Market News Feed: Fed Tackles Economic Woes
Bloomberg.com: A Slice of Manhattan for a String of Beads?
Analysts say that, with the Fed-brokered purchase of Bear Stearns for about $240 million, JP Morgan stands to gain the firm’s six-year-old, 45-story office building, which currently is valued at $1.5 billion, or more than $1,200 a square foot. According to a JP Morgan spokesperson, the purchase also is prompting JP Morgan to reconsider its plans to build a $2 billion, 40-story skyscraper at the Ground Zero re-development site. Bear Stearns stands across the street from JP Morgan’s midtown Manhattan offices and offers underground access to Grand Central Terminal, where nearly 1,000,000 commuters travel daily
Reuters: Residential Rentals Soar from Grounded Markets
As the market for offices, retail space and lodging falters, and the foreclosure rate rises among homeowners, a Pricewaterhouse Coopers survey finds that demand for rental apartments is surging ahead, as a growing number of people suddenly find themselves competing for rental units.
Boston Globe: Tsunami Hits Wall Street
The Fed is scrambling to avert a total global financial crisis, but the turmoil on Wall Street already is hitting consumers, businesses and homeowners. The Standard & Poor’s 500 index is down 13.1 percent so far in 2008, and the dollar has plummeted against foreign currencies.
MarketWatch: Major Rate Cut Ahead
The Federal Reserve is expected to orchestrate a rare cut of one percentage point in interest rates before the policy-setting Federal Open Market Committee convenes amid economic turmoil on Wall Street.
Fortune: Mortgage Crisis Intensifies
A crisis that began in subprime lending is likely to continue its domino-effect, leveling markets — and the economy — until 2010, New York Times columnist and economist Paul Krugman predicts. This is likely to result in an average property value drop of 25 percent for homeowners, he says in this interview with Fortune’s Jia Lynn Yang about the economy, home prices, and the future.
MarketWatch: U.S. Home Builders’ Confidence Remains Low
The National Association of Home Builders and Wells Fargo housing market index remained at 20 in March, close to December’s all-time low of 18. Analysts say that the index shows that 20 percent of home builders have a positive outlook and that perception has held steady for nearly a year.
CNNMoney.com: Fed Strives to Neutralize Mortgage Turmoil
The Fed reports to consumer advocates that it is working to curb unfair lending practices to protect adjustable rate mortgage (ARM) holders by moving to ban lenders from issuing loans that borrowers cannot repay.
Studies: Lenders Remain Uncompromising on Mortgage Rates
Most homeowners who have trouble paying their mortgages remain unable to convince lenders to modify their loans, according to the California Reinvestment Coalition. The organization has been tracking homeowners who seek help with their mortgage problems woes, culminating in two reports: “The Chasm between Words and Deeds” and an updated version of the report titled “The Growing Chasm Between News and Deeds.” Both documents report on nonprofit home loan counseling agencies in California who are working to help families keep their homes. The latest word is that 72 percent of these agencies report that foreclosure is a very common outcome for people who seek their help, up from 57 percent in the first study.
Associated Press: Frustrated Homeowner Sells Creatively
A Colorado woman whose home has failed to sell for three consecutive Summers has decided to award her home to the winner of her essay challenge. So far, she’s made $5,000 in entry fee levies, with applicants all vying for her four-bedroom home valued at more than $169,000.
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