuomo is going after the big banks that originally signed on - although not all were initially willing - to the Treasury Departments plan to infuse funds into financial institutions in return for preferred stock and common stock warrants.  The subject?  Executive compensation. On Wednesday ...

Mortgage Rates Swing Upward Again This Week

Thursday, October 30th, 2008

Mortgage interest rates have been seesawing like the stock market over the last few weeks and this week they again took some mega-jumps. Frank Nothaft, Freddie Mac vice president and chief economist said in a press release, "Long-term mortgage rates followed long-term Treasury bond yields higher this week, pushing fixed-rate mortgages up ...

White House Adviser Lazear Says U.S. Can Potentially Rebound

Thursday, October 30th, 2008

In an interview with CNBC, Edward Lazear, economic adviser to the president, says the U.S. has potential for a strong rebound in 2009 and that economic weakness could last just a few months. Earlier on Thursday, the government reported Q3 GDP in the United States fell an annualized 0.3%. In ...

Economists Say Contraction in U.S. Q3 GDP Confirms Recession

Thursday, October 30th, 2008

U.S. Gross Domestic Product was slightly better than the market consensus, but economists' reactions were far from optimistic following the report. Most analysts, if not all, are expecting the fourth quarter to be worse than Q3, with some revising their forecasts downwards on Thursday morning. The advance GDP report showed the ...

IMF Sets Up New Lending Facility

Thursday, October 30th, 2008

The IMF has introduced a new lending facility worth up to $100 billion to aid developing countries stricken by the financial market turmoil. "Exceptional times call for an exceptional response," said IMF Managing Director Dominique Strauss-Kahn. "The Fund is responding quickly and flexibly to requests for financing. We are offering some countries..." Read ...

FOMC Puts Risk on Downside Growth, Inflation Off Radar, Analysts Say

Wednesday, October 29th, 2008

Economists say the unanimous FOMC decision to cut the Federal funds target rate by 50 basis points came as no surprise. Many said the statement is particularly dovish and points to further rate cuts come December 16. The accompanying statement said economic activity had decreased markedly from a decline in consumer ...