Reuters - "Unusual trades in Countrywide calls raise eyebrows" (1-11-08)

"Unusual call trading in Countrywide Financial Corp on Thursday before news that Bank of America Corp was in talks to buy it has some option players asking if word of a pending deal had leaked to the market. About 304,000 calls compared with 248,000 puts traded in Countrywide, a combined volume five times its normal level, according to market research firm Trade Alert."

Bloomberg -"Central Banks Dance in Denial on Stagflation" (1-11-08)

"There's inflation and there's deflation. Both are bad, especially in excess, though stagflation -- defined as no or slow economic growth combined with a rising inflation rate -- holds a special place in the darker recesses of the dismal science's pantheon, not the least because of the dilemma it poses for central banks. 'Cutting interest rates to prevent a recession could stoke inflation pressures further,' says Joachim Fels, London-based co-chief global economist at Morgan Stanley. 'Conversely, raising rates or keeping them unchanged could push the economy over the brink.'"

The San Diego Union Tribune - "Governor proposes 10% cut in spending across the board" (1-11-08)

"Gov. Arnold Schwarzenegger's proposal yesterday for a $141 billion state budget with deep cuts was met with fear that 100,000 teachers may lose their jobs and suspicion that it's a ploy to get budget reform. Schwarzenegger insisted tax increases would not be part of the mix, reminding reporters that he pledged not to raise taxes when he took office in 2004."

The San Diego Union Tribune - "Bernanke indicates rate cuts coming" (1-11-08)

"Presenting a bleak picture of a deteriorating national economy, Federal Reserve Chairman Ben S. Bernanke strongly suggested yesterday that the Fed would cut interest rates soon, perhaps by a large amount."

The San Diego Union Tribune - "Holiday shopping season was worst in five years" (1-11-08)

"The weakest holiday shopping season in five years ended dismally for most retailers, whose sales tumbled despite deep discounts and extended store hours, stoking fears that the economy is tipping into a recession. Sales fell across the board, knocking down once-seemingly invincible chains such as Target (down 5 percent compared with last year), Abercrombie & Fitch (2 percent), Nordstrom (4 percent) and Kohl's (11.4 percent)."

Yahoo - "Novastar Cutting 85 Percent of Jobs" (1-11-08)

"Mortgage lender NovaStar Financial Inc. announced Friday it was eliminating about 170 jobs, or 85 percent of its work force, a move tied to the company closing its retail and brokerage lending operations."

Bloomberg - "LBO Firms Reduce Banking Fees as Takeovers Dry Up" (1-11-08)

"The decline in leveraged buyouts is slashing fees for investment banks, including Deutsche Bank AG and JPMorgan Chase & Co., by about 50 percent. Buyout firms paid $5.4 billion to securities firms in the U.S. and Europe in the second half of 2007, 38 percent less than the first six months, data compiled by New York-based research firm Freeman & Co. and Thomson Financial show. The drop was steepest in Europe, where fees fell 54 percent."

Yahoo - "What $1 Million Buys in Homes Worldwide" (1-11-08)

"Home prices in many parts of the world swelled last year, with Eastern European and Scandinavian markets leading the way with double-digit growth. The result? On foreign soil, $1 million buys less than ever. In London, it'll get you a one-bedroom, one-bathroom flat in Primrose Gardens. You'll save on cabs, however; the building is steps from the Belsize Park tube station. In Hong Kong, $1 million buys a three-bedroom, 825-square-foot apartment in a high-rise between the residential areas of Aberdeen and Pokfulam."

Business Week - "ARMs Aren't Always Behind Foreclosures" (1-11-08)

"It's no coincidence that states with the largest shares of adjustable-rate mortgages—Nevada, California, Arizona, Florida, and Colorado—are also among the states with the highest levels of foreclosures. The link between ARM concentrations and foreclosures has become increasingly apparent in the year or so since the subprime loans that originated at the top of the market started resetting. But just because a state has a low exposure to ARMs doesn't mean it is immune to high foreclosure rates. Take Texas, for example. Home prices in the Lone Star State are low and, as of November, 2007, only about 12% of mortgages were ARMs. But it ranked 14th in the nation for foreclosures, with a rate of one filing per 778 households."

CNN - "Countrywide borrowers: Fear not" (1-11-08)

"Marks suggested that Bank of America will be able to help current Countrywide customers where Countrywide can't, because it doesn't give risky subprime mortgages, so it plans to convert them into prime loans."