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Want to See Lehman's Actual Bankruptcy Filing?
Tweet Share on Facebook September 17, 2008 Comment (1)The good folks over at patrick.net have gotten their hands onLehman Brothers' actual bankruptcy filing. Print it out, and put it on your wall—right next to your WorldCom and Enron paperwork.
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Is Down Payment Assistance Coming Back?
Tweet Share on Facebook September 17, 2008 Comment (24)It wasn't that long ago that President Bush moved to ban the controversial seller-funded down payment assistance programs. But now, congressional supporters have moved legislation to keep such assistance alive.
From the press release:
WASHINGTON D.C. - September 16 - A Bill that would save seller-funded downpayment assistance from being eliminated on October 1 passed the House Financial Services Committee today on a voice vote amidst strong bipartisan support. The Bill, The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008, or H.R. 6694, is expected to move to the floor for a full vote in the coming days.
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AIG in Turmoil: Should Policyholders Worry?
Tweet Share on Facebook September 17, 2008 CommentI was recently in touch with Timothy Speiss, a partner and practice leader of Eisner's personal wealth advisers' practice. Over E-mail, he passed along the following advice for AIG policyholders:
What does the current turmoil surrounding AIG mean for its policyholders?
Certainly current circumstances are unsettling. However, every state has a guaranty association in place to protect policyholders in the event of an insurer's failure. Insurance companies maintain separate entities for insurance operations and must meet state regulatory and capital requirements to fulfill obligations to policyholders. For life insurance policies every state, plus the District of Columbia and Puerto Rico, runs a guaranty association that requires insurance companies to essentially cover for their competitors. That is, firms have to pay a fee and the amount is based on their market share in any given state, to help ensure any failed institutions' customers are protected. If they don't pay the fee, they risk losing their license in that state. Life insurance policyholders are protected for at least $100,000 in cash surrender or withdrawal value on their policy and at least $300,000 in death benefits.What should you do if you have an AIG policy?
Speak with your insurance adviser/broker and review the type of insurance product you hold. Review investment features. Review your state's insurance guaranty provisions and the rating agencies' comments regarding the carrier. Consider acquiring coverage through another provider. -
Mark Zandi on the Housing Bottom
Tweet Share on Facebook September 16, 2008 Comment (3)I just spoke with Mark Zandi, chief economist for Moody's Economy.com, informal adviser to John McCain's presidential campaign, and the author of "Financial Shock: A 360 Degree Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis." In our conversation, Zandi offered his outlook for the housing market.
Excerpts:
When do you expect housing prices to stabilize?
Summer 2009. Prices will fall another as much as 10 percent from their current levels. We are down 20 percent from their peak. -
Neighbor's Barking Dogs Trigger $25K Lawsuit
Tweet Share on Facebook September 16, 2008 Comment (50)Sick of your lousy neighbor's dogs barking all night? Ever consider suing? That's what two brothers in Ohio reportedly did after their neighbor was allegedly unable to keep his dogs from yapping.
From the Cleveland Plain Dealer:
The brothers [Tom and Joe McDaniel] have sued Dan Ullman, claiming the relentless yapping of his dogs has created anxiety and compromised their standard of living. They are seeking more than $25,000 in damages.
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Top 10 Cities for Jobs and Economic Growth
Tweet Share on Facebook September 15, 2008 Comment (1)The Milken Institute/Greenstreet Real Estate Partners is out with its latest report ranking metro areas in the United States "by how well they are creating and sustaining jobs and economic growth. The components include job, wage, and salary and technology growth."
From the report, "Best Performing Cities 2008: Where America's Jobs Are Created and Sustained":
This year's rankings of where America's jobs are being created and sustained shows the impact of a broad rebound in the technology sector, along with strong activity in exports and energy production.
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‘Golden Parachutes’ for Fannie/Freddie CEOs?
Tweet Share on Facebook September 15, 2008 Comment (1)Looks as if the ex-CEOs of Fannie Mae and Freddie Mac—the mortgage finance giants that were recently taken over by the federal government—might not be strapping on those golden parachutes after all...
From Bloomberg:
The Federal Housing Finance Agency notified former Fannie CEO Daniel Mudd and former Freddie CEO Richard Syron that they will not receive the exit pay called for in their employment contracts now that the companies are under federal control, the regulator said in a statement yesterday on its Web site.
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Will the Fed Cut a Half Point Tomorrow?
Tweet Share on Facebook September 15, 2008 CommentWhat will the Fed do when it meets tomorrow?
Although a rate cut looked highly unlikely just last week, Merrill Lynch economist David Rosenberg now says the central bank could lower the federal funds rate by a half point—to 1.5 percent—tomorrow.
From Merrill Lynch:
Look for -50bp on Tuesday
The market is now almost fully pricing in a 25 basis point rate cut tomorrow. However, in the current environment we think the Fed may feel the need to get in front of the situation with a more aggressive move. We had expected the Fed to cut 50 basis points in the first quarter of next year as inflation rolled over and growth slowed sharply. Recent events suggest a large deleveraging of the banking system is picking up steam and suggests the risks to the economy are entirely concentrated in the growth outlook (inflation concerns will take a back seat, or move to the trunk). In that environment, it makes little sense for the Fed to wait. While the timing is still highly uncertain, financial conditions are tightening to such an extent that we think it makes perfect sense for the Fed to cut rates by 50 basis points on Tuesday and we may even see additional moves as conditions warrant (the risk of only going 25 bps at this juncture is that it will be viewed as too tepid a response to these epic contractionary events).
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Laura and George Bush's First Home for Sale
Tweet Share on Facebook September 12, 2008 Comment (1)Here's a great gift idea for the GOP die-hard in your family: The first home of President George Bush and First Lady Laura Bush is on the market.
From the Los Angeles Times:
Listed for $239,900, the home at 1405 W. Golf Course Road has 2,406 square feet and was built in 1976, one year before the Bushes moved in.
With light airy spaces and a mostly concrete back patio ("low maintenance yard" is how Realtor Ruth Young puts it), the home is where the couple had their daughters (1981) and the future president ran for Congress, and lost, in 1978.... It still boasts Laura Bush's original drapes, and offers buyers a chance to cook on Laura Bush's original stove.
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Buy Expensive Doll House, Get Real One Free
Tweet Share on Facebook September 11, 2008 Comment (1)The housing crisis has been like the Super Bowl for sales-gimmick fans. This latest one comes from a Michigan couple struggling to sell their home.
...they decided to use a more creative sales approach: Buy a miniature replica of the home for $169,000 and get the real thing thrown in for free.
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