left right politics showbiz tech invest good life gossip fun hot
Mother Jones Hot Air Huffpo Variety Engadget Seeking Alpha Lifehacker TheSuperficial Daily Beast reddit
Daily Kos Michelle Malkin Politico Billboard Boing Boing TheBigPicture Luxist TMZ.com Fark BuzzFeed
ThinkProgress RightWingNews First Read CNN Showbiz Gizmodo FT Alphaville Joystiq Perez Hilton 4chan memorandum
Crooks+Liars Power Line CNN ticker E! Online Techcrunch Josh Brown Kotaku gamer Bastardly Post Secret Techmeme
TalkngPtsMemo Ameri..Thinker Swampland TV Guide Ars Technica 24/7 Wall St. TreeHugger Egotastic hascheezburgr Drudge
The Raw Story NewsBusters The Caucus Ent. News Mashable bloggingstocks Consumerist PinkIsTheNew dooce digg
Wonkette Wizbang fishbowlDC HlywdWiretap Google blog DealBook lifehack.org CelebrityBaby Someth'nAwful trends
Atrios Taki Magazine WashWhisprs DeadlnHllywd Read/Write Jeff Matthews 43folders GoFugYourself Neatorama PSFK
Firedoglake Big Hollywood The Fix MSN Ent. OReilly Radar PhilsStockWorld Autoblog Page Six Cool Hunter BBC
Young Turks IMAO Capital Gains Rot'nTomatoes GigaOM Daily Rec'ng Deadspin BestWeekEver stereogum Timespop
Americablog AceOfSpades Open Secrets Cinematical ProBlogger Zero Hedge DownloadSqd Dlisted CuteOverload media eye
Politicususa Redstate WikiLeaks law Cool Tools Bespoke MediaZone PopSugar Dilbert blog TVNewser
CounterPunch Jawa Report econ law.alltop Scobleizer BtwTheHedges Deviant ArtHollyw'dTuna gapingvoid BuzzMachine
TalkLeft Patterico EconLog Volokh Consp. Apple Blog Minyanville Gothamist x17online DailyGrail MediaGazer
Feministing Townhall.com Freakonomics Legal Insurrec.. Valleywag Fast Money Curbed DailyBlabber Prof. Hex Steve Rubel
PolitAnimal OutsideBeltwy CrookedTimbr Conglomerate mozillaZine RealClearMkts FabSugar Gawker OvrheardinNY MediaBlgNRO
Truthdig Moonbattery MarginalRevo SportsLawBlog Smashing W$J Mktbeat Gridskipper Radar Last.fm Threat Level
Alternet RealClearPoli crime W$J Law BlogTechdirt AbnormalRtrns Material Defamer kottke.org Seth's blog
Media Matters Instapundit CrimeblogsBalkinizationMAKE RandomRoger Sartorialist Jossip PumpkinChuckin mediamatters
The Nation Hugh Hewitt All Crime Credit Slips SrchEngLand Stock Advisors Drink'nMadeEasy Just Jared Maps Mania Newshounds
Maddow Blog PJ Media Smoking Gun FindLaw VentureBeat Slope of Hope Mark Cuban Celebitchy CollegeHumor FAIR

Thursday, January 10, 2008

Housing Prices May Sag Until 2011

Items of interest:

Housing Wire:
Housing Futures Suggest Recovery Won’t Be Seen Until 2011 -- A report on housing futures released today by TFS Derivatives Corp. suggests that investors are expecting home prices to fall through the end of 2010. The report, based on trading in CME housing futures and options, shows that investors are predicting a nationwide drop in housing prices of 9 percent in 2008 and 15.9 percent by November 2010.

Some scary graphs for you — housing price curves based on the CME futures ...

CME Housing Futures forecast

click to enlarge
Angelo R. Mozilo was in fantasylandPaperMoney Blog:
Countrywide Foreclosures: December 2007 -- Today, Countrywide Financial (NYSE:CFC) released their December Operational Results showing again that delinquencies and foreclosures are continuing to remain at troubling levels with delinquencies climbing 20.72% and foreclosures soaring over 105% since December of 2006. [...]

Either way you slice it, Countrywide is looking at some significant increases in foreclosure activity but notice that for the “unpaid loan principle” method, things are really looking dire. [...]
Angelo R. Mozilo, the chairman of the board and chief executive officer of Countrywide Financial, was indeed in a fantasyland.
Deal Breaker:
How We Got Here: Downpayments Were Nonsense, And Credit Scores Stood In The Way Of A Better Society -- On Monday, February 17, 2004, the National Mortgage News informed its readers that Angelo Mozilo wanted to eliminate downpayments on mortgages. Actually contributing equity to purchase a home is “nonsense,” Mozilo tells the News. He decries credit score requirements as too high.

“The only way we can have a better society,” Mozillo says, “is to make sure those who don’t have a house have the opportunity to get one.”

Welcome, ladies and gentlemen, to the better society. [...]

Mozilo: End Downpayment Requirement [National Mortgage News; pdf]
David Pauly / Bloomberg:
Subprime Folly's Lasting Effects on Wall Street -- When the definitive history of the subprime mortgage debacle is written, the losses now being reported by banks and securities firms, though enormous, may appear to be the least of the damage.

One prominent loser, Citigroup Inc., will promptly write off its red ink -- $16 billion so far -- to get a fresh start for future reporting periods. Analysts will even tout this as a sign to buy Citigroup shares.

Citigroup shareholders, however, have been permanently impaired even if the bank's profit recovers. So have stockholders of other companies -- such as Merrill Lynch & Co., Morgan Stanley, UBS AG, HSBC Holdings Plc and Bear Stearns Cos. -- that dropped billions of dollars [...]

Calculated Risk

MishTalk - Mike Shedlock

Paul Krugman - NY Times

The Big Picture - Barry Ritholtz

naked capitalism - Yves Smith

Pragmatic Capitalism

Washington's Blog

Safe Haven

Paper Economy

The Daily Reckoning - Australia