Bloomberg - "Paulson, U.S. Banks Forge Foreclosure-Freeze Deal" (2-12-08)

"Treasury Secretary Henry Paulson and banks representing half the U.S. mortgage market agreed to offer 30-day freezes on foreclosures, acknowledging the need for a stronger response to the worst housing slump in a generation. JPMorgan Chase & Co., Citigroup Inc. and four other banks set up a plan to encourage homeowners at risk of default to contact lenders about modifying their loans. Paulson said that he's open to additional measures, while rejecting a Democratic proposal for the government to buy distressed mortgages."

Financial Times - "Three wiser men" (2-12-08)

"None of the institutions at the heart of the crisis - the Federal Reserve, the European Central Bank and the Bank of England - has found the past half year comfortable. The period has been the equivalent of a test-tube experiment in modern central banking, and policymakers now resemble a distinctly uneasy group of scientists: they know what policies they have put into the pot in recent months, but are far from clear why the markets have reacted in certain ways - and even less sure that they have devised the perfect cocktail to stop markets erupting again."

Bloomberg - "IndyMac Posts Record Loss, Calls Reserves Adequate" (2-12-08)

"IndyMac Bancorp Inc., the second- biggest independent U.S. mortgage company, posted a record fourth-quarter loss. The shares rose after it said reserves are adequate even if defaults continue building at the recent pace. The net loss was $509.1 million, or $6.43 a share, compared with a profit of $72.2 million, or 97 cents, in the same period a year earlier. The company's $2.4 billion in reserves will protect it should late payments and default rates continue at the fourth quarter's 'horrible' rate, Chief Executive Officer Michael Perry said on a conference call with analysts."

CNN - "Buffett offers to help ailing bond insurers" (2-12-08)

"Billionaire investor Warren Buffett said Tuesday he is offering to take over the liabilities of the troubled bond insurers, whose shaky finances have regulators and Wall Street greatly alarmed.
The billionaire's Berkshire Hathaway (BRKA, Fortune 500) approached the three largest bond insurers last week - Ambac (ABK), MBIA (MBI), and FGIC Corp. - offering to reinsure about $800 billion in tax-exempt or municipal bonds in order to maintain their 'AAA' rating, Buffett told CNBC in a televised interview."

The Washington Post - "White House Sees Slow Growth in '08, But Not a Recession" (2-12-08)

"The economy may grow slowly the first half of this year, the Bush administration said yesterday, but it is not in recession. The economic stimulus bill that President Bush plans to sign this week, combined with interest rate cuts by the Federal Reserve, will result in stronger growth in the second half of the year, according to the annual Economic Report of the President."

Bloomberg - "GMH to Be Bought by American Campus, Balfour Beatty" (2-12-08)

"GMH Communities Trust, the U.S. provider of housing to students and the military, agreed to be bought in two transactions for a total of $787 million. GMH, based in Newtown Square, Pennsylvania, will sell its military housing unit to Balfour Beatty Plc, the U.K.'s largest house builder, for $350 million in cash, according to a statement today. The rest of GMH will then be acquired by American Campus Communities Inc. for $437 million in cash and stock. American Campus will also assume $963 million in debt. GMH gained as much as 59 percent in New York trading."

Los Angeles Times - "Behind the new foreclosure freeze: The fear factor" (2-12-08)

"Banks and lenders are afraid -- afraid of a deepening housing crisis, afraid of the political blowback, afraid of writing down more bad loans, and very, very afraid of being stuck owning foreclosed houses that are declining in value every day. The knife is still falling; banks and lenders do not want to catch it. But don't take my word for it. I get my best stuff from the comment section"

Orange County Register - "Ladera homes are O.C.’s most searched" (2-12-08)

"Home tracker Zillow has its critics, but it also offers an usual bit of data: What neighborhoods are most closely checked, on a relative basis to their home counts, at this online valuation service. Here’s a look at the fourth-quarter popularity contest"

Real Estate Journal - "Why Your Nest Is NotYour Nest Egg" (2-12-08)

"A house isn't a stock. To be sure, you probably don't regularly confuse the bricks and mortar you occupy with the investments listed on your brokerage statement. Yet thinking about the differences between the two helps explain why folks love owning real estate -- but also why some homeowners are in such trouble today. Here are five key ways that homes differ from stocks and stock mutual funds."