Charles Hugh Smith - "Let the Banks Go Under, Sell 10 Million Houses for $1 Each" (6-30-08)

"Today's target: the notion that the collapse of the insolvent U.S. banking system would be so terrible. Really? Terrible for who? Certainly not the nation at large. In fact the dissolution of the insolvent parts of the U.S. banking sector--yes, the investment banks, the money-center banks, the regional banks, and the savings and loans--would actually be an enormously positive development for the nation and indeed the world."

Yahoo - "The Next Victim of the Real Estate Crisis" (6-30-08)

"States are facing flat or even declining revenues even as costs for salaries, fuel, and construction increase. And revenues will only plunge further as the housing slump and credit crunch begin to reflect more in lower property assessments and sales and income taxes. With fewer homes being sold, homeowners are spending less on new furniture, carpets, bathroom and kitchen fixtures, and other household costs. Americans struggling just to make mortgage payments and fill fuel tanks have less to spend on discretionary purchases. Income tax is down as a result of job losses and shrinking profits for corporations, including those in the construction business."

Bloomberg - "Homeowners Fall Further Behind on Mortgage Payments" (6-30-08)

"In the worst housing slump since the Great Depression, 67,967 homeowners with mortgage insurance fell at least 60 days behind on their loans, compared with 40,687 who got back on track, the Mortgage Insurance Companies of America reported today. Borrowers who take on debt of more than 80 percent of a home's value are often required to buy coverage that pays lenders if they default."

Bloomberg - "Treasury Bear Market to Worsen Under Bernanke's Fed" (6-30-08)

"The biggest bear market in Treasuries since 2004 may get worse. Unlike four years ago, when Federal Reserve Chairman Alan Greenspan embarked on 17 consecutive interest-rate increases to contain the threat of rising consumer prices, his successor Ben S. Bernanke is giving investors few assurances that the scourge of inflation will abate anytime soon."

Bloomberg - "California Under Schwarzenegger Underperforms Davis" (6-30-08)

"As the most populous U.S. state, with a gross domestic product that's No. 8 in the world, California is so strapped for cash that it must consider a short-term, $10 billion loan to cover its bills. The widening deficit means the financing may be about 0.85 percentage point more expensive than five years ago, when Davis lost his job over a budget gap twice as large as the $17 billion deficit the state now faces. That's an added $8.5 million on every $1 billion borrowed."

Orange County Register - "Demand for O.C. homes takes first ‘08 dip" (6-30-08)

"Market watcher Steve Thomas at Re/Max Real Estate Services‘ latest report raises a question about the durability of the spring’s buying spurt. Thomas says that shoppers’ demand for O.C. housing, measured by the MLS tally of homes placed in pending escrows in the prior month, fell last week for the first time in 2008."

Orange County Register - "Distressed homes now 40% of O.C. supply" (6-30-08)

"Home market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 5,946 last week, up 48 vs. two weeks earlier or a 0.8% gain. Two weeks ago, distressed homes for sale fell by 7, the first drop of 2008."

Orange County Register - "Commercial construction down 34% in 2008" (6-30-08)

"The Construction Industry Research Board reports that plans for new office, industrial and retail space are down by two-thirds or more so far this year, accounting for the bulk of the declines in non-residential building permit values this year so far. verall, non-residential construction is off 34% in the first five months of the year vs. the same January-May period in 2007, the research board reported."

Bloomberg - "KB Home's Broad Says Investors `Better Off in Cash'" (6-30-08)

"Eli Broad, the philanthropist and founder of KB Home, said the growing number of vacant U.S. homes, mortgage-related losses at banks and declining consumer confidence have convinced him investors are 'letter off in cash' right now."

Bloomberg - "Genworth Mortgage Unit's Rating Reduced by Moody's" (6-30-08)

"Genworth Financial Inc., the insurer spun off by General Electric Co., had the financial strength rating of its mortgage insurance unit cut by Moody's Investors Service. 'The downgrade reflects historically high mortgage defaults and uncertainty about ultimate losses,' Moody's said today in a statement about the Richmond, Virginia-based insurer. The subsidiary was cut to Aa3 from Aa2, the rating company said"

Bloomberg - "Insurers' Catastrophe Claims Rise at Fastest Pace Since 1994" (6-30-08)

"U.S. property and casualty insurers have been hit with $8.9 billion in catastrophe claims so far this year for the highest first-half total since 1994, amid a surge in tornado-related damage, Insurance Services Office Inc. said."