Obama’s Housing Plan: May Continue to See Falling House Prices

Although the new Obama administration housing plan is expected to help about 9 million struggling American homeowners avoid foreclosure, there are also concerns the proposal could actually extend the country’s economic woes by prolonging the freefall in housing prices.

Critics also fear the plan won’t help tens of thousands of borrowers in the most-battered housing markets who won’t qualify because the values have fallen too far.

The housing plan unveiled by the Obama administration Wednesday is intended to help 9 million struggling homeowners avoid foreclosure.  But there are serious doubts about whether it will help tens of thousands of borrowers in the…

Inside Wall Street: The Fannie Mae/Freddie Mac Bailout is Necessary – But Don’t Expect a Happy Ending

It’s the end of the “American Dream.” It’s the story of how the inevitable bailout of insolvent housing giants Fannie Mae (FNM) and Freddie Mac (FRE) – with the Federal Housing Administration soon to follow – will ultimately lead to such sorrowful sequels as “TheDeath of the Dollar,” “The Downgrading of U.S. Government Debt” and, yes, “The Depression.”

Let’s be very clear on one point, however: There’s no question about it – Freddie and Fannie have to be supported. If the doctrine of “too big to fail” didn’t already exist, it would have to be invented – immediately. Although many are arguing against…

The U.S. Economy’s Uncertainty Brings Opportunity for Investors in the Months to Come

With a wheezing economy that’s struggling with housing and credit problems – as well as a weak dollar – it’s clear the United States won’t be in the investment spotlight this year.

But don’t despair. Because a trend that has long been talked about – economic decoupling – is finally starting to manifest itself as other world economies, particularly the so-called “BRIC” markets of Brazil, Russia, China and India, have continued to grow even as the U.S. economy has slowed. That means profit opportunities abound for U.S. investors, despite myriad messes on the home front that include a collapsed housing market,…

Cashing in on Commodities: Lumber & Paper Mills Struggle as Timber Stands Tall

There’s a classic squeeze going on in the timber markets right now.

As you might expect, the U.S housing slump is reducing demand for finished lumber. Meanwhile, timber, pulpwood, and paper prices are rising worldwide – but curiously, profit margins are eroding.

What’s up with that?

The global commodity boom has created a supply/demand price imbalance between the four distinct industry sectors that rely on timber as a raw material. In fact, that imbalance is a huge mismatch. And savvy investors may be able to wring substantial returns from the winner.

You see, timber companies have shrewdly maintained monopoly-like control of…