New house sales down

The Commerce Department reported today that sales of new houses where down to the lowest level since 2000. Median prices fell as well.

via cnbc.com

The fall of television

After paying for endless channels of cable or satellite television, viewers are being "sniped" to distraction by ever more on-screen promos.

via nytimes.com

Housing sales, prices still weak

Sales of existing houses were down again in August according to the National Association of Realtors(NAR). Inventory increased to a another record.

The NAR also reported that prices of existing houses increased in August. However, the latest S&P/Case-Schiller index indicated that prices were down in July 2007 from a year earlier in major markets.

Bernanke ka-put?

How long will the Federal Reserve's attempted rescue of the markets last. Maybe not very long according to Phyllis Goffney of CNBC.

via cnbc.com
http://www.cnbc.com/id/20890024

The Fed's confidence game

The Federal Reserve lowered the fed funds rate yesterday from 5.25% to 4.75% and the discount rate from 5.75% to 5.25% to apparently restore confidence to the stock and credit markets.

Meanwhile, the Labor Department yesterday reported that the August Producer Price Index fell 1.4% (seasonally adjusted). Today, they announced that the August Consumer Price Index was down 0.1% from a year earlier.

Investor's Business Daily noted today that, the "Fed believes the crises in credit markets is more severe than generally presumed."

Nobody seems to be mentioning that repricing of homes and buyout deals represents money which has just evaporated.

Home builders pessimistic

On the day that the Federal Reserve is supposed to rescue the economy by reducing the fed funds rate, the National Association of Home Builders is raining on the parade.

via money.cnn.com

Bad days at Northern Rock

Bank runs were suppose to be a thing of the past. Distant memories of the 1930s. But a large mortgage lender in the United Kingdom saw just that with a whopping 2 billion pounds ($4 billion) withdrawn since late last week.

via money.cnn.com

FCC sued over open access

The Federal Communications Commission (FCC), home of one of the best greased revolving doors in Washington, has been sued by Verizon Wireless Inc. over open-access to bandwidth being actioned off in January 2008. Typically, the large telecommunications companies consider FCC commissioners to be their lapdogs. Maybe the FCC will serve the public interest for a change.

Housing slump just beginning

Whether or not the current troubles in the housing and mortgage markets are short term or will lead to a recession remains to be seen. Yale economist Robert Schiller, author of Irrational Exuberance, about the stock market, also looked at housing prices since 1890. He says that decades long drops in housing prices have occurred.

via time.com

End of the oil economy

Will the production of crude oil soon peak? Or has that already happened? Depends on who you ask.

via money.cnn.com

Credit markets still ailing

The market for short term commercial paper remains tight, suggesting that the credit crunch is far from over.

Countrywide scores $12 billion

Countrywide Financial Corp (CFC) announced that it has arranged an additional $12 billion to finance its mortgage lending operations. The dollar amount of loans made in August was down 17% from a year earlier.

via cnbc.com

The threat from complexity

In the New York Times, September 12, 2007, “Who Needs Hackers?” John Schwartz describes the vulnerability posed by “…increasingly complex networks…” which can be more troublesome than deliberate Internet attacks. A seemingly minor failure can cascade into a major problem.

“Society is growing ever more dependent on computers and computer networks….” When automation goes bad, the machine power works against you and can greatly magnify the downside. The high performance of complex systems is obtained at a cost. They can perform really well until something goes wrong, then any failure can be catastrophic. Complex systems just don’t fail gracefully. And failures tend to be unpredictable.

The computer software embedded in the “Star Wars” space antimissile defense system was so extensive that it could never have been adequately tested. Current versions of antimissile system are also of questionable reliability.

Home refinancing problematic

The exit door from adjustable rate mortgages which are resetting to higher payments may have been slammed shut already.

However, another report suggests that the Federal Reserve will attempt to help by lowering short term interest rates.

via cnbc.com and money.cnn.com

Chip implants may be cancer risk

Laboratory studies on mice have reportedly shown that implantable RFID identification chips pose a risk of cancer in animals. The devices are made by VeriChip Corporation and were approved by the FDA on January 10, 2005.

via bradenton.com

Countrywide still short of cash

Countrywide Financial (CFC) is reported to be looking for more cash to continue mortgage lending operations.

Via money.cnn.com

FED rate cut futile

As mentioned in an earlier post, a cut in the fed funds rate will do no good. It can only add to the speculative fever.

The most likely outcome of the September 18 Federal Reserve meeting is that they will do nothing.

via money.cnn.com

SEC deletes post 1929 crash stock trading rule

On June 28 the Securities and Exchange Commission (SEC) adopted a rule, Release No. 35-55970, effective July 3, 2007 which eliminated the requirement that short sales of stocks could only be made after an uptick, that is, after the price rose on the last sale. That rule was put into effect after the stock market crash of 1929 to make it harder for traders to accelerate a rapidly falling market.

With hedge funds and other automated trading systems adding volatility to the market, it seems insane that elimination 0f short sales on uptick rule be made now.

Via The Wall Street Journal 9/10/07

Countrywide cuts workforce

Countrywide Financial (CFC), the nations largest mortgage lender, announced plans to lay off between 10,000 and 12,000 employees in the next three months.

via cnbc.com

BlackBerry goes down again

Research in Motion Ltd. was less than forthcoming in explaining the latest failure of their BlackBerry service yesterday.

This is a good example of the perils of dependence on very complex technological devices and systems.

via ABC News

Home foreclosures up, CFC down

Foreclosure filings in the April-June quarter of 2007 reached a record high according the the Mortgage Bankers Association.

Meanwhile, Countrywide Financial (CFC) announced yesterday that it was laying off 900 employees in addition to the 500 let go last month.

via cnbc.com

Sales of used homes to be down

Commitments to sell used homes were down 12.6% in July, the lowest number since September 2001, according to the National Association of Realtors.

via cnbc.com