Category Archives: bubble

7th Cir. Opinions

7th Circuit Opinion Summaries courtesy of Justia.com

United States v. Rogan

Bankruptcy, Criminal Law, Government, White Collar Crime

River Road Hotel Partners, LLC v. Amalgamated Bank

Bankruptcy

Bloomfield State Bank v. United States

Bankruptcy, Real Estate & Property Law, Tax Law

Costello v. Grundon

Bankruptcy, Commercial Law, Securities Law

CDX Liquidating Trust v. Venrock Assocs., et al

Bankruptcy, Business Law, Securities Law

Reedsburg Util. Comm’n v. Grede Foundries, Inc.

Bankruptcy, Utilities Law

Kimbrell v. Brown

Bankruptcy, Injury Law

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BoA, GMAC, Chase, and Others Delay Foreclosures

BoA joins a growing number of mortgage companies whose employees signed key documents in foreclosure cases without verifying that information. GMAC Mortgage and JPMorgan Chase have halted 10’s of thousands as well.

The 23 states in which BoA is delaying foreclosures include Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New JerseyNew Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South CarolinaSouth Dakota, Vermont and Wisconsin.
Read the entire article online by clicking here.

New Home Sales Hit Record Low

By Martin Crutsinger of the Associated Press

WASHINGTON — According to the Commerce Department’s report released Wednesday, sales of new homes plunged to a record low in January; underscoring formidable challenges facing the housing industry as it recovers from the worst slump in decades. New-home sales dropped 11.2% to a seasonally adjusted annual pace of 309,000 units, the lowest level on record. In fact it fell to the lowest in nearly a half century. And the drop was a surprise to economists who were expecting a slight increase over December’s pace. While winter storms were partly to blame, sales have fallen for 3 consecutive months despite sweeping and often heavy-handed government support.

Read the Full Article

Posted via email from beyond bankruptcy

small business confidence just ain’t there

Only an economist would call this a positive sign!

Bloomberg - fewer houses upside down in Nov 09

In an article that would only make sense to an economist, Bloomberg reported that fewer people this November have mortgages that exceed the value of their homes – that is, fewer people are “underwater” this year than last. That faint flicker of hope is supposed to mean that overall the housing market is stabilizing.

In related news, I came in 288th in the Chicago Marathon this year – better than I did last year so … I guess that means I’m a winner? Sure, let’s go with that.

So the Recession is Over?

recession's over ... pass it on

This morning I noticed on Yahoo‘s front page that “Worst recession since 1930s hits end.” Let’s just say I’m still skeptical. Unemployment still hovers at 9.9% and that just doesn’t feel like a party. The actual article to which the link refers contains the more subdued headline “Economy growing but recovery could be at risk.” I thought so.

Look, the GDP has grown 3.5% this quarter. That’s good news. According to a New York Times article, this growth rate is on par with average annual growth rate that the U.S. has enjoyed for the last 80 years. Nice. But before we get too excited, this increase in consumer spending (a major component of the U.S. Gross Domestic Product) is driven by the exorbitant expenditure on government programs. And as soon as such programs as Clash for Clunkers end (and they will eventually), economists predict that this recovery may not last.

Basically, the economy grew by 3.5%… but in the long term, it may or may not matter. Does a current quarterly increase in consumer spending mean that consumer spending has actually increased for good? It’s just too early to say.

Housing Prices and Median Income

housing prices and median income