Items of Interest:
Mohamed El-Erian, FT.com,
co-chief executive and co-chief investment officer of Pimco:
Why this crisis is still far from finished -- During the past few weeks we have seen a growing number of market participants predict an end to the dislocations that erupted last summer and claimed victims throughout the financial system and beyond. While their predictions are understandable, they are premature. The dynamics driving the disruptions are morphing and may again move ahead of both the market and policy responses.
The optimistic view is based on two distinct elements. First, that the deleveraging process is reaching its natural end as valuations stabilise and institutions come clean about their losses and raise capital; second, that a series of previously unthinkable policy responses have been effective in restoring liquidity to the financial system...
The market's worst is yet to come - Bill Fleckenstein
Everything’s Coming up Rosy! - Herb Greenburg
Pain of Foreclosures Spreads to the Affluent -- This wooded town of roughly 60,000 on Long Island Sound — home to dozens of hedge funds, many millionaires and more than a few billionaires — is one of the wealthiest enclaves in the country. But even Greenwich is not immune to the wave of home foreclosures sweeping the nation.
On Stanwich Road, for example, a house worth $2.6 million is close to going on the block. On Hettiefred Road, the owner of a 2,720-square-foot, four-bedroom colonial featuring a luxury kitchen, swimming pool and tennis court, has been threatened with foreclosure for months. Several dozen other owners in Greenwich have received foreclosure notices this year...
- Gov't Got What It Asked For in Housing Bust - Caroline Baum, Bloomberg
- As Home Sales Plunge, Some Say the Crisis Is Almost Over - Seeking Alpha
- Disastrous New Home Sales - Seeking Alpha
- The New Guard of Vulture Investors - Emily Thornton, BusinessWeek
- Bagehot's Lessons for the Fed - Ron McKinnon, Wall Street Journal
- The Fed Should Stand Pat Next Week - John Berry, Bloomberg
- Starbucks Blames Woes On Housing - Housing Doom blog
- Mortgage Rates Continue Upward Climb - Housing Wire