Mortgage Delinquencies Soar In The U.S.

NEW YORK (Reuters) - More U.S. consumers are falling behind on their mortgages, an indication that the housing market has yet to hit bottom, a top credit bureau executive told Reuters.

Dann Adams, president of U.S. Information Systems for Equifax Inc, reported that 7 percent of homeowners with mortgages were at least 30 days late on their loans in February, an increase of more than 50 percent from a year earlier.

He also said 39.8 percent of subprime borrowers were at least 30 days behind on their home mortgage loans, up 23.7 percent from last year.

"I'm trying to find optimism in these numbers, but I'm pretty hard pressed to do that," Adams said, despite a recent burst of relatively positive news that has fueled hope that the U.S. housing market has turned a corner.

Late last month the Commerce Department reported that sales of newly built U.S. single-family homes rose to a 337,000 annual pace in February, the highest in 10 months.

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Created by Keiros 1 year 28 weeks ago – Made popular 1 year 28 weeks ago
Category: Business   Tags:

US Economy Suffers Sharp Nosedive

The US economy shrank by 6.2% in the last three months of 2008, official figures have shown, a far sharper fall than had previously been reported.

Plunging exports and the biggest fall in consumer spending in 28 years dragged the figure down from the 3.8% estimate the government gave earlier.

The decline was much worse than analysts had expected.

In 2008 as a whole, the economy grew by 1.1%, the slowest pace since 2001. The Dow Jones was down 1.6% in early trade.

Recession warning

Consumer spending, which accounts for about two-thirds of domestic economic activity, fell by a rate of 4.3% in the final quarter - the biggest fall since the second quarter of 1980. This was a revision of the earlier figure of 3.5%.

With rising unemployment, sliding home values, increasing numbers of repossessions and the slumping value of investments, observers say many US consumers are hanging on to whatever disposable cash they have.

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Created by Keiros 1 year 33 weeks ago – Made popular 1 year 33 weeks ago
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Financial Crisis: Toxic Plans for Toxic Assets

Exit Paulson, enter Geithner with the latest "no banker left behind plan" - aka whatever Wall Street wants, Wall Street gets. Yet, the reception was underwhelming. The Dow plummeted 382 points while investors took shelter in bonds and gold. AP reported that "the new bank rescue plan landed with a thud on Wall Street" as investors worried that no end to the crisis is in sight. Editorial and op-ed commentaries were near unanimously negative and some especially critical.

At a February 9 congressional briefing, lawmakers greeted Geithner with laughter and sarcasm, but most of it is just politics. Bailout opponent Brad Sherman (D, California) asked for details and a dollar amount, but instead got generalities about what he announced the next day - a plan to:

-- "clean up and strengthen the nation's banks;" in other words, spend hundreds of billions more to recapitalize insolvent ones;

-- create a Public - Private Investment Fund to shift toxic assets from them to the public;

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Created by Kevin 1 year 35 weeks ago – Made popular 1 year 35 weeks ago
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The Stimulus Plan: A Detailed List of Spending

The House approved the economic stimulus plan Friday afternoon with a vote of 246 to 183, followed by the Senate with a vote of 60 to 38. Want to know what's in it? You could read the 1,071-page gorilla that passed today. Or you could let us do the work for you. We’ve dissected the beast in two charts – one for spending below, and one for taxes.

The appropriations section of the bill details spending in excess of $311 billion for programs ranging from Pell grants for college students to clean water in central Utah to nearly $100 billion in new transportation and infrastructure projects.

Here’s our earlier chart comparing the differences between the House, Senate, and conference versions of the bills.

To see a certain category of spending provisions, click on one of the following:

  • Accountability
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Created by Kevin 1 year 35 weeks ago – Made popular 1 year 35 weeks ago
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Europe Set For Deep Recession, Economists Warn

Europe's economy is facing its worst recession in at least two decades, economists warned today, after figures showed that the region's economy contracted 1.5pc in the final three months of last year.

The Eurozone economy, whose biggest members are Germany and France, shrank 1.5pc in the fourth quarter compared with the third quarter - a steeper fall than economists had expected. Germany had the worst fall, with the economy shrinking the most since the country was reunified in 1990.

Many of Europe's other economies fared little better during a quarter in which the collapse of Lehman Brothers deepened the financial crisis and helped tip countries into recession. France shrank 1.2pc; Italy was was down 1.2pc and Spain weakened 1pc.

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Created by Kevin 1 year 35 weeks ago – Made popular 1 year 35 weeks ago
Category: World   Tags: