NAHB - "Builders Remain Cautious as Buyer Traffic Improves in February" (2-19-08)

"Builder confidence in the market for new single-family homes edged marginally higher in February as traffic of prospective buyers through model homes improved considerably, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), released today. The HMI rose a single point to 20 this month, still close to its recent historic low reading of 18 (the series began in January of 1985)."

Asia Times - "The quicksand of deficit spending" (2-19-08)

"somebody is going to catch hell, and Nancy Pelosi has absolutely no idea what in the hell she is doing, because this $168 billion has to also be paid for with more government borrowing, which means the Fed must create more money and credit, which turns into more money when somebody borrows the money from the banks to buy these bonds, which further inflates the money supply, which causes more inflation in some consumer prices as this new money enters the auction in the marketplace of goods and services, and then inflation appears in other consumer prices, too, more and more and more until it has caused inflation in all prices, and then everybody is worse off than when they started; my wife is out 65 bucks, I am broke and in trouble, and the inflation in prices is making life more miserable for everybody."

Bloomberg - "Bond Insurer Split Threatens $580 Billion of Notes" (2-19-08)

"Credit ratings on more than $580 billion of asset-backed securities may be cut, sparking writedowns by banks, under New York regulator Eric Dinallo's plan to break up bond insurers. New York Insurance Department superintendent Dinallo proposed splitting the companies' municipal insurance units from their unprofitable businesses of guaranteeing debt linked to subprime mortgages. A separation may preserve AAA rankings for securities sold by local governments and agencies, while allowing asset-backed securities to slide."

BBC News - "Credit Suisse traders suspended" (2-19-08)

"The Swiss firm blamed pricing errors for its actions, which would cut $1bn from expected first-quarter profit. It also blamed 'adverse market conditions' for the write-down."

Reuters - "Barclays ups writedown to $3.1 billion" (2-19-08)

"Barclays Plc, Britain's third-biggest bank, raised its 2007 writedown on the value of risky assets to 1.6 billion pounds ($3.1 billion) but reported profits broadly in line with analysts' expectations. Barclays is the first big UK bank to report earnings after a turbulent year and analysts said Tuesday's numbers -- including a lower-than-expected 300 million pound increase in writedowns and a 10 percent dividend rise -- were good news for the sector."

CNBC - "'New' Conforming Loan Limits Look -- Limited" (2-19-08)

"Before you all go running to your mortgage brokers, screaming to refi your adjustable rate mortgages into good ol’ 30-year fixed rate loans under the 'new temporary' conforming loan limits agreed to in the recently-signed stimulus package, take a breath. It might not be all Congress cracked it up to be."

Orange County Register - "O.C. home affordability highest in three years" (2-19-08)

"The California Association of Realtors reported today that 28% of Orange County residents could afford to buy an entry-level home here last fall — assuming that they could find a jumbo loan to finance it. That affordability rate increased from 24% in the same quarter a year before and was the highest in Orange County since the fourth quarter of 2004, when the rate last was at 28%."

Bloomberg - "Morgan Stanley Buys Citigroup's Tokyo Headquarters" (2-19-08)

"Morgan Stanley, the second-biggest U.S. securities firm by market value, bought Citigroup Inc.'s Tokyo headquarters, adding to more than $18 billion of property investments in Japan in the past decade. A Morgan Stanley real estate fund purchased the 22-story building, said Natsuo Nishio, a Tokyo-based spokesman at Morgan Stanley. The fund paid 48 billion yen ($444 million), three people with knowledge of the matter said, declining to be identified because the price hasn't been publicly announced."

Bloomberg - "BlackRock Says 'No Truth' to Rumors of Subprime Loss" (2-19-08)

"BlackRock Inc., responding to speculation that drove its stock down the most since October 2001, denied it faces big losses on collateralized-debt obligations or subprime mortgages."