Market Watch - "Fund for credit market seen as modest first step" (10-15-07)

"A plan by big U.S. banks to create a special fund to help guarantee liquidity in the commercial paper markets drew mixed responses Monday, as its backers in the U.S. government said the proposal is a temporary step to help markets get back on their feet."

CNBC - "Surprise! Americans Plan To Spend More This Holiday" (10-15-07)

"Forget the credit crunch, housing recession and slowing economy. Americans plan to open their wallets this holiday season, though maybe not on those cheap Chinese toys. CNBC’s quarterly 'Wealth in America Report' finds that American plan to spend an average of $839 on Christmas gifts, up 17% from November 2006."

Bloomberg - "Treasury Sales May Rise 50% as Deficit Suddenly Grows" (10-15-07)

"Sales of Treasuries may increase for the first time since 2004 as the U.S. federal budget deficit expands, jeopardizing the biggest bond rally in five years. Government auctions of bills, notes and bonds in the fiscal year that started this month may rise more than 50 percent to $220 billion, according to UBS Securities LLC, one of the 21 primary dealers that underwrite Treasury auctions. The first decline in corporate tax revenue since 2003 increased the shortfall by 12 percent to $162.8 billion for the year ended in September, from $144.8 billion in the 12 months through April."

Bloomberg - "Citigroup Net Falls 57 Percent on Fixed-Income Losses" (10-15-07)

"Citigroup Inc., the biggest U.S. bank, said mortgage delinquencies and consumer lending will deteriorate for the rest of the year after earnings fell 57 percent in the third quarter. Citigroup had its biggest drop in more than a month in New York trading after Chief Financial Officer Gary Crittenden on a conference call said borrower defaults are 'accelerating.'"

Washington Post - "Getting Out of the Mortgage Squeeze" (10-15-07)

"Long before the mortgage market fell apart this summer, Friedman Billings Ramsey, Washington's largest investment bank, saw the trouble ahead. In early 2005, the company invested an eye-catching half-billion dollars, a third of what it had available, in the subprime mortgage business, even buying a mortgage lender. The company bet big that these high-risk loans to people with poor credit would return impressive profits."

Real Estate Journal - "Exchange Rates Give Foreigners The Edge in U.S. Housing Market" (10-15-07)

"With the dollar at historic lows against the euro and other currencies, real-estate agents, appraisers and developers say overseas buyers are stepping up their purchases in the U.S. Some are buying vacation homes in Florida, California and Colorado that would previously have been considered out of reach. Others are gambling that properties purchased now will translate into savvy investments down the road, when both the dollar and the U.S. housing market eventually rebound."

Real Estate Journal - "Democrats Propose Measure To Help Subprime Borrowers" (10-15-07)

"Senior Democrats in Congress said they will move to allow Fannie Mae and Freddie Mac to temporarily increase their portfolios to help borrowers with subprime loans refinance into more affordable products. Sen. Charles Schumer, of New York, and Rep. Barney Frank, of Massachusetts, said they will introduce bills in their respective chambers, perhaps as soon as next week, that would allow the housing financiers to expand their loan portfolios by 10% for six months. Such a move could force a confrontation with the Bush administration, which has resisted efforts to allow the government-sponsored enterprises, or GSEs, to grow despite problems in credit markets."