CAR Forecasts 24% Price Drop for California Houses - Jonathan Lansner  - seeking alpha

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Why Inflation is Lower Than You Think - Felix Salmon - In one of the smartest pieces of linkbait I’ve seen in a very long time, David Leonhardt today not only defends the CPI, but even says it’s overstating inflation  … - portfolio.com 

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Housing’s Reliance on Fannie Mae, Freddie Mac Poses Risks - The New York Times examines the extent to which the US housing market is dependent on Fannie Mae and Freddie Mac, and wonders whether a further decline in house prices could put the government-sponsored enterprises in deep trouble…. - Research Recap

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What is Countrywide Worth? - …  My view then and now is that CFC is a zero barring a government intervention/giveaway like the Bear Stearns deal … - creditbubblestocks

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Will taxpayers be on the hook for subprime crisis? -  Mark Trumbull - Federally linked entities like Fannie Mae now back 98 percent of home loans sold by banks. … Christian Science Monitor 

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Downey Financial Reports Higher Incidence of Delinquency When Minimum Payments Reset - … our loans held for investment that have not been modified but had first time payment recasts since December 31, 2006, of which 36.1% were delinquent 30 or more days at March 31, 2008.” …  - creditbubblestocks  

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Reverse Mortgage REMIC On Its Way - Reverse Mortgage Daily

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The Biofuels Backlash - To create just one gallon of fuel, ethanol slurps up 1,700 gallons of water, according to Cornell’s David Pimentel, and 51 cents of tax credits. … Corn-based ethanol, instead of producing a 20 percent savings, nearly doubles greenhouse emissions over 30 years, according to a report in the journal Science. … - Wall Street Journal

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The Institutional Risk Analyst:  -  Will BAC + CFC Ever Close? Readers Comment - 

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Diane Swonk’s Themes on the Economy - May 2008

- The decline in consumer sentiment
- The squeezing of the middle-end and low-end income strata
- The bifurcation of U.S. consumer spending
- The importance of human capital
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FHA Reverse Mortgages Are Protected From Falling Property Values - Newsday notes that FHA-backed reverse mortgages, known as Home Equity Conversion Mortgages, make up 90 percent of the reverse home mortgage market because they carry a guarantee protecting both the homeowner and lender from falling property values. -   knowledgeplex 
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Transcript of Interview with BestMinds, Inc. - David Kotok - Cumberland Advisors

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Subprime In Sheep’s Clothing - … While the problem with subprime mortgages is well known and likely to be largely played out, their upscale cousins, known as Alt-A loans, are now threatening creditors with a new default spree. … - Forbes 

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Small Banks Punished for Big Banks’ Sins The regulators have gotten things totally backwards - Vernon W. Hill - bankstocks.com 
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State Street Subprime Damages Could Reach Nearly $8 Billion -  State Street Corporation, the nation’s largest institutional money manager, could face damages tied to subprime investments that reach as high as $7.8 billion, according to a news agency report Thursday… -  housingwire

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Fitch: Second Liens Driving Alt-A Losses -  Among the key factors driving a historic surge in borrower delinquencies and defaults are a preponderance of second liens among recent Alt-A vintages, Fitch Ratings said Wednesday afternoon… -  housingwire

posted by Bill Coppedge