The richers get richer and the rest get screwed.
Mass. foreclosures surge to 6,258 so far in '08
"Lenders have seized 6,258 homes in foreclosure so far this year in Massachusetts, triple the number lost by delinquent homeowners over the same period in 2006, according to data released yesterday."
Lender reward plan suggested
"Companies that collect mortgage payments could earn $500 for every loan they modify to avoid default under a plan developed by the federal regulator of the nation's savings and loans.
As millions of adjustable-rate loans approach reset dates on which mortgage payments will soar, John Reich, director of the Office of Thrift Supervision, says the plan, which would be funded from surpluses in mortgage-backed securities, could lower the default rate for homeowners. If the plan is adopted, it could help offset a worsening credit crisis."
Lenders to be rewarded for refincing my debt?
WTF? I could use that money to pay 'em!
Fed: Growth to slow in '08
"The housing collapse and credit crisis will slow economic growth and nudge up unemployment next year, the Federal Reserve said yesterday."
Freddie Mac loans lead to $2b loss
"The mortgage crisis intensified yesterday as Freddie Mac, the nation's number two buyer and guarantor of home loans, posted its largest quarterly loss ever and warned that it may need to curtail its business unless it can raise fresh capital.
It also sent a shudder through the mortgage market since Freddie's loss was even larger than the $1.4 billion quarterly deficit of Fannie Mae, its bigger government-sponsored competitor
"This is a very, very difficult time. This is not happy news," Freddie Mac's chairman and cief executive, Richard Syron, said in a conference call with Wall Street analysts."
Dollar slips to a record low vs. euro"The dollar slumped against almost all major currencies yesterday."
Fed Expects Slowdown to Deepen
"The Federal Reserve expects economic growth to slow sharply next year, and policy makers there are worried that even this forecast may prove too optimistic, according to an assessment that the central bank released on Tuesday."
F.D.A. Investigates Quit-Smoking Drug
"WASHINGTON, Nov. 20 (AP) — Government scientists are investigating whether a drug from Pfizer used to help smokers quit cigarettes also increases suicidal thoughts and violent behavior.
The Food and Drug Administration said on Tuesday that it had received reports of mood disorders and erratic behavior among patients taking Chantix, Pfizer’s prescription drug used to help quit smoking.
The F.D.A. said it was still gathering information about the drug, but advised doctors to closely monitor patients taking Chantix for behavior changes. Sales of the drug totaled $101 million last year.
The agency said it was investigating at least one incident involving Chantix and a violent death.
Family members of a musician in Dallas, Carter Albrecht, recently said that Chantix might have caused the rage that led to his death. Mr. Albrecht was shot in the head in September by his girlfriend’s neighbor as he tried to kick down the man’s door. An autopsy report showed that Mr. Albrecht’s blood alcohol level was three times the legal limit.
Maybe that had something to do with it, no?
The agency said it had asked Pfizer for information on additional cases that might be similar.
Regulators said it was unclear if Chantix was directly responsible for the behavior, because nicotine withdrawal often aggravates existing mental problems.
Pfizer, which is based in New York, also submitted reports to the agency on increased drowsiness among patients taking Chantix."
Then how was this asshole three times the limit on alcohol AND on the drowsy drug kicking in doorways!
Not every one is hurting this holiday season:
Goldman Sachs Starts Drive to Build Philanthropy Fund
"On the back of record profit so far this year, Goldman Sachs, the global investment bank, is starting a donor-driven philanthropy fund that aims to reach $1 billion over the next few years.
The fund, GS Gives, is initially focused on the firm’s roughly 350 partners who will be strongly encouraged to donate a fixed amount of their compensation.
If each partner gives $250,000, the fund will begin with $87.5 million. Eventually the fund will be open to a larger group of Goldman employees. Goldman’s asset management group will manage the fund free.
The program comes at a time of tremendous wealth creation for Goldman employees. The firm is one of a few that has been largely untouched by the meltdown in the subprime mortgage market and it stands out among its peers in the amount of money it has been able to make so far this year. In 2006 Goldman made $9.4 billion in profit; for the first nine months of 2007, it earned $8.2 billion.
“We know we make a lot of money, and we know that we live in this world and we have a responsibility to give something back,” said Lloyd C. Blankfein, chairman and chief executive of Goldman Sachs.
Through the third quarter, Goldman accrued almost $17 billion in compensation (investment banks set aside roughly 50 percent of revenue every quarter for compensation).
Goldman is hardly alone: all investment banks encourage philanthropy.
“At the two firms I worked at, it was not career-enhancing to not do your bit for society,” said Brad Hintz, a securities analyst at Sanford C. Bernstein. “There was a noblesse oblige, a sense that you would be generous with your contributions.”
Other banks have started donor-advised funds, though they are typically aimed at clients. For example, in 2003, Merrill Lynch started the Merrill Lynch Community Charitable Fund, which allowed wealth management clients and employees to set aside money that could then be used to make donations to one of 65 community foundations (the donor chooses the foundation).
Using the donor-advised fund allows individuals to receive a charitable deduction for setting aside the money (though it might not be paid out right away) and avoid the taxes applied to private foundations. Also, donating through the fund means not having to pay the legal and overhead expenses of managing a private foundation.
“I can time when I generate my charitable deduction without having to release the money directly,” said David Ratcliffe, director of the Merrill Lynch Center for Philanthropy and Nonprofit Management.
Other banks have different approaches. Bear Stearns requires employees to give 4 percent of their bonus and salary to charity every year. At Credit Suisse, holiday parties are paid for only if they raise money for charity. This year the bank has picked one cause — the Trust for Public Land — and it aims to raise $400,000 from employees, which will be matched by $600,000 from the firm.
Different business units within Credit Suisse choose different ways to raise money. The investment bankers will have a foosball competition and casino night; equities will have an auction; and fixed-income requires employees at a certain level to contribute a certain amount. The $1 million raised will contribute to a $3 million budget to build three parks.
“We don’t have a culture of ‘this is how you give,’” said Eric Eckholdt, executive director for the Credit Suisse Americas Foundation.
Goldman’s founders encouraged wealth creation for clients and employees, discouraged ostentation and expected a level of philanthropy. While ostentation in an age of $40 million homes in the Hamptons is hard to control, philanthropy efforts are more visible.
Before Goldman went public, employees who became partners were required to set up a foundation. Then when Goldman went public, the firm set up a foundation that now has $200 million. The new fund will not change any of the firm’s established giving.
“We have, as part of who we are, a very long history of charitable giving,” Mr. Blankfein said. “Think about the people who leave Goldman and go into public service. They don’t become like that — they were like that when we recruited them and we retained them.”
Partners who run foundations already will have the opportunity to fold those foundations into the fund, providing another source of money to build the fund, besides tapping compensation.
Cynics who have watched the wealth creation at Goldman might think that the program is little more than a public relations effort to mask the gigantic bonuses it is expected to pay out starting in early December (to be paid next year). But few want to discourage charitable efforts.
“It is better to be charitable than not to be charitable, particularly if you are going to blow the socks off your competition,” Mr. Hintz said.
Mr. Blankfein said: “It is in the long-term interest of this firm to do good things and not just dress up as if we are doing it. And we are really doing it."
China Wins Trade Ruling About Paper
"In a setback for American producers fighting Chinese imports, a federal trade panel ruled Tuesday against the American glossy paper industry’s request for tariffs on imported Chinese paper. The decision threw out duties that had been authorized by the Bush administration early this year.
The ruling, by the United States International Trade Commission, a quasijudicial body that makes its determinations independently, found that the NewPage Corporation and other makers of glossy or coated paper had not been “materially injured” or “threatened with material injury” from the subsidies."
Target Profit Declines 4%; Warm Autumn Is Blamed
"In a rare miss for a company that more often surprises shareholders with positive news, the retailer Target reported a 4 percent drop in third-quarter profits yesterday.
Target earned $483 million during the quarter."
Barnes & Noble Shows a Profit While Loss at Borders Widens"Barnes & Noble raised its earnings outlook yesterday, after swinging to a third-quarter profit on sales of new releases. Losses widened in the same period at its rival, the Borders Group, which was hurt by charges related to the sale of its subsidiaries in Britain and Ireland.
Still, the holiday outlook appeared brighter for both booksellers with the official start of the season beginning Friday. Borders, which has benefited from enhanced product assortments."
Why is the outlook bright for books? No one reads anymore!
Kids just gettin' fat eatin pork!
Hormel Reports Rise in Profit and Sales
"The Hormel Foods Corporation said yesterday that quarterly profit rose a better-than-expected 12 percent, helped by higher sales across all product lines. The company, which sells Hormel and Spam meats and Jennie-O turkey, said profit increased to $101.2 million in the fourth quarter."Tastes like shit, don't it, kids?
