Federal Reserve Chairman Ben Bernanke said the economy is likely to keep shrinking in the first six months of this year. Housing, credit and financial crises — the worst since the 1930s — plunged the economy into its worst downhill slide in a quarter-century at the end of last year.
==================
Consumer confidence plummets to new low in Feb.
Consumer Confidence Index, which was down slightly in January, plummeted more than 12 points in February to 25, from the revised 37.4 last month. That was well below the 35.5 level that economists surveyed by Thomson Reuters expected.
The index, which had hovered in the high 30s over the past few months, broke new lows since it began in 1967. A year ago, the consumer confidence reading stood at 76.4.
The Present Situation index, which is consumers' assessment of current economic conditions, fell to 21.2 from 29.7 last month. The Expectations' Index, which is consumers' outlook over the next six months, sank to 27.5 from 42.5.
====================
Stimulus Tax Breaks
Most households will qualify for a tax break. Boost for some could be worth several hundred to several thousand dollars. 97% of American households could see tax savings as a result of the American Recovery and Reinvestment Act. the average savings would be $1,179
===================
Home prices plunge 18% in 4Q
Prices of existing single-family homes tumbled 18.2% on average in the fourth quarter of 2008, marking the biggest year-over-year price decline in the 21-year history of the Standard & Poor’s/Case-Shiller National Home Price Index.
The metropolitan area posting the biggest price decrease was Phoenix, where prices fell 34%. This was followed by Las Vegas, where prices fell 33%, and San Francisco, where there was a dive of 31.2%. Other metro areas posting declines in excess of 10% were Atlanta, Chicago, Detroit, Los Angeles, Miami, Minneapolis, Portland, San Diego, Seattle, Tampa, and Washington.
The metro areas showing the smallest price erosion were Denver and Dallas, where prices fell 4% and 4.3%, respectively.
Home prices at the end of December were at their lowest levels since the third quarter of 2003
==================
American Express offers some holders $300 incentive to cancel accounts.
The company is offering a $300 prepaid card, which can be used anywhere American Express is accepted, to certain customers who pay off their entire balance between March 1 and the end of April. Enrolling in the deal automatically cancels the customer's account, regardless of whether he successfully pays off the balance.
==================
Extent of Bankruptcy Reform Hinges on Details
How the administration chooses to define several parts of its plan will impact whether tens of thousands of homeowners are excluded.
the Obama initiative would cap the value of mortgages that could be revised in bankruptcy court. It would also pertain only to loans originated in the "past few years," according to a summary of his proposal.
The House, where bankruptcy reform has already been approved in committee, could take up the measure as soon as next week.
The administration has designed a program to lavish incentives on lenders that modify mortgages. The incentives are the carrots to encourage more modifications, and bankruptcy reform is seen by the administration as the stick lenders would face for failing to comply.
Democratic congressional leaders aim to have the legislation passed within the next month, the aide said.
The proposal would also cap the value of the loans eligible for bankruptcy modification to limits set by mortgage finance firms Fannie Mae and Freddie Mac, which could be difficult in parts of the country that saw the biggest run-up in prices.
(The conforming loan limit is currently $417,000 in most parts of the country and $625,000 in high-price areas, including the Washington region, though the limit in these areas will soon rise to $729,750.)
No comments:
Post a Comment