StarTribune.com - "Are American consumers too strapped to spend?" (1-24-08)

"With Tuesday's announcement of the steepest interest rate cut in more than two decades and President Bush and congressional leaders showing rare unity working on a tax rebate that could reach $1,600 for couples, U.S. officials hope a little extra cash in everyone's pocket will quickly pass through to the nation's struggling economy. Consumer spending accounts for 70 percent of the domestic economy."

Financial Times - "Dodd seeks ‘ambitious’ financial rescue plan" (1-24-08)

"Christopher Dodd, the Senate banking committee chairman, insisted on Wednesday that any economic stimulus package for the US must go beyond short-term measures, proposing a new $10bn-$20bn fund that would buy outstanding mortgages at steep discounts to help distressed homeowners."

The Boston Globe - "It's time to save the housing sector" (1-24-08)

"THE ECONOMIC crisis now unfolding is not like other postwar recessions, which could be fixed with low interest rates and deficit spending. This crisis reflects the collapse of major parts of the financial sector. That's why the Federal Reserve convened a rare emergency meeting Monday and slashed short-term rates by three-quarters of a point, to 3.5 percent. But the structural damage to the financial economy can't easily be fixed with low interest rates."

Market Watch - "Lennar's fourth-quarter loss widens" (1-24-08)

"Lennar Corp.'s fourth-quarter loss widened to $1.25 billion, or $7.92 a share, from a year-earlier loss of $195.6 million, or $1.24 a share, as the company booked a $7.50-a-share charge related to valuation adjustments and other write-offs. Revenue dropped 51% to $2.18 billion from $4.27 billion, due primarily to declines in the number of home deliveries and average sales prices. Analysts polled by Thomson Financial expected, on average, a loss of $1.65 a share on revenue of $2.06 billion. The Miami homebuilder said it doesn't expect market conditions to improve in 2008, and may continue to decline in the near term."

NAR - "Existing-home Sales Down in December but 2007 was Fifth Highest on Record" (1-24-08)

"Existing-home sales declined in December following several months of stable activity, with total sales in 2007 at the fifth highest on record, according to the National Association of Realtors®. Existing-home sales – including single-family, townhomes, condominiums and co-ops – slipped 2.2 percent to a seasonally adjusted annual rate1 of 4.89 million units in December from a pace of 5.00 million in November, and are 22.0 percent below the 6.27 million-unit level in December 2006."

NAHB - "Housing Incentives Key To Success Of Stimulus Package" (1-24-08)

"To help stimulate the economy and address the current housing situation, NAHB, in a letter to lawmakers, urged them to consider the following policy options when crafting a stimulus package: Create a tax credit for the purchase of a home. Expand the net operating loss (NOL) tax deduction. Expand the mortgage revenue bond program. Designate housing as an eligible investment for tax-preferred retirement accounts.Increase the conforming loan limit for Fannie Mae and Freddie Mac."

Bloomberg - "Morgan Stanley to Cut About 1,000 Jobs, Person Says" (1-24-08)

"Morgan Stanley, the second-biggest U.S. securities firm, plans to eliminate about 1,000 jobs as economic growth slows and the profit outlook dims, according to a person familiar with the matter. The cuts will affect asset management, retail brokerage and support areas such as technology and administration, the person said. They aren't expected to target the New York-based firm's institutional securities division, which includes trading and investment banking, the person said."

Yahoo - "Best and Worst Places to Buy a House" (1-24-08)

"The housing crunch and the excessive inventory -- exceeding 10 months on resale homes -- continues to take its toll on housing prices. But over the long term, housing is still a good investment. In fact, it's more than an investment; it's a home. Plus, you're not really saving anything by renting, as the costs of renting and owning are about equal (well, owning may be a little more). The tax benefits of home ownership far outweigh renting, too. With good housing prices in many great areas, this may indeed be the time to buy."

Orange County Register - "What the Fed cut means to O.C. housing" (1-24-08)

"Mortgage brokers quoted rates as low as 5 to 5.25 percent in Orange County on Tuesday for a 30-year fixed mortgage with a one-point fee. But that's only for conforming loans, which are up to $417,000 and can be sold to government-sponsored companies such as Fannie Mae, the largest U.S. funder of home loans. However, because of high home prices in the county many shoppers get jumbo loans, which are above $417,000. Brokers quoted jumbo rates ranging from 6.125 to 6.750 percent on Tuesday. The lower rates are good for home shoppers in Orange County."