Items of interest:
Rescues for Homeowners in Debt Weighed --Prodded in part by some of the nation’s biggest banks, the Bush administration and Congress are considering costly new proposals for the government to rescue hundreds of thousands of homeowners whose mortgages are higher than the value of their houses.
Not since the Depression has a larger share of Americans owed more on their homes than they are worth. With the collapse of the housing boom, nearly 8.8 million homeowners, or 10.3 percent of the total, are underwater. That is more than double the percentage just a year ago, according to a new estimate of the damage by Moody’s Economy.com. . .
Housing: Underwater Isn't the Same as Negative Equity - Seeking Alpha
Moody's: 8.8 million Homeowners Underwater - CalculatedRisk
U.S. life insurers’ subprime losses may hit $8B: Fitch -- U.S. life insurers’ unrealized investment losses related to subprime and other mortgage investments are in the $7 billion to $8 billion range, but the exposure is manageable, Fitch Ratings Ltd. said in a report.
Chicago-based Fitch said that the expected loss range for subprime and so-called Alt-A residential mortgage collateral represents about 13% of the insurers’ holdings and 3% of aggregate industry statutory capital. Alt-A mortgages are those that fall between prime and subprime.
Furthermore, Fitch said it expects the industry to report between $2 billion and $3 billion in realized losses on a pretax basis for the fourth quarter of 2007.
Fitch said, however, that it “continues to view the U.S. life insurance industry as well-capitalized.” [...]
- Housing Market Tracker - Post-Boom State Governments Hurting More - Seeking Alpha
- How to Help Both Homeowners and Lenders, at No Public Cost - Seeking Alpha
- Japan Aioi Insurance subprime losses to hit $857 mln - Reuters
- The Bond Mess: Eliot's Bad Fix - Nicole Gelinas, New York Post
- Treasury: Mortgage Market Needs Time to Self-Correct - Housing Wire
- Did Greenspan Really Get it "Mostly Right" - Steve Hanke, Globe Asia
- Don't Rerun That '70s Show - Paul Krugman, New York Times
- Roof Sold, and a Hard Rain Is Falling - Jeff Matthews
- Hard to Predict the Fed and ECB - Mark Gilbert, Bloomberg
- Why the ECB Must Cut Rates - Eloi Laurent, Financial Times