Bloomberg - "ECB Adds Cash for Third Day, Says Market Normalizing" (8-13-07)

"The European Central Bank lent emergency money to banks for a third day, while paring the amount and declaring that markets are returning to normal. The ECB loaned 47.7 billion euros ($65 billion) to banks, down from 61.05 billion euros on Aug. 10. The U.S. Federal Reserve, the Bank of Japan and Australia's central bank today resumed normal refinancing operations and refrained from providing extra funds."

MSNBC - "High-risk mortgages turning into toxic mess" (8-13-07)

"When Linda Martin refinanced the mortgages on three different houses nearly three years ago, she thought the lower monthly payments would help her save more money for retirement. Instead, the Lakewood, Colo. skin-care specialist is sinking in financial quicksand amid a widening mortgage morass that’s pulling down home prices and threatening to drag the U.S. economy into a recession."

Houston Chronicle - "Goldman Hedge Fund Gets $3B Bailout" (8-13-07)

"Goldman Sachs Group said Monday it is leading a group of investors that includes Maurice 'Hank' Greenberg and Eli Broad, sinking $3 billion into one of its biggest hedge funds which has seen its value plunge amid market volatility. The investment bank said its Global Equity Opportunities fund 'suffered significantly' as global markets sold off on worries about debt and credit. The fund lost about 28 percent in the past few weeks, dragging its value down to $3.6 billion, from about $5 billion last month."

Bloomberg - "Accredited Shares Fall After Lone Star Backs Away" (8-13-07)

"Accredited Home Lenders Holding Co. shares fell as much as 35 percent after buyout firm Lone Star Funds said it wouldn't go through with its planned $400 million purchase of the subprime mortgage lender. Accredited said today it's suing to force Lone Star to honor the agreement."

CNN - "Dems take on mortgage meltdown" (8-13-07)

"In the wake of the subprime mess, Democratic presidential candidates are grabbing hold of the issue and offering their own solutions. And the problem, according to many of them, lies with the mortgage broker. Sen. Barack Obama has introduced legislation targeting fraud and predatory lending. John Edwards, the former senator from North Carolina, has said he wants to ban certain fees, establish uniform broker licensing standards and start a national database for disciplinary infractions."

Los Angeles Times - "Credit fears may curb home sales" (8-13-07)

"The earthquake that jolted world credit markets last week is roiling Southern California's real estate market. August could wind up as one of the worst months on record for the region's home sales as the market faces a double whammy. Not only is the pool of available mortgage money and other loans shrinking, but consumer anxiety about the real estate market in general is mounting."

Orange County Register - "Foreclosures, short sales now 5% of O.C. home inventory" (8-13-07)

"The number of O.C. homes for sale nears its peak for the year, says Steve Thomas at Re/Max Real Estate Services in Aliso Viejo. Thomas calculates 'market time,' a benchmark of how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. By this Thomas logic, it would take 9.76 months for buyers to gobble up all homes listed for sale at the current pace of deals vs. 9.66 months two weeks earlier and vs. 7.04 months a year ago."