Market Watch - "CORRECT: Goldman hedge funds suffer losses" (8-9-07)

"Two Goldman Sachs hedge funds have suffered losses in recent weeks, but the investment bank is keeping them open, a person familiar with the situation said on Thursday. The North American Equity Opportunities fund has sold some of its positions recently after losses, the person said, speaking on condition of anonymity. Losses suffered by Goldman's largest hedge fund, the $9 billion Global Alpha fund, have sparked concerns that it could close. Such speculation has roiled markets in recent days, triggering losses among other hedge funds that use similar strategies."

Market Watch - "$43 billion in loan deals pulled in past two weeks" (8-9-07)

"In the past two weeks, another 13 corporate loan or bond deals have been postponed or reduced, representing slightly less than $43 billion, according to research released Thursday by Baring Asset Management. That raises the total number of financing deals pulled from the market since June 22 to 46, representing more than $60 billion, analysts at the firm said. No deals were pulled last year, according to the firm. Toby Nangle, a fixed-income manager at Barings, estimated that banks financing leveraged buyouts and management-led buyouts have been left with an estimated $400 billion on their balance sheets."

CNN - "Dow sees 2nd worst day of '07" (8-9-07)

"Stock slumped Thursday, with the Dow suffering its second worst session of the year as worries about the global credit market sparked a broad selloff in equities, following a three-session rally. Bond prices rose as jittery investors dumped stocks in favor of the so-called safer haven of Treasurys. The Dow Jones industrial average (down 387.18 to 13,270.68, Charts) tumbled 387 points, or 2.8 percent, its biggest one-day point and percentage loss since Feb. 27, when it plunged 416 points on worries about a global growth slowdown."

CNN - "Subprime problems spread" (8-9-07)

"Another rough day on the subprime front. AIG, the world's largest insurer and one of the biggest mortgage lenders, said residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime. France's biggest listed bank, BNP Paribas, froze $2.2 billion worth of funds, citing subprime woes. And the European Central Bank felt it had to inject $130.5 billion into euro-zone money markets to help calm jittery markets."

Orange County Register - "Housing forecast worsens amid market's slump" (8-9-07)

"Home sales will hit a five-year low this year, as wary lenders cut back on loans for many borrowers, a trade group for real estate agents said Wednesday. The National Association of Realtors' revised forecast calls for existing home sales of 6.04 million in 2007, down 6.8 percent from last year. The forecast was 1 percent lower, or 70,000 fewer homes, than July's prediction of 6.11 million. This year's sales would be the lowest since 2002, when sales hit 5.63 million. Last year's sales were 6.48 million."

Los Angeles Times - "Worries over U.S. housing market grow" (8-9-07)

"Anxiety over the housing slump kicked up a notch Wednesday, as two key industry players signaled that home sales would weaken further this year because the widening credit crunch is reducing the number of buyers who can qualify for a mortgage. The National Assn. of Realtors, a trade group that has tried to couch the slumping housing market in the best possible terms, cited the recent turbulence in the mortgage market as it lowered its outlook for home sales for the eighth time this year."

Los Angeles Times - "Experts, residents unsure of new downtown rules' effect" (8-9-07)

"By significantly altering downtown zoning rules in a bid to spur more housing development, Los Angeles is gambling that it can ease its notorious housing crunch without causing bigger problems. In the last three months, the city has taken two dramatic steps to further accelerate downtown's boom in residential construction."

CNN - "Mortgage defaults growing" (8-9-07)

"Another rough day on the subprime front. AIG, the world's largest insurer and one of the biggest mortgage lenders, said residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime. France's biggest listed bank, BNP Paribas, froze $2.2 billion worth of funds, citing subprime woes. And the European Central Bank felt it had to inject $130.5 billion into euro-zone money markets to help calm jittery markets."

Bloomberg - "U.S. Stocks Tumble on Credit Concerns; Banks, Brokers Retreat" (8-9-07)

"U.S. stocks tumbled as subprime mortgage contagion and hedge fund losses halted a three-day rally and sent brokerage shares to their worst rout since 2002. 'The fear is feeding on itself,' said Jeffrey Kleintop, who helps oversee more than $173 billion as chief market strategist at LPL Financial Services in Boston. 'It's what you don't know that seems to be taking over the market.'"