DQNews - "California November 2008 Home Sales" (12-19-08)

"An estimated 32,163 new and resale houses and condos were sold statewide last month. That was down 24.0 percent from 42,293 in October and up 25.7 percent from 25,578 for November last year. Sales have increased on a year-over-year basis the last five months. California sales for the month of November have varied from last year's low to a peak of 60,326 in 2004, the average is 40,592. MDA DataQuick's statistics go back to 1988."

The Wall Street Journal - "Schwarzenegger Rejects Democrats' Budget Plan" (12-19-08)

"Democratic lawmakers on Thursday pushed through an $18 billion package of cuts and tax increases to reduce California's burgeoning budget deficit, but Gov. Arnold Schwarzenegger said it didn't go far enough and immediately said he would not sign it."

San Francisco Chronicle - "The rush to refinance" (12-19-08)

"Mortgage rates tumbled to historic lows this week after the Federal Reserve signaled a willingness to reduce lending rates and spend billions of dollars to jump-start the housing market. That's triggered a rush among homeowners to refinance - potentially putting thousands of dollars a year into many consumers' pockets, money that could find its way into the general economy. The lower rates are expected to continue, which could spur fence-sitters to buy homes next year."

Bloomberg - "Congress Ready to Tap $350 Billion in Aid, Frank Says" (12-19-08)

"U.S. House Financial Services Committee Chairman Barney Frank said Congress will release $350 billion from the bank-rescue package after lawmakers, President- elect Barack Obama and Treasury Secretary Henry Paulson agree to provide foreclosure relief and aid to automakers. Frank, a Massachusetts Democrat, said he plans to introduce legislation with Senate Banking Committee Chairman Christopher Dodd to release remaining funds in the $700 billion package next month. The bill will include homeowner help and short-term loans for General Motors Corp. and Chrysler LLC, Frank said in a telephone interview today."

Bloomberg - "Fed Rate Cuts Dull Perceived Safety of Dollar: Chart of Day" (12-19-08)

"The U.S. dollar is poised to fall against other major currencies as the Federal Reserve’s 'aggressive' rate cuts make the greenback less attractive to investors, Credit Suisse Group AG said."

Bloomberg - "Fed Loans Guided by Raters Grading Subprime Debt AAA" (12-19-08)

"Federal Reserve Chairman Ben S. Bernanke is basing hundreds of billions in emergency lending on credit ratings from companies that gave AAA grades to toxic securities. The Fed has purchased $308.5 billion in commercial paper and lent $631.8 billion under eight credit programs, most of which require appraisals of short-term debt and loan collateral by “major nationally recognized statistical ratings organizations.” That, in effect, means Moody’s Investors Service, Standard & Poor’s and Fitch Ratings."

The Washington Post - "HUD Chief Calls Aid on Mortgages A Failure" (12-19-08)

"Secretary of Housing and Urban Development Steve Preston said the centerpiece of the federal government's effort to help struggling homeowners has been a failure and he's blaming Congress. The three-year program was supposed to help 400,000 borrowers avoid foreclosure. But it has attracted only 312 applications since its October launch because it is too expensive and onerous for lenders and borrowers alike, Preston said in an interview."