From SPF's S-3 Filing: [more]
Inventory of houses started and unsold declined to 823 units at December 31, 2007, denoting a decrease of 52.8 percent from December 31, 2006. [more]
Reuters) - Lehman Brothers said sales trends in the U.S. homebuilding industry will improve within the next two quarters and initiated the sector with a "positive" rating.
Stocks in the sector will remain volatile as new home sales have not bottomed and trends will improve by the second half of 2008, Lehman Brothers said. [more]
From the HomeDepot Conference Call: [more]
Residential Foreclosures Skyrocketing. State Sales Tax Revenues Falling. Announced Job Cuts Rising. Dollar at Record Lows. Mortgage Rates Rising. ABX index crashing. Corporate Bond Spreads widening. Oil prices at records highs. Consumer Confidence at multi year lows. Inflation at 25 year highs. Commercial Real Estate values crashing. FDIC preparing for many more bank failures. Bad Debt writeoffs skyrocketing. Retail Sales decreasing. Auto Sales decreasing. Restaurant Sales Decreasing. Credit Card defaults rising. Home Sales decreasing. Bank Profits Imploding. Federal Deficit Exploding. Municipalities paying double digit interest rates. Municipalities slashing budgets. Technology revenues slowing in January. [more]
This moring on CNBC, Sam Zell thought the housing market would bottom in Spring. [more]
We all know the story of the frog on boiling water. [more]
“As builders try to unload finished inventory or secure sales contracts to build new ones, they increasingly are competing against homes they recently sold but have come back on the market as resales, either from people seeking to avoid foreclosure or from banks that have seized properties.”
“Lenders, anxious to rid their books of foreclosure homes, tend to slash prices significantly lower than what it costs builders to construct a similar home, said Jack McCabe, of McCabe Research & Consulting in Deerfield Beach.” [more]
The following is an excerpt from a MarketWatch article: [more]
It's only the subprime borrowers. [more]
"Nearly all the top home equity lenders I know of are doing this or considering doing this," said Joe Belew, president of the Consumer Bankers Association, which represents some of the nation's largest home equity lenders. [more]
When considering whether giving a going concern warning, the article cited in the previous post stated the following: [more]
For what one expert thought was the first time, the number of monthly foreclosures exceeded the number of monthly home sales in California in January, according to data compiled by two research companies. [more]
SPF's Audited 10K should be out in the next few weeks. Will its auditors issue a "Going-Concern" warning? [more]
You may be hearing more of this term in the upcoming weeks and months. [more]
Homes being foreclosed in record numbers, Who Cares? [more]
Merrill paying around 10% for equity injection.
Citi paying around 10% for equity injection.
UBS paying around 10% for equity injection.
Hospital systems paying over 12% for short term money.
Port Authority of New York paying 20%.
YOU THINK YOU ARE A BETTER CREDIT RISK THAN THE ABOVE? HOW MUCH WILL YOU BE PAYING SOON?
In the past seven years, never has our economy been so dependant on consumerism. Especially in the area of home purchases/speculation and related purchases. And when the consumer did not have enough savings to support the habbit, our lending institutions were more than happy to loan out practically infinite amounts to create a boom like none we have seen before. [more]
Soleil Securities Group Inc. analyst Scott Tilghman said in a note to investors on Wednesday that Sharper Image's filing was not a surprise. Tilghman, who had rated Sharper Image "Hold," said he was discontinuing coverage of Sharper Image.
"We find no reason for investors to be involved with Sharper Image in the near term," he wrote. [more]
A city in California on the brink of bankruptcy. Its police officers and firefighters want to retire to lock in retirement benefits. Pension plans around the country underfunded as millions preparing to retire. Now the municipal bond market locked up and people can't access their capital without taking huge losses. [more]
We know credit card rates are going up. [more]
I have a friend who has $100K invested in a nationally recognized muni bond fund mutual fund housed at a well known brokerage firm. His broker called him unsolicited today and told him the fund was illiquid.
Just curious whether anyone has heard of a similar story?
Greenspan warns U.S. economy near recession [more]
A couple of headlines from MarketWatch: [more]
Credit Markets are hitting new lower lows. Many classes affected including investment grade stuff. Once you factor swaps, we are talking about multiple times larger market compared to the equity markets. [more]
1. In a relatively short period of time, loan trillions and trillions of dollars to individuals, corporations, and municipalities backed by "bubble" valued assets and "bubble" cash flow projections. [more]
Is credit tighening turning into a crisis on a number of fronts: [more]
The problem in a nut shell: [more]
Objectively, has anyone noticed what has happened to the value of the following assets: [more]
WASHINGTON (MarketWatch) -- Consumer optimism is falling at the fastest pace since the 1990-91 recession, according to a weekly survey released Tuesday by ABC News and the Washington Post. The ABC/Post consumer comfort index fell four points to negative 37 this past week, the lowest reading since November 1993. [more]
Corporate Loans are not getting funded. [more]
Feb. 11 (Bloomberg) -- Bond insurance sold by MBIA Inc., Ambac Financial Group Inc. and Security Capital Assurance Ltd. is backfiring on counties, universities and hospitals across the U.S., more than doubling some borrowing costs. [more]
D.R. Horton will be liquidating homes at 50% OFF in the next few weeks in CA. The following is an excerpt from BigBuilder Online: [more]
It appears that there were a number of failed municipal bond offerings between Friday and today. If our cities can't get funding, well not much more need be said. Banks are making it harder to get a mortgage. Credit cards are being revoked. HomeEquity Lines are being shut down. Defaults keep growing and forclosures still in full swing. [more]
SPF's board just granted a few of its senior executives over $2 million in bonuses. [more]
In 2000, the average American family income was X. [more]
After its most recent earnings report, a number of Wall Street Equity Analysts upgraded SPF. That fact that it was a number is what is potentially a little unsettling. [more]
As this blog is written, unemployment is being reported at something less than 5%. [more]
In 2000, the income of the average American family was somewhere around $50-60K. [more]
It is not just homeowners in financial hot water. You know various real estate companies are having trouble paying the bills, too. Attorney Evan Smiley is a bankruptcy/insolvency specialist at Weiland, Golden, Smiley, Wang Ekvall & Strok in Costa Mesa and co-author of “Bankruptcy for Businesses,” published last year. We’ve heard he’s been plenty busy lately … [more]
We know they ended the year in violation of their debt covenants for the third time. Any baseball players out there? [more]
Are things distressed out there? Let's take a look: [more]
Consumer Confidence sank to a new low according to The RBC Cash Index. The reading was 48.5 versus last months low of 56.3 and the lowest reading since the index began in 2002. [more]
Over the past five years, consumers, business, and government borrowed trillions. We went nuts on mortgages, home equity loans, credit cards, junk debt, securitized debt, collateralized debt, tranched debt, municipal debt, commercial real estate debt, just to name a few. The problem is that many of these loans were made with little regard with the borrowers ability to repay. Now many borrowers can't repay and loans are defauting. [more]