Bloomberg - "Banks May Have to Boost Loss Reserves, Moody's Says" (1-7-08)

"Banks may be required to set aside more capital to offset the risk of losses on new collateralized debt obligations and other complex securities, according to Moody's Investors Service."

St. Petersburg Times - "Sharks await big meal but may go away hungry" (1-7-08)

"More than a couple of e-mailers to the newspaper can't discuss the recent housing plunge without cackling with pleasure. Okay, so I can't hear them cackling, but that's the tone of their messages. Some salivate at the prospect of scooping up cheap houses from chumps who rashly bought at the housing peak. They'll wait for the Great Meltdown and then come in to sop up the drippings. Some even predict a return to three-bedroom, two-bath houses in the suburbs for $88,000."

The News-Press - "Reckless debt has led to our real estate woes" (1-7-08)

"Most of the media attention related to the real estate debacle focused on stratospheric pricing, speculator greed, unfair tax burdens and an insurance crisis, creating what some would call the perfect storm. I'm convinced the cleanup will take longer than most category 5 hurricanes. I believe the reason, and the one most often swept under the rug, is the egregious debt level of most individuals and families. Excessive debt of course can be due to accidents, illness or other tragedies, but unfortunately bad choices and turning homes into ATMs play the largest role in excessive debt."

Bloomberg - "Fed's `Inflation Problem' Gets Some Ad Hoc Help" (1-7-08)

"U.S. home prices are falling on a national average basis for the first time since the Great Depression. The rate of decline varies across the country, with once-hot markets (Florida, Southern California, Las Vegas, Phoenix) turning cold faster than others. More than 100 mortgage lenders have gone belly-up. Banks are stuck with billions of dollars in bad loans. Investors who bought securities collateralized with pools of subprime loans don't know what their holdings are worth. And the market for that debt has virtually dried up."

Bloomberg - "CIBC Ousts Shaw, Kilgour After Debt Writedowns" (1-7-08)

"Canadian Imperial Bank of Commerce, the country's worst-performing bank stock last year, ousted its top investment banker and chief risk officer after announcing debt writedowns of as much as $3 billion, more than any other Canadian lender. Brian Shaw, chief executive officer of CIBC World Markets, will be replaced by TSX Group Inc. CEO Richard Nesbitt, the Toronto-based bank said today in a statement. Chief Financial Officer Tom Woods will replace Ken Kilgour as risk officer."

Bloomberg - "Rogers Says U.S. to Have Worst Recession `in a While'" (1-7-08)

"The U.S. economy is heading for a recession that will be the worst 'in a while' and investors should sell the dollar as global currencies weaken, investor Jim Rogers said."

Real Estate Journal - "Watchdog Probes Wall Street's Role in the Mortgage Industry" (1-7-08)

"The Financial Industry Regulatory Authority, Wall Street's self-regulatory body, last month sent letters to firms asking for documents, including marketing materials, a list of supervisory policies and procedures, and descriptions of how collateralized mortgage obligations were valued, according to a copy of the letter reviewed by The Wall Street Journal. The Finra letter suggests that the regulators are looking into whether brokers sold these risky investments to individuals just as the market for related products was collapsing. Finra specifically asks for offering documents on products sold, created or distributed during the months of March and June 2007. The mortgage market had weakened since the previous fall and fell sharply over the spring and summer."

Los Angeles Times - "Paulson hints of ARM rate freeze" (1-7-08)

"We need to see all servicers reporting results to HOPE NOW to measure effectiveness and then make adjustments as needed. This may include using elements of a systematic approach for adjustable-rate mortgages other than sub-prime if it will benefit homeowners and investors."