All Posts Tagged With: "housing"

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…

6Mar2009 | Money Morning | 0 comments | Continued

Bailout Plan Forcing U.S. to Borrow $1.4 Trillion, Creating a $1 Trillion Deficit

The U.S. Treasury Department plans to borrow a record $550 billion in the current quarter, and another $368 billion in the first three months of the New Year – money needed to fund the $700 billion bailout plan the government is using to battle the worst financial crisis since the Great Depression.

Wall Street bond traders estimate that the U.S. government will have to borrow a record $1.4 trillion during the current fiscal year – an unprecedented amount of debt that’s nevertheless needed to cover a federal budget deficit that’s expected to approach $1 trillion for the fiscal year, CNNMoney.com reported.

Story continues below…

Sign…

5Nov2008 | Money Morning | Comments Off | Continued

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…

15Jul2008 | Money Morning | Comments Off | Continued

Pity The Poor People Who Took The Bait!

The New York Times says, “Rural US Takes the Worst Hit.” They refer to people who need to drive long distances to work…or shop…or go to the movies.

Here in Europe, people tend to stay close to home. Partly because it is a small place…and partly because gasoline is $9 a gallon. But in America, it is not unusual to drive 50 miles to work…or an hour to go to a restaurant.

In Europe, towns tend to be densely populated…with little suburban sprawl. But in America, houses spill out onto the Great Plains…the deserts…and the farmland – far from the city centers.

The suburban…

11Jun2008 | Daily Reckoning | Comments Off | Continued

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,…

7Jun2008 | Money Morning | Comments Off | Continued

Financial Indicator – Countrywide Financial

Follow This Indicator To Gauge Financial Sector Health – And Grab Profits

Smart Profits Report
by Karim Rahemtulla, Investment Director

It’s one of the most important companies in America today…

But like any company, it’s got its share of pros and cons. For example…

Pro: It holds the position of the largest private, non-governmental originator of mortgages in the US.

Con: It also holds the dubious distinction of being one of the most blatant issuers of sub-prime paper.

I’m talking about Countrywide Financial (NYSE: CFC) – the much-beleaguered bank and mortgage company.

And there is an interesting trend occurring at the bank – one that bodes well for banks…

4Jun2008 | Smart Profits Report | Comments Off | Continued

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…

26May2008 | Money Morning | Comments Off | Continued

With Much Blood-Letting to Come, the U.S. Housing Finance System Needs Replacing

In much of the discussion about the collapse of the U.S. housing market, commentators have assumed that the massive run-up in property prices that preceded the subprime-mortgage meltdown were simply the result of a speculative frenzy that became a full-fledged market bubble.

But that’s not the case at all.

You see, the bubble and subsequent crash were inevitable under the current system of housing finance. Fundamental changes must be made.

Standard and Poor’s recently projected the likely future loss rate on the $650 billion of subprime-mortgage-backed securities that are still out in the marketplace. From that we can estimate the losses S&P is…

2May2008 | Money Morning | Comments Off | Continued
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