Gov. Spitzer has proposed an economic stimulus for upstate. He also gave an upstate “state of the state” message for 2008. All this leads one to believe there are two New York states — a downstate and an upstate. Time to consider a separation of the two. Time for upstate Democrats to stop paying lip service to the notion we are one. President George Bush (the lesser) has proposed an economic stimulus. As one national talk show host has characterized it, we take Chinese money (the same money financing our wars) and give it to the American people. The people go out and spend it at Wal-Mart and return it to China. America sinks deeper in debt, the politicians appear to be doing something and China grows economically. Money is the root of all evil for Americans. New York would sort itself out if taxes were not so high and uncontrolled spending (pork) were brought under control. This is not a partisan issue; stupidity is rampant in both parties. They both play the same games, calling their greed by different names. The federal government would sort itself out if taxes were aligned with realistic spending, pork were abolished and America stopped imitating the Roman Empire. Both the New York and federal governments impose regulations in all the wrong places. This makes business and investment difficult. The candidates running for office do not refl ect an understanding of the issues. The candidates prefer not to “understand” the issues.This ensures maintenance of the status quo. Nothing will change till we fall in on ourselves. EDMOND DAY Rotterdam
Well said Mr. Day...very well said. Our country must stay economically strong in order for the other countries to survive. I believe we are their biggest customer globally. I doubt that this will happen, but once everyone gets their 'stimulus check'....just dump it into your savings or perhaps a safe at home, cookie jar or under a mattress.
Once everyone gets these checks, and even if we spent them ALL, it would only go back to the status quo. Prices are not going to go down, gas prices will remain the same, our bills will remain the same and our wages will remain the same. It appears that we are just putting off the inevitable. So at least if we cash these checks and hang on to the money(our tax money), we will have something to fall back on.
I guess that all levels of government just don't get it. They must reduce spending and cut taxes!!!!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Turbulent times Economic troubles have varied impacts on borrowers and investors BY NANCY TREJOS The Washington Post
WASHINGTON — The stock market is plummeting, the housing market is tanking and talk of recession has reached a fevered pitch. So what does this mean for the American consumer? If you’ve got a mortgage, is it a good time to refinance now that the Federal Reserve has slashed the federal funds rate? If you’ve got credit card debt, will your rates decrease? And what about the stock market? Buy, sell or sit tight? The good news is, you should see lower interest rates on student loans, credit cards, home-equity lines of credit and some mortgages. But keep in mind that the subprime mortgage meltdown has produced a tighter credit market. That means you will need solid credit and, in the case of refinancing, enough equity in your home to benefi t. Investment strategies depend on your stage in life, but financial advisers said they are giving their clients, regardless of age, one simple piece of advice: Stay calm. If you’ve got a diversified, not-too-aggressive financial plan, you should be able to ride out the turbulence. “The worst thing anyone can do is react to these market events,” said Fran Kinniry, a principal at Vanguard Group. Here are some ideas for three distinct age groups:
Time on side of younger investors When it comes to investing, the general rule is the younger you are, the more risk you should be willing to take on. Put more in stocks, less in fixed-income investments. As you grow older, financial advisers say, you should gradually shift money from stocks to less risky investments like municipal bonds and certificates of deposit. So it would seem that at a time when the market is in a downward spiral, investors in their 20s or 30s would be the hardest hit. Maybe so, financial advisers said. But if you’re young, don’t panic. Time is on your side. “If you are thinking about the money you are investing today and you’re not going to be using it for 40 or 50 years, what happens in the course of a week or a month or even a year isn’t all that relevant,” said Stuart Ritter, a financial planner with T. Rowe Price in Baltimore. Planners said you should have a financial plan in place at any age. That plan should not change, regardless of the volatility of the market. “The market is cyclical,” said Heather Evans, vice president for wealth management for Merrill Lynch in Vienna, Va. “It’s to be expected that you will have corrections and turmoil.” If you are a young investor, you should not shift any of your money out of the stock market, advisers said. If your goal is to save for retirement, you should keep most, if not all, of your money in the market, Ritter said. In fact, stocks typically have outperformed fixed-income investments by about 5 percent annually, said Fran Kinniry, of Vanguard Group. Now might even be the time to buy more stocks if you can get them cheaply, said Ambler Cusick, a financial adviser in Smith Barney’s Washington office. “When clothes go on sale, do you run out of the store screaming or do you buy the outfi t you’ve been looking at on the rack for weeks?” Cusick said. That said, the stocks you have should be diversified, advisers said. Ritter suggested that 60 percent of your stock portfolio go to large-cap stocks, or shares of large companies; 20 percent to small- and mid-cap stocks; and 20 percent to international stocks. If you plan to buy a house in two years, you should make sure any money you were hoping to have for a down payment is not in stocks. Instead, advisers said, that money should go into a money-market fund, which is less risky. But young investors should also think beyond the stock market, advisers said. If you’re saddled with a lot of debt — be it in student loans, car payments or credit cards — you should use some discretion. “I think the common mistake for young people out of school is to start investing before putting together savings reserve,” said Helen Modly, executive vice president of Focus Wealth Management in Middleburg, Va. “You shouldn’t invest in stocks as much until some of your debt has been paid off and you know you’ll able to put new tires on your car.” You should also be putting up to 15 percent of your salary into your 401(k) retirement plan. That should not change with the market, advisers said. Also continue to plan for contingencies. Keep an emergency fund with three to six months of expenses, Ritter said.
Middle-agers have greater resources and responsibilities The market’s turmoil may be especially unsettling for middle-aged homeowners. For good reason, too: Unlike recent stock market fluctuations, investors in their 40s and 50s are suddenly seeing the value of their homes decline along with their stock portfolios. They are probably in their maximum earnings range but may have more financial responsibilities — buying a second home, switching jobs, caring for elderly parents, paying for a child’s wedding. And they need to have two big nest eggs: for their children’s education and their own retirement. “That’s probably compounding the worry,” said Liz Pulliam Weston, a personal finance expert and author. For those worried about protecting college savings, if you haven’t chosen an age-weighted investment strategy, which shifts more money to cash and bonds as your children get closer to college age, do it now, Weston said. When it comes to retirement savings, don’t fret. People should be prepared to live until they are 95, so a middle-aged investor still has a ways to go. In fact, some financial planners are urging investors to look on the bright side of the shaky market. Blue-chip stocks — notably diversified, well-managed large companies — can be bargains now. “Don’t put your head under the covers,” said Brian McQuade, managing partner of McQuade Brennan, a public accounting and consulting firm in Washington. “This is the time to buy.” If a steady stream of income is in your retirement future — like Social Security or a pension plan — you can be more aggressive in investing than someone who won’t have a fixed income in retirement. And if you have a 401(k) plan with employer matching, “definitely don’t turn down free money,” said Carl Emerick, a financial adviser with Sentinel Wealth Management in Reston, Va. Financial planners said the older you are, the less you should have in stocks and the more in fixed-income products. Stuart Ritter, a financial planner with T. Rowe Price in Baltimore, said that at about age 55, you should have only about 70 percent of your money in stocks. “What that means is you’re reading about all this stuff in the stock market but not all your money is in stocks,” he said. “One of the things to bear in mind is the volatility you read about in the newspaper might not be your personal volatility.” If you’re still feeling antsy about your financial security, direct that energy to cutting expenses by paying down credit cards or looking into refinancing your mortgage. But be smart about it. In the tight credit market, you must have solid credit and a conventional mortgage and plan to stay in your home for at least a couple of years. If you can pay off the cost of refinancing within 18 months, it’s a no-brainer, Weston said. This is also a good time to review financial plans to make sure they still match your goals. Strike a balance within your portfolios. Remember not to have too much in stocks while also not becoming too conservative, said Fran Kinniry, of Vanguard Group. Last, if the anxiety continues to build, Helen Modly of Focus Wealth Management in Middleburg, Va., has a cure that takes two seconds: “Turn off the TV.”
Retirees should be prepared financially
The stock market heads south just as you’ve retired, or are about to. It’s the worst-case scenario you’ve always feared. Is it time to scour the helpwanted ads? Do you have to put your post-work life on hold? Not if you’ve taken the time to prepare, financial planners said. Retirees and wouldbe retirees should have enough cash on hand to cover expected and some unexpected expenses for a year, and possibly up to three years, said Marjorie Fox, of Fox, Joss & Yankee, a financial planning and investment firm in Reston, Va. The whole point of the cash cushion is to keep from having to sell assets at the market bottom. “It’s absolutely the worst time to do it,” said Mary Malgoire, president of the Family Firm in Bethesda, Md. If the market downturn is affecting payments from a variable annuity, you may want to consider cutting back temporarily or falling back on cash reserves, Fox said. And falling home values mean that now may not be the time for a reverse mortgage — a loan against your home that is paid back when you die. Ideally, even retirees and those near retirement should not let volatility drive them out of the equity markets. Brett Hammond, chief investment officer for TIAACREF, said his firm’s Lifecycle Funds allocate as much as 50 percent of retiree portfolios to stocks, with the rest in fixed-income investments such as bonds. “There has to be still some element of growth in that retirement plan,” said Ambler Cusick, of Smith Barney. “They can’t just go to cash or bonds or CDs 100 percent. All those things are strictly securities that pay an income but have … no real growth prospects.” The challenge is “trying to find a balance between market risk and purchasing power or interest rate risk. You want your money to last,” said Judy Redpath, of Vista Wealth Strategies in Reston. If the Dow’s ups and downs compel you to sell, you face an even tougher decision: when to get back in. Chances are, if you are a cautious investor, you will wait until stocks rebound, but by then you will have missed out on the recovery and will buy high and almost certainly lose money. If you’re a retiree, that money is difficult to replace. Stuart Ritter, a financial planner with T. Rowe Price in Baltimore, said people should not react to market events. “The consequence of moving money out of the stock market and into cash is that your average return goes down, which means you either need to save more pre-retirement or you need to spend less if you are in retirement. If you’re worried about the stock market doing poorly, your response should be to save more,” he said. One way to preserve cash is to cut down on expenses. “I wouldn’t take a vacation around the world right now,” said Alexandra Armstrong, of Armstrong, Fleming & Moore in Washington. For those thinking about retiring in the next few years, it isn’t too late to work out a plan. After all, figuring out how much money you will need in retirement is a complex calculation that depends on how much you’ve saved, whether you have a pension or an annuity, the value of your home, and your lifestyle. “Situations like this highlight the need to plan ahead ” Malgoire said
By MARTIN CRUTSINGER, Associated Press Monday, January 28, 2008
WASHINGTON -- Sales of new homes plunged by a record amount in 2007 while prices posted the weakest showing in 16 years, demonstrating the troubles builders are facing with a huge backlog of unsold homes.
The Commerce Department reported Monday that sales of new homes dropped by 26.4 percent last year to 774,000. That marked the worst sales year on record, surpassing the old mark of a 23.1 percent plunge in 1980. The government reported that the median price of a new home barely budged last year, edging up a slight 0.2 percent to $246,900, the poorest showing since prices fell by 2.4 percent during the 1991 housing downturn. The new report reinforced the view that housing is currently undergoing its worst downturn in more than two decades, with the slump threatening to surpass in some ways the severe housing recession of the early 1980s. The housing weakness has dragged down overall growth and sent shockwaves through the rest of the economy including the financial sector, which is dealing with billions of dollars in losses in subprime mortgages. Some analysts are worried that the fallout could become so severe it will drag the entire country into a recession. The Federal Reserve unexpectedly cut a key interest rate by the largest amount in more than two decades last week following an emergency meeting, and it is expected the Fed will cut rates further at a regular rate-setting meeting this week. The 26.4 percent drop in sales for 2007 represented weakness in every part of the country except the Northeast, where sales posted a small 1.6 percent advance. Sales recorded declines of 32.2 percent in the West, 26.7 percent in the Midwest and 26.3 percent in the South. The year ended on a weak note with new home sales in December falling by 4.7 percent after an even sharper 12.6 percent decline in November. While the median home price for the entire year was up slightly, the median price of homes sold in December was $219,200. That was down 10.4 percent from a year ago, the biggest 12-month price drop in 37 years. Analysts said that prices will likely keep falling in early 2008 as builders continue to struggle to work down the glut of homes. It would take 9.6 months to eliminate the backlog of unsold new homes at the December sales pace, the longest stretch of time since the month's supply stood at 10.3 months in October 1981. The severe credit crunch that hit in August has made the troubles in housing worse because it has prompted banks and other lenders to tighten their standards, making it harder for prospective buyers to qualify for loans. Also adding to the problems facing prospective sellers is the rising tide of mortgage defaults, which are dumping more homes on an already glutted market. The big fall in new home sales followed earlier reports that sales of existing homes fell by 13 percent in 2007, the biggest drop since 1982, while construction of new homes dropped by 24.8 percent last year, the biggest fall since a record decline in 1980.
Both the New York and federal governments impose regulations in all the wrong places. This makes business and investment difficult. The candidates running for office do not refl ect an understanding of the issues. The candidates prefer not to “understand” the issues.This ensures maintenance of the status quo. Nothing will change till we fall in on ourselves.
just a small implosion(hopefully)
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
CAPITAL REGION Home sales cool, but prices remain stable BY JAMES SCHLETT Gazette Reporter
The heated years of the Capital Region’s housing boom became a cool memory in 2007, with home sales declining to their slowest pace since 2004, according to statistics released Monday by the Greater Capital Association of Realtors. Area Realtors recorded a total of 9,726 closed single-family home sales last year, falling 8 percent short of 2006’s record of 10,524. During the same period, the area’s median sale price rose 2 percent to $192,500. Even though a credit crunch, high energy prices, and other economic woes threw a wrench in the nation’s housing industry, area Realtors managed to post their fourth-best annual sales results since the Colonie organization started tracking sales in 1988. And while they were pleased to see home values rise — bucking the nation’s downward trend — prices increased only 2 percent, their slowest rate since 1999’s 1 percent uptick. “The statistics we’d like homeowners to notice is that even with a slowing market homes have held their value, contrary to what we are hearing from other parts of the country,” said GCAR President Marie Bettini. But the prices of homes in Saratoga County — once the region’s leader in terms of sales and value growth — did not hold their own in 2007. The county’s median sale price slipped 1 percent to $256,000. Sales were also down 9 percent to 2,548. That is a significant change from 2003, when sales rose 21 percent and home values increased 10 percent. Schenectady County took the biggest sales hit last year, with its annual sales pace slowing 16 percent to 1,560. Yet it managed to record one of the largest gains in home value growth, with the median sale price increasing 3 percent to $162,500. Last year ended without a bang regionwide, as sales in December plunged 19 percent to 681, compared with a year earlier. But during the period, the monthly median sale price rose 4 percent to $188,000. “It pretty much is as expected. We would have like to have seen it be a lot more active, but it wasn’t. It was still a good market,” said GCAR Chief Executive Officer James Ader. Nationally, total home sales — including single-family, condominiums, townhouses and cooperatives — slumped to 5.65 million, down 12.8 percent from 2006’s record high of 6.48 million. Those results made 2007 the fifth-best year on record for Realtors nationwide. Over the year, the U.S. median sale price fell 1.4 percent to $218,900, the National Association of Realtors announced last week. With rates for jumbo loans standing above those for conventional mortgages, NAR offi - cials believe the nation’s housing market could get a boost if lawmakers raise the limit for regular mortgages to $625,000 from $417,000. The Washington-based organization said that 50 percent increase in the loan limit on regular mortgages would increase home sales by 350,000, reduce foreclosures by up to 210,000 and increase economic activity by $44 billion. NAR expects total U.S. home sales to inch up this year to 5.7 million and to 5.91 million in 2009. Reach Gazette reporter James Schlett at 395-3040 or jschlett@dailygazette.net. Housing numbers A look at closed singe-family sales and median sale prices in greater Capital Region counties in 2007 and 2006: Regionwide 9,726/10,524/-8% $192,500/$189,000/2% Albany 2,476/2,611/-5% $201,000/$197,500/2% Montgomery 247/265/-7% $110,000/$106,000/4% Rensselaer 1,276/1,438/-11% $174,900/$172,000/2% Saratoga 2,548/2,792/-9% $256,000/$257,700/-1% Schenectady 1,560/1,857/-16% $162,500/$158,000/3% Schoharie 246/254/-3% $134,400/$137,000/-2% SOURCE: GREATER CAPITAL ASSOCIATION OF REALTORS
Working poor feel pinch as wealthy cut back on luxuries
Retail, manufacturing and other industries rely on high-income consumers for a large part of their sales. Dollar share of overall consumer spending attributed to top 20 percent of households by income Footwear 33.1% Audio and visual equipment 33.3% Entertainment 33.6% Food 33.6% Apparel 37.9% Total consumer spending 39.0% Alcohol 39.1% Major household appliances 43.5% Owned housing 46.0% Furniture 47.1% New cars and trucks 53.1% SOURCE: Bureau of Labor Statistics
BY ANNE D’INNOCENZIO The Associated Press
NEW YORK — It’s hard to feel sorry for well-heeled shoppers whose idea of tough economic times is passing on $1,000 Burberry raincoats or that $300 limo ride while the working poor skimp on vegetables and take the bus. But economists say that recent signs of cutting back by the affluent could hurt the economy and deliver even more pain to lower-income workers, who are dependent on their business and fat tips. Nathan Warren, a limo driver, knows this first hand: He has seen his monthly wages drop by 40 percent to about $1,800 since late last year. His work week at Newport Beach, Calif.-based Classy Ride Limousine Service was reduced to three days from five amid slow business. “I have to struggle to get by. I am pinching pennies,” said Warren, 30, a Costa Mesa, Calif. resident. “I am eating more cereal and am not buying clothing.” Cutbacks by the wealthy have a ripple effect across all consumer spending, said Michael P. Niemira, chief economist at the International Council of Shopping Centers. That’s because American households in the top 20 percent by income — those making at least $150,000 a year — account for about 40 percent of overall consumer spending, which makes up two-thirds of economic activity. Niemira expects the retail sector, whose growth was fueled in part by strong gains at luxury chains, will struggle to eke out a 1 percentage sales increase in stores opened at least a year during the next few months. That’s below the 2.1 percent average for 2007 and 3.7 percent for 2006. Just look at the cutbacks by Dali Wiederhoft, a 52-year-old marketing executive from Reno, Nev., made skittish by a volatile stock market, a 20 percent decline in her home value and recession fears. Over the past three months Wiederhoft pared her spending on clothes to $500 per month from about $3,000; that means no more Jimmy Choo shoes and David Yurman jewelry. Her cutbacks also included canceling the services of a cleaning woman and a lawn care company. She also plans to trade in her BMW for a Ford when her lease expires in about a month. “This is a time to have cash, not to spend. So, I’m cutting wherever I can,” she said. Such reined-in spending seems to be the end of a winning streak for luxury retailers that once appeared immune to the economic slowdown. Tiffany & Co. and Williams-Sonoma Inc. both reduced their earnings outlooks and Burberry PLC said it may miss its 2008 profi t forecast. Coach Inc. reported a 1.1 percent decline in same-store sales at its North American stores for the second quarter ended Dec. 29, 2007 and Compagnie FinanciGere Richemont SA, the Swiss parent of Cartier and Baume & Mercier, reported a slowdown in holiday sales growth. Soaring home values had made upper-middle class shoppers feel wealthy in recent years, causing them to trade up to $500 Coach handbags and $1,000 espresso makers, but a housing slump has wiped away their paper wealth. The woes are creeping into even the high-end luxury sector, as affluent shoppers are rattled by the turbulence in the financial markets. American Express Co., whose customers are generally affluent, said it expects slower spending and more missed payments on credit cards throughout 2008. The economy needs affl uent shoppers to spend with enthusiasm. According to the government’s latest survey of consumer expenditures, the top 20 percent of households spend about $94,000 annually, almost five times the bottom 20 percent and more per year than the bottom 60 percent combined. Then there’s also the multiplier effect. When shoppers splurge on $1,000 dinners and $300 limousine rides, that means fatter tips for the waiter and the driver. Sales clerks at upscale stores, who typically earn sales commissions, also depend on spending sprees of mink coats and jewelry. But the trickling down is starting to dry up, threatening to hurt a broad base of low-paid workers like Warren, the limo driver. Classy Ride Limousine Service, which caters to clients with an average household income of $200,000, has suffered a 10 percent dip in business last year, according to general manager Jason Lattier. “We’ve been really slow,” said Lattier, noting that 12 out of his 20 drivers are now working three days per week. With the average driver earnings $150 a day in tips and wages, that means a weekly shortfall of $300. In Chicago, Montopoli Custom Clothiers, a tailor to consumers willing to spend $3,000 to $30,000 for a custommade suit, has also seen business suffer. Sales dropped 10 percent in October and November from the year-ago period, according to president Jeff Landis. He noted that 20 percent of his clients, who include commodity traders and CEOs of Fortune 500 companies, delayed buying suits for fall. “I consider them a leading economic indicator,” said Landis. He’s taken more aggressive measures like increasing calls to clients to get them in the store, but hasn’t laid off anyone. “I’m not at the point of panic,” he said. Overall, the super wealthy — consumers with a net worth of more than $10 million — are still splurging on $1 million boats, $10 million diamond jewelry and other luxuries, according to Milton Pedraza, chief executive of the Luxury Institute, a research institute based in New York. But this crowd could stop splurging, simply because they’re not in the mood. That happened right after the Sept. 11, 2001 terrorist attacks, though luxury spending rebounded soon after. Jim Taylor, vice chairman of marketing consultancy The Harrison Group, said he’s seeing a marked shift in the way people look upon spending. “There’s a real decline in enthusiasm for self-indulgent purchasing,” said Taylor. Orrin Feingold, a New York entrepreneur, decided to get out of his lease on a Volvo XC90 sport utility vehicle because he realized he didn’t need to spend $650 a month and another $500 on parking. Feingold, 39, a former chief financial officer of a health care company, said the uncertain financial climate is making him think twice about spending. “I want to be more practical,” he said. Luxury stores, which have a big presence in New York, are closely monitoring Wall Street. The financial industry accounts for about 20 percent of wages in New York City, according to the state comptroller’s offi ce. Alan Johnson, managing director of Johnson Associates, leading executive compensation consultancy, expects bonuses to fall as much as 30 percent this year. But more importantly, massive layoffs on Wall Street could cause the affluent to pull back even more. Meanwhile, Warren, the California limo driver, is focusing on day-to-day survival. Faced with a monthly rent of $1,300, he has no choice but look for a full-time job. He’s had training as a machinist before, but now things are too unsettled. “There is so much uncertainty in the economy from what I see, so I am not sure where I am going to look,” he said.
OK, so look at this list and tell me what's special about it.
Quoted Text
Retail, manufacturing and other industries rely on high-income consumers for a large part of their sales. Dollar share of overall consumer spending attributed to top 20 percent of households by income Footwear 33.1% Audio and visual equipment 33.3% Entertainment 33.6% Food 33.6% Apparel 37.9% Total consumer spending 39.0% Alcohol 39.1% Major household appliances 43.5% Owned housing 46.0% Furniture 47.1% New cars and trucks 53.1%
Footwear, Audio and visual equipment, Apparel, Alcohol, Major Household appliances, Furniture, New Cars and Trucks.
All major ticket items that we have succeeded in shipping the jobs to create these products overseas. And we wonder why nobody can afford to buy anything anymore?
It's just a vicious circle. Americans are expected to buy with things that were outsourced to other countries. When now we Americans, who have lost all of these outsourced jobs, don't make enough money to buy these items since the good paying jobs are now in other countries that supply America with the goods. Get it?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
FBI probing 14 companies over subprime lending BY ALAN ZIBEL The Associated Press
WASHINGTON — The FBI on Tuesday said it is investigating 14 companies for possible accounting fraud, insider trading or other violations in connection with home loans made to risky borrowers. Agency officials did not identify the companies under investigation but said the wide-ranging probe, which began in spring 2007, involves companies across the financial services industry, from mortgage lenders to investment banks that bundle home loans into securities sold to investors. The Federal Bureau of Investigation is working in conjunction with the Securities and Exchange Commission on the corporatefraud probe, said Neil Power, chief of the FBI’s economic crimes unit in Washington. As the nation’s housing crisis worsens, there has been a dramatic spike in the number of mortgage fraud cases under investigation. An agency spokesman said 1,210 such cases are open, up from roughly 800 a year ago. The announcement comes weeks after authorities in New York and Connecticut said they are investigating whether Wall Street banks hid crucial information about highrisk loans bundled into securities sold to investors. Power said the FBI is looking into the practices of so-called subprime lenders, as well as potential accounting fraud committed by fi - nancial firms that hold these loans on their books or securitize them and sell them to other investors. Referring to certain unnamed bankrupt subprime lenders, Power said there are “some irregularities there that we’re looking into,” including the timing of stock sales by executives. Dozens of subprime lenders have filed for bankruptcy in the past year, most prominently New Century Financial Corp. “We’re looking at the executives to see if they were committing insider trading,” Power said. Power also said law enforcement officials are looking at whether homebuilders manipulated fi nancial statements to inflate revenues. An SEC spokesman declined to comment. The agency has said about three dozen investigations related to the mortgage market meltdown are ongoing. Defaults on subprime loans have risen over the past 12 months and are primarily responsible for the credit crunch that has disrupted global financial markets. Morgan Stanley, Goldman Sachs Group Inc. and Bear Stearns Cos. all disclosed in regulatory filings Tuesday that they are cooperating with requests for information from various, but unspecified, regulatory and government agencies. Officials at the companies either declined to comment, or could not immediately be reached. FBI officials also highlighted what they called a growing pattern of suspected mortgage loan fraud potentially committed when loans were made to shaky borrowers. They cited a surge in “suspicious activity reports” that banks are required to file with the government. The number of those reports is projected to rise to 60,000 this year after hitting 48,000 last year, up from about 7,000 in 2003. “We’re going to have to take a hard look at these things,” said Assistant FBI Director Ken Kaiser. Earlier this month, Connecticut Attorney General Richard Blumenthal said he and New York Attorney General Andrew Cuomo were looking whether banks properly disclosed the high risk of default on so-called “exception” loans — considered even risker than subprime loans — when selling those securities to investors.
And they were worried about Martha Stewart---this was all hidden during the wall street shake up???? PLEASE---those in authority knew and were riding the wave too......it has now crested and arrived at the beach...... >
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Remember the Dems wanted to make it easier and more attainable for lower income Americans to have the American Dream---which they believe is owning a home....there is alot more to the American Dream than owning a home(or 2 or 3 like they do)....it's one thing to attain it and something entirely different to upkeep it......very politically short sighted.....
And dont forget---THEY ALL EAT AT THE SAME TROUGH.....it doesn't matter which party.....just ask Mr.Romney who thinks he will be the 'economy savior'
Dont think any of these folks didn't know about the fire in the kitchen......of course they knew....there are gut instincts and then there is actually taking a pen and connecting the dots.....strung out like druggies on credit......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Sorry folks but even if the banks were looking to line their own pockets........WHAT WERE THESE HOME BUYERS THINKING? There are times when a little common sense and personal responsibility comes into play. But NO...the government, yet again, steps in to be the saviour to the people who were short sighted to begin with.
Should the banks be held accountable? Perhaps. But so should the home owners. No bailing out from me! Like, someone posted here once....'you can't cure stupid'! (or something like that)
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
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