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“Governor Schwarzenegger’s Golden State is in a world of pain. Now it can’t meet its obligations to taxpayers, vendors and others until a budget deal is reached.”
Does this sound familiar? It sounds like what happened not too long ago except this time it’s involuntary. The Governor isn’t just withholding funds in order to make slothlike legislators do their job but this time the state is just plainly and simply, out of cash.
It’s a sobering reality. 2008 saw quite a few large financial institutions close their doors. Thankfully things settled down a bit and banks received some much-needed aid from the government. We were all hoping that bank closures were over — but it appears that 2009 just may see a repeat.
Just a slice of the article: “In a sobering appraisal of the nation’s banking system, President Barack Obama signaled Monday that he will need more money to bail out the battered financial industry. Even so, he said, ’some banks won’t make it.’”
This article focuses on breaking down where the $700 billion bailout is being allocated including the three main categories: “saving wall street,” “saving main street,” and “saving corporate america.” (more…)
President-elect Barack Obama “nominated Peter Orszag to head the Office of Management and Budget (OMB), the president’s chief number-crunching department, and said he sees ‘tough choices’ ahead in determining programs to keep or cut…As OMB director, Orszag, 40, would prepare the president’s federal budget proposals for Congress and analyze the effectiveness of government programs and policies as well as have a big role in determining funding priorities for federal dollars.” (more…)
“Under Barack Obama, more people who don’t pay income tax would get checks from refundable tax credits. John McCain calls it an expansion of welfare.” What do you think? (more…)
It seems like in recent times we hear about a bank being taken over or bailed out every other day. However “not every U.S. financial company is running to the government for help.
Cullen/Frost, a bank in San Antonio, announced it won’t need government money. Other banks may follow suit to show how strong they are.” (more…)
Yet another blow to Countrywide’s stable and “spotless” reputation.
“The Florida attorney general on Monday [June 30, 2008] filed a civil lawsuit against Countrywide Financial Corp. and its chief executive, Angelo Mozilo, alleging the company engaged in deceptive and unfair trade practices. The lawsuite, filed in state court in Broward County by Florida Attorney General Bill McCollum, alleges that Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. It seeks civil penalties and damages.”
Think anything will come of it?
Provided by CNN
WASHINGTON (AP) — President Bush and Congress have settled their differences on terrorist surveillance and Iraq war money. Now attention turns to a potential housing rescue, probably the last major initiative with any chance of passing before lawmakers scatter to campaign for re-election.
Bush has threatened a veto. But lawmakers in both parties say the housing legislation is a political imperative, and negotiators see the makings of a summertime bargain. (more…)
Article provided by: Mortgage News Daily
Testifying before the Senate Banking Committee on risk management and systemic risk, Federal Reserve Vice-Chairman Donald Kohn said that while liquidity pressures have eased, the Federal Reserve must protect the markets from a possible relapse.
Kohn said that home loan losses are increasingly significantly and that the commercial real estate market needs to be supervised closely. Kohn added that the Federal Reserve is working closely with financial institutions by providing feedback to banking officials.
Home. Would you leave your home for $50,000? What if your home was surrounded by other empty homes, barren streets, and yellow lawns? Would you leave then?
In the city of Youngstown, Ohio the city came up with an idea to provide homeowners living in the most desolate and deserted parts of town with incentives to move to livelier areas. This was all in hopes of “remaking” the city while the steel industry, the city’s main employment source, and the foreclosure crisis, get increasingly stronger. City officials were planning on moving current homeowners to more populated areas of town in order to close entire streets, if not neighborhoods, and shut down city services in order to save some much needed funds. City services include street lighting, police forces, garbage pick-ups, and more.
But not many homeowners are biting…I don’t know, would you? (more…)
