Hedge Fund sues banks for $1.2 billion loss tied to subprime + U.S. agency issues 64 subpoenas on private mortgage bonds

[mEDITate-OR:

miss out on all that white collar crime...

While we all have seen the notices of litigation over the subprime RE collapse, these two little items are very interesting.

In the 1st article, is the size of the lawsuit and who is now suing. But, what you might find even more interesting is "The Case" that they have put together. This does not read as though they jumped in bcuz everyone was doing it. They prepared this one - to win. This will be interesting.

The 2nd article is interesting bcuz of who is issuing subpoenas - the FHFA - the regulators of FMae&FMac.

What this proves to U.S. is that when FMae&FMac began to force those who sold bad securities to them to buy them back, it became very clear, very early, that this was going to be A Big Problem. So, the sellers baulked.

Now, the Feds are turning up the pressure.

This, too, will get more interesting.

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Hedge Fund sues banks for $1.2 billion loss tied to subprime
http://news.yahoo.com/s/nm/20100712/bs_nm/us_cambridgeplace_subprime_lawsuit
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U.S. agency issues 64 subpoenas on private mortgage bonds
http://news.yahoo.com/s/nm/20100712/ts_nm/us_fannie_freddie_fhfa
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Rail Traffic softens further in June

[mEDITate-OR:

see that the light at the end of the tunnel is weaker...

not realizing that that does NOT mean the train is backing up...!

What is not nice, however, is that while we were looking good in March & April. Things appear to be more normal in May & June, since traffic usually decline then, for some reason.
But, what we need to watch is the next two months, bcuz if they decline more, we may be in trouble. We might have to grab our knapsacks and start ride'n the rails, again.
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TUESDAY, JULY 13, 2010

Rail Traffic softens further in June

by CalculatedRisk on 7/13/2010 03:20:00 PM

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BLS: Low Labor Turnover in May = Job openings drop in May as hiring stays weak

[mEDITate-OR:

get JOLTed back into reality... by JOLTS...

Once again, while we do get interesting economic articles from both the AP and Economix on the NYTs, it is left to U.S. to find the best charts on Calculated Risk.

If you looked at only the top two lines you would think that hires went way up and separations stayed about the same.

However, when you look at the bottom two lines, you, too, will see that job opening declined, while layoffs & discharges went up.

What another blogger point out to U.S. is that while everyone talks about there being only a few thousand new jobs created, what REALLY is going on, out there amongst U.S., is that there are millions of hires & layoffs & job openings every year = Turnover = JOLTS

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BLS: Low Labor Turnover in May

by CalculatedRisk on 7/13/2010 10:41:00 AM

http://www.calculatedriskblog.com/2010/07/bls-low-labor-turnover-in-may.html
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Job openings drop in May as hiring stays weak
http://news.yahoo.com/s/ap/us_job_openings
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JULY 13, 2010, 11:23 AM

Job Openings Ratio Little Changed in May

http://economix.blogs.nytimes.com/2010/07/13/job-openings-ratio-little-changed-in-may/
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Federal budget gap tops $1 trillion through June

[mEDITate-OR:
June is the month for weddings...
although we might not want to be too wedded to this Pig.

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Federal budget gap tops $1 trillion through June
http://news.yahoo.com/s/ap/20100713/ap_on_bi_ge/us_budget_deficit
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How is Spending Still Strong?

[mEDITate-OR:
not understand another's point of view.
with The Chart to prove it to U.S.
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FRIDAY, JULY 9, 2010
How is Spending Still Strong?
Since Lehman collapsed in September 2008, consumption has remained surprisingly strong in the face of high unemployment (thus lower wages), lower asset values (less ability to tap home or 401k for spending), and a collapse in consumer credit.

How? The government! Less taxes and higher transfer payments (i.e. unemployment / welfare benefits).

http://econompicdata.blogspot.com/2010/07/how-is-spending-still-strong.html
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Corporate America's $2 Trillion Pile of Cash + Hey, corporate misers. Stop hoarding cash!

[mEDITate-OR:

not understand possibly the funniest economic article so far this year....

read on...

This 1st article is both funny and sobering.

The 2nd article being CNN suggests that this is NOT an isolated problem, that nobody is looking @, bcuz they are. Not only are they hoarding, they are NOT investing it to create jobs AND they are not paying back to U.S. as dividends.

So, as Seinfeld asked U.S., repeatedly: "What's up with that?"

The 1st toon is obvious.
The 2nd toon may require you to read the newspaper's Headline.
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Corporate America's $2 Trillion Pile of Cash
http://seekingalpha.com/article/214052-more-money-monday-corporate-america-s-2-trillion-pile-of-cash
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Hey, corporate misers. Stop hoarding cash!
http://money.cnn.com/2010/07/14/markets/thebuzz/index.htm
=========

US/China Currency Report: China International Trade Review - July 2010

[mEDITate-OR:

think things are not all that unbalanced...

but, they are..., mostly with U.S.

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China International Trade Review - July 2010
http://econgrapher.blogspot.com/2010/07/china-international-trade-review-july.html
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US trade deficit widens to $42.3 billion in May, largest gap in 18 months, as imports rise

[mEDITate-OR:
see the trade deficit continue to climb back up....

What we are seeing, for U.S. and Canada, China & Germany is that both exports and imports are expanding. For some like Canada, China & Germany that means their surplus with U.S. expanded. What we are NOT seeing is a collapse of foreign trade.

What is somewhat unexpected is that China's exports to Europe did not collapse, and neither did those from U.S., as a result of the decline in the EURO. If there is an explanation, it must be interesting.
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US trade deficit widens to $42.3 billion in May
largest gap in 18 months, as imports rise
http://ca.news.yahoo.com/s/capress/100713/business/us_economy_1
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Trade Gap in U.S. Unexpectedly
Widened in May to $42.3 Billion
http://www.washingtonpost.com/wp-dyn/content/article/2010/07/13/AR2010071301900.html

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US monthly deficit increased to $42.3bn in May

http://www.finfacts.ie/irishfinancenews/article_1020133.shtml

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US trade deficit threatens double dip and depression

http://www.finfacts.ie/irishfinancenews/article_1020118.shtml
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Housing Market Sees Widespread Price-Cutting + More cuts to asking prices are another signal the recovery may be stalling, according to new data from Trulia.

[mEDITate-OR:

get that sucking feeling..., in ways and places that you don't want to feel it...

What we noticed almost immediately after the expiration of the Buyers Tax Credit application deadline was that what we expected to see prior to the deadline did happen - sellers cut prices to get THEIR property sold.

What also happened, that almost nobody predicted, was that AFTER the deadline, sellers cut prices even more, trying to get their homes sold.

Phoenix

Homes discounted: 33%

Average price cut: 13%

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Housing Market Sees Widespread Price-Cutting
Read more: http://www.time.com/time/business/article/0,8599,2003578,00.html?xid=rss-topstories#ixzz0tfklGCNt

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Housing Discounts On The Rise Again

More cuts to asking prices are another signal the recovery may be stalling, according to new data from Trulia

http://www.forbes.com/2010/07/13/real-estate-home-prices-trulia-personal-finance-asking-price.html
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Mortgage Applications For Home Purchases Hit 1996 Level + Volume Slides 3%: MBA

[mEDITate-OR:

not only know this was incoming, but expect it will continue, for a long time.

As you can see from the 2nd chart's "Green Line"...

from Daniel @ The Atlantic

we have dropped a long way, but to set another record...!!!!

we will have to drop some more. MOG.

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Mortgage Applications For Home Purchases

Hit 1996 Level

http://www.theatlantic.com/business/archive/2010/07/mortgage-applications-for-home-purchases-hit-1996-level/59737/

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Weekly Mortgage Application Volume Slides 3%: MBA

http://www.housingwire.com/2010/07/14/weekly-mortgage-application-volume-slides-3-mba

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WEDNESDAY, JULY 14, 2010

MBA: Mortgage Purchase Applications lowest

since December 1996

http://www.calculatedriskblog.com/2010/07/mba-mortgage-purchase-applications_14.html

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Rockefeller Institute Confirms Rising Retail Sales a Mirage

[mEDITate-OR:
wonder where all the moollah went...

What this article and the charts he borrowed from the Rockefeller report show U.S. is that since income and sales taxes have plummeted, local property taxes have not, yet. That might be bcuz the collapse of RE market values has not been "registered" with the local county auditors & treasurers, yet.

But, Mish's point is that since Cal & NY, the two largest states, have increased their tax rates to raise more revenue..., they have distorted the true impact of & changes in "sales" tax revenues.
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Rockefeller Institute Confirms Rising Retail Sales a Mirage
http://seekingalpha.com/article/214412-rockefeller-institute-confirms-rising-retail-sales-a-mirage?source=email
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US retail sales fell in June - the second straight month of declines - drop 0.5 percent

[mEDITate-OR:

not notice that Daniel and FinFacts in Ireland, of course, had the only chart for retail sales, so far this morning.

And, while Daniel tells U.S. he is not sure, everyone else sees that trouble is brewing...

so, do it and drink your Moanday Mourning coffee..., and look at this.

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Were Retail Sales Up or Down in June?

http://www.theatlantic.com/business/archive/2010/07/were-retail-sales-up-or-down-in-june/59724/

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US retail sales fell in June - - the second straight month of declines

http://www.finfacts.ie/irishfinancenews/article_1020144.shtml

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Retail sales drop 0.5 percent in June

http://news.yahoo.com/s/ap/20100714/ap_on_bi_go_ec_fi/us_economy_12

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More Americans' credit scores sink to new lows

[mEDITate-OR:

not see what must be the most obvious chart in existence this year.

Or

wonder where those subprime & ARM loans are..., now that we need them.

So..., not only are the Banks not making loans, and we are not asking them for loans...

but, we probably can't get one even if we needed it.

Trouble, right here..., in River City...

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More Americans' credit scores sink to new lows

Monday, July 12, 2010; 12:48 AM

NEW YORK -- The credit scores of millions more Americans are sinking to new lows.

Figures provided by FICO Inc. show that 25.5 percent of consumers - nearly 43.4 million people - now have a credit score of 599 or below, marking them as poor risks for lenders. It's unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.
http://www.google.com/hostednews/ap/article/ALeqM5g74qg6iCDzFlCHhjsiBGFIHAiJPQD9GTIVU80
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Why China is putting the brakes on export-driven growth

[mEDITate-OR:
simply not try to understand what the Chinese are up to...
except, of course, making & selling all our Christmas toys to WalMart, again...

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Why China is putting the brakes on export-driven growth
http://money.cnn.com/2010/07/09/news/international/china_export_bubble.fortune/index.htm
======

"JG Bells Oh..., So, Solly, about your loss; very ba-ad, Economic Views"

The economy is so bad that…

1)    I got a pre-declined credit card in the mail...

2)    African television stations are now showing 'Sponsor an American Child' commercials!

3)    Wives are having sex with their husbands because they can't afford Batteries.

4)    I ordered a burger at McDonald's and the kid behind the counter asked, "Can you afford fries with that?"

5)    CEO' s are now playing miniature golf.

6)    Exxon-Mobil laid off 25 Congressmen.

7)    My ATM gave me an IOU!

8)    A stripper was killed when her audience showered her with rolls of pennies while she danced.

9)    I saw a Mormon polygamist with only one wife.

10)    I bought a toaster oven and my free gift with purchase was a bank.

11)    If the bank returns your check marked "Insufficient Funds," you call them and ask if they meant you or them.

12)    McDonald's is selling the 1/4 ouncer.

13)    Angelina Jolie adopted a child from America .

14)    Parents in Beverly Hills fired their nannies and learned their children’s names.

15)    My cousin had an exorcism but couldn't afford to pay for it, and they re-possessed her!

16)    A truckload of Americans was caught sneaking into Mexico .

17)    Motel Six won' t leave the light on anymore.

18)    A picture is now only worth 200 words.

19)    They renamed Wall Street " Wal-Mart Street ."

20)    When Bill and Hillary travel together, they now have to share a room.

21)    The Treasure Island casino in Las Vegas is now managed by Somali pirates.

22)    Congress says they are looking into this Bernard Madoff scandal. Oh Great!! The guy who made $50 Billion disappear is being investigated by the people who made $1.5 Trillion disappear!

        And, finally...

23)  I was so depressed last night thinking about the economy, wars, jobs, my savings, Social Security, retirement funds, etc., I called the Suicide Hotline. I got a call center in Pakistan, and when I told them I was suicidal, they got all excited, and asked if I could drive a truck...

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