By William Patalon III Managing Editor The Money Map Report Even billionaires aren’t immune to the subprime-mortgage crisis and the accompanying global credit crunch. Only a week after the Las Vegas Sands Corp. opened its luxurious Venetian Macao hotel and resort just off the China coast, the Macau casino plans of Australian billionaire media mogul […]
By Mike Caggeso Staff writer The Bank of Canada announced Wednesday that it will keep its target for its overnight lending rate at 4.5%, and indicated that previous hints at a rate increase are economically rational, but premature. The economy of our northern neighbor is growing at a faster clip than expected. Its total and […]
By Mike Caggeso Staff Writer In spite of the market turmoil of recent weeks, global economist Jay Bryson has a message for investors and consumers alike. Calm down, folks: It’s not as bad as it seems. In fact, Bryson even says the odds of a full-blown recession are unlikely. With the strong recovery in stocks […]
By Mike Caggeso Staff Writer Credit defaults have overtaken terrorism as the U.S. economy’s Public Enemy No. 1, a key national research group reported Monday. The National Association of Business Economics, a Washington-based association, surveyed 258 NABE panel members in the survey: Of that total, 32% cited loan defaults and excessive debt as their biggest […]
From Staff Reports Lehman Brothers Holdings Inc. (NYSE: LEH) yesterday (Wednesday) announced that it is shutting down its subprime-mortgage unit, BNC Mortgage LLC, becoming the latest company to stop offering home loans to borrowers with risky credit ratings. The move will result in 1,200 employees being fired. BNC was a top-20 subprime mortgage lender in […]
From Staff Reports The Blackstone Group LP (NYSE: BX), the world's largest private-equity fund, said its buyout projects in India will not be deterred by the worldwide credit problems, the company told Bloomberg News this week. The New York-based Blackstone just agreed to buy a controlling interest in India's largest garment exporter, Gokaldas Exports Ltd., […]
From Staff Reports The number of U.S. foreclosure filings reported for July were up 93% over the same month last year, the latest sign that homeowners are having trouble making mortgage payments or selling their homes during this national housing downturn. Foreclosure reports were up only 9% from June, The Associated Press reported. This is […]
All things considered, U.S. central bank chief Ben S. Bernanke and the Federal Reserve have so far demonstrated a tremendous amount of restraint amid the credit crunch. Market volatility, tightening credit conditions, and the collapse of the subprime-mortgage-stuffed Bear Stearns Cos. (NYSE: BSC) hedge funds – as well as several mortgage lenders operating at the […]
Three more major U.S. mortgage lenders announced major job reductions yesterday.
The credit crisis may get worse before it gets better in the coming months, as more than 2 million adjustable rate mortgages (ARMs) are ready to "re-set" – industry parlance for boosting their rates.