Sales of newly built homes sank last year at the steepest pace since record keeping began in 1963 - and home builders expect their worst recession in decades to persist until at least the middle of this year.
New home sales totaled 774,000 in 2007, off a staggering 26% from 2006. The median price was nearly flat at $246,900. Since peaking in July 2005, new home sales have plunged nearly 57%, and construction permits have fallen to half the level they were then.
For December 2007, adjusted annual rate, of 604,000 homes sold - down 41% from last December.
Prices are down 10%, to $219,200.
The National Association of Home Builders says about 4% of builders were guaranteeing home values, 58% were offering price cuts, more than half were paying some buyers closing costs and 61% were offering free upgrades, according to its November survey of about 400 builders nationwide.
Tuesday, January 29, 2008
Weekly Box Office
Opening week for each:
#1 Meet the Spartans $18.5 million
#2 Rambo $18.2 million
#7 Juno, total $100 million in 8 weeks
#8 National Tresure, total $205 million in 6 weeks
#1 Meet the Spartans $18.5 million
#2 Rambo $18.2 million
#7 Juno, total $100 million in 8 weeks
#8 National Tresure, total $205 million in 6 weeks
Countrywide - Regulatory Crackdown
The fear of potential regulatory crackdowns helped drive Countrywide Financial Corp into the arms of acquirer Bank of America Corp, people familiar with the situation say. Though the big home mortgage lender faced large and unpredictable losses on defaults, the more immediate danger was pressure from regulators, politicians and rating firms. The $4 billion deal was announced Jan 11th.
Countrywide could no longer raise money through short-term borrowings in the capital markets or sales of mortgages other than those that could be guaranteed by government sponsored investors Fannie Mae and Freddie Mac. That forced Countrywide to rely much more heavily on two other sources of funding: deposits at its savings bank unit and borrowings - so called advances from the Federal Home Loan Banks system. In 2007, 1st quarter $26.5 billion, 2nd quarter $28.8 billion, $51.1 billion, $47 billion. Countrywide was already near a cap on the amount of FHLB borrowings it could obtain under rules that limit those to 50% of assets held by the borrower.
Countrywide could no longer raise money through short-term borrowings in the capital markets or sales of mortgages other than those that could be guaranteed by government sponsored investors Fannie Mae and Freddie Mac. That forced Countrywide to rely much more heavily on two other sources of funding: deposits at its savings bank unit and borrowings - so called advances from the Federal Home Loan Banks system. In 2007, 1st quarter $26.5 billion, 2nd quarter $28.8 billion, $51.1 billion, $47 billion. Countrywide was already near a cap on the amount of FHLB borrowings it could obtain under rules that limit those to 50% of assets held by the borrower.
Friday, January 25, 2008
Toilet Tattoo
www.toilet-tattoos.com
Adorn the lid with a vinyl film that is removable, reusable and wipes clean. They're $10 each and come in a slew of patterns.
Autographed decals are being auctioned on Ebay beginning Feb. 11th, to raise money for the American Cancer Society.
Adorn the lid with a vinyl film that is removable, reusable and wipes clean. They're $10 each and come in a slew of patterns.
Autographed decals are being auctioned on Ebay beginning Feb. 11th, to raise money for the American Cancer Society.
Cool Cat
www.ModernCat.com
Cat owners, and cats, are purring over a recent onslaught of stylish cat furniture and accessories.
Litter-pan covers that double as benches, cabinets or planters (www.Kattbank.com). Wall-mounted scratching pads that look like low-hanging art works. Curvy kitty beds, chaises and perches that look like modern sculpture. Stainless-steel food dishes perfectly suited to a stainless-steel kitchen (www.FivePetPlace.com).
Cat owners, and cats, are purring over a recent onslaught of stylish cat furniture and accessories.
Litter-pan covers that double as benches, cabinets or planters (www.Kattbank.com). Wall-mounted scratching pads that look like low-hanging art works. Curvy kitty beds, chaises and perches that look like modern sculpture. Stainless-steel food dishes perfectly suited to a stainless-steel kitchen (www.FivePetPlace.com).
Home Sales Plummet
Sales plummeted 13% in 2007, the steepest annual dive in 25 years. The most severe real estate recession in a generation. And the median US home price fell, probably for the first year since the Great Depression. The 2008 outlook remains equally grim. Chief Economist for the Mortgage Bankers Association, Doug Duncan, says sales could fall a further 13% this year.
Bank of America
Yesterday, BofA sold $12 billion of preferred stock, twice as much as planned. Sold to bolster capital and help it absorb acquisitions after 4th quarter profit fell 95%. The 2nd largest US bank said it sold $6 billion of perpetual preferred shares and $6 billion of perpetual preferred shares convertible into stock. Perpetual shares do not have a maturity date. The preferred shares carry an 8% dividend. The convertible preferred shares carry a 7.25% dividend and a $50 conversion price, which is 25.3% above the bank's closing price. The shares fell 1.7%, to close at $39.90.
Wednesday, January 16, 2008
San Clemente - Land for Sale
It's hard to come by land in San Clemente.
25 acres are for sale off Avenida Presidio, $6.5 million.
The land is located just north of City Hall. The broker says, "We already have legal parcels for homes, or a single compound, and that some engineering has been done that shows three development opportunities: a 7-lot plan, a 24-unit cluster plan or a 28-lot plan."
Marcus & Millicap (949) 851-3030
25 acres are for sale off Avenida Presidio, $6.5 million.
The land is located just north of City Hall. The broker says, "We already have legal parcels for homes, or a single compound, and that some engineering has been done that shows three development opportunities: a 7-lot plan, a 24-unit cluster plan or a 28-lot plan."
Marcus & Millicap (949) 851-3030
Billionaire, Sheldon Anderson
The 3rd wealthiest man in America is days away from the Friday debut of his splashy 50-story Palazzo Resort-Hotel-Casino, in first new hotel on the Las Vegas strip in three years.
The $1.9 billion, 3000 room hotel casino, with the attached 4000 room Venetian and Sands Expo and Convention Center. The Palazzo will be part of a 19-million square foot edifice that Las Vegas Sands says is the largest hotel convention complex under one roof in the world.
With an estimated net worth of $28 billion, the 74-year old goes full throttle with new casinos. In the 1980's he owned the nation's biggest computer trade show, Comdex. He first bought the old Rat Pack haunt of the Sands Hotel in 1989, and then attaching it to the largest privately owned convention center in the nation. In the mid-1990's he demolished itm abd sikd Comdex for $862 million to help finance the all-suite $1.5 billion Venetian, which opened in 1999.
The Venetian and Palazzo are the only Strip properties without unions. His company provides free car washes and on-site day care to employees, among other amenities.
Adelson and Wynn were the only Las Vegas gamers to win licenses to build casinos in the former Portuguese colony of Macau when Beijing decided in 2001 to end the crime-riddled gambling monopoly of Hong Kong tycoon Stanley Ho. But their approaches, couldn't be more different. Alderson racing to open the casino-only Sands Macao by 2004 to start cashing in on the Asian appetite for gambling. Wynn has trodden more carefully. With the success of Sands Macao, Adelson has able to finance a string of nearby resort casinos known as the Cotai Strip, "Asia's Las Vegas".
The $1.9 billion, 3000 room hotel casino, with the attached 4000 room Venetian and Sands Expo and Convention Center. The Palazzo will be part of a 19-million square foot edifice that Las Vegas Sands says is the largest hotel convention complex under one roof in the world.
With an estimated net worth of $28 billion, the 74-year old goes full throttle with new casinos. In the 1980's he owned the nation's biggest computer trade show, Comdex. He first bought the old Rat Pack haunt of the Sands Hotel in 1989, and then attaching it to the largest privately owned convention center in the nation. In the mid-1990's he demolished itm abd sikd Comdex for $862 million to help finance the all-suite $1.5 billion Venetian, which opened in 1999.
The Venetian and Palazzo are the only Strip properties without unions. His company provides free car washes and on-site day care to employees, among other amenities.
Adelson and Wynn were the only Las Vegas gamers to win licenses to build casinos in the former Portuguese colony of Macau when Beijing decided in 2001 to end the crime-riddled gambling monopoly of Hong Kong tycoon Stanley Ho. But their approaches, couldn't be more different. Alderson racing to open the casino-only Sands Macao by 2004 to start cashing in on the Asian appetite for gambling. Wynn has trodden more carefully. With the success of Sands Macao, Adelson has able to finance a string of nearby resort casinos known as the Cotai Strip, "Asia's Las Vegas".
$10 billion loss - Citigroup
New CEO ofCitigroup, Vikram Pandit, promised better results. "Unacceptable, we need to do better, and we will do better."
The nation's biggest bank announced a $10 billion 4th quarter loss, primarily because of an $18 billion write-down of assets related to subprime mortgages. The size of the write-down dwarfed Citigroup's October estimate of $11 billion.
A cut in its quarterly dividend, from 54 cents to 32 cents, saves $5 billion a year. The recent cash infusions include: $12.5 billion from a group of investors, plus an earlier $7.5 billion from Abu Dhabi, and plans to sell $2 billion of new shares to the public. Layoffs of 4,200 employees, out of 300,000 worldwide. Further layoffs could be ahead. Last spring, 17,000 were laid off.
The nation's biggest bank announced a $10 billion 4th quarter loss, primarily because of an $18 billion write-down of assets related to subprime mortgages. The size of the write-down dwarfed Citigroup's October estimate of $11 billion.
A cut in its quarterly dividend, from 54 cents to 32 cents, saves $5 billion a year. The recent cash infusions include: $12.5 billion from a group of investors, plus an earlier $7.5 billion from Abu Dhabi, and plans to sell $2 billion of new shares to the public. Layoffs of 4,200 employees, out of 300,000 worldwide. Further layoffs could be ahead. Last spring, 17,000 were laid off.
Investors
Citigroup and Merrill Lynch each have lined up billions of dollars in financing from around the world.
Kuwait Investment Authority
Founded in 1953, one of the most experienced of the petrodollar-rich Middle East government investment funds. With assets at more than $200 billion, KIA will provide part of the $12.5 billion capital infusion into Citigroup, plus a portion of the $6.6 billion injection into Merrill. KIA is smaller than neighboring Abu Dhabi Investment Authority, which some estimate controls just under $1 trillion and which snapped up a $7.5 billion stake in Citi last year.
Kuwait Investment Authority
Mizuho Financial Group
Created when three big, battered Japanese lenders merged in 1999 amid Japan's long banking crisis. Based in Tokyo, one of the world's largest banks by assets, with $1.4 trillion in assets as of September 30, 2007. Investing $1.2 billion in Merrill.Saudi Prince Alwaleed
52-years old, nephew of Saudi King Abudullah, Prince Alwaleed bin Talal is one of the world's wealthiest men, with assets estimated at more than $20.3 billion. Based in Riyadh, he is providing part of the capital infusion in Citigroup. In 1991, he ponied up $590 million, becoming one of Citi's biggest investors.Government of Singapore Investment Corp.
Set up in 1981 to run the tiny but rich nation's foreign exchange reserves. Oversees well above $100 billion in assets. Reportedly investing $6.88 billion in Citigroup. Last month, it snapped up 9% of UBS AG, joining an unidentified Middle Eastern investor to inject $11.5 billion into the Swiss bank, GIC chipped in $9.6 billion of that.Korean Investment Corp.
Seoul based, one of the newest and smallest sovereign wealth funds with $30 billion in assets. Bought $2 billion of Merrill Lynch preferred shares. The investment is the latest sign the world's #13 economy is maturing.Olayan Group
Family-owned, taking part in a $6.6 billion investment in Merrill Lynch. Founded in 1947, it is a diversified empire of some 50 companies and affiliates.Capital Research & Management
Founded in 1931, Los Angeles based, has quietly grown to be the largest manager of stock and bond mutual funds in the US with more than $1.1 trillion under management. It is taking part in the $12.5 billion capital infusion in Citigroup.New Jersey Division of Investment
Runs the state's $81 billion pension fund, the 9th largest public fund in the country. It invested $400 million in Citigroup preferred stock and $300 million in Merrill Lynch preferred stock.T. Rowe Price Group
The 6th largest US mutual fund company and long-time player in the 401(k) market. Manages nearly $400 billion. It is taking part in the Merrill investment.
Monday, January 14, 2008
Make It Right - New Orleans
On their website, is a rolling honor roll of donors totals, $9.9 million of the $22.5 million has been raised to date. Enough to sponsor 66 of the 150 homes.www.makeitrightnola.org
Friday, January 11, 2008
The Office of Federal Housing Enterprise Oversight
OFHEO analyzed possible impacts from a House bill and a Senate bill.
The House bill, H.R. 1427, would allow higher-cost areas a new limit that would be the lower of either the median area home price or 150% of the current limit — that equates to $625,500, which is the current limit in Alaska, Hawaii, Virgin Islands and Guam.
The Senate bill is similar but the increase would only be for the year after it was enacted.
The House bill, H.R. 1427, would allow higher-cost areas a new limit that would be the lower of either the median area home price or 150% of the current limit — that equates to $625,500, which is the current limit in Alaska, Hawaii, Virgin Islands and Guam.
The Senate bill is similar but the increase would only be for the year after it was enacted.
www.ofheo.gov/media/research/MMNOTE11108.pdf
Thursday, January 10, 2008
MySpace Celebrity Channel
A marketing and PR Tool aimed at the 110 million users of MySpace.
www.celebrity.myspace.com
By personally managing their site, information, photos - celebrities can exert greater influence over their own image.
Insuring Debt Against Default
The annual cost of insuring $10 million of debt against default, has been on the rise. Bear Stearns, in October 2007 was paying $76,000 for such protection. Three months later, this amount has tripled to $234,000. Citigroup debt protection for five years jumped to $94,000, up from $67,000 in December, and $27,000 in October. Merrill Lynch debt is $164,000, up from $140,000 at years end and $60,000 in October.
Such protection is less expensive for debt issued by the troubled nation of Pakistan than it is for debt issued by MBIA or Countrywide.
Such protection is less expensive for debt issued by the troubled nation of Pakistan than it is for debt issued by MBIA or Countrywide.
Cattle Farmers - Dry Season
Last year, precipitation in the Southeast region of the US was the lowest its been in a decade, it was the 2nd-driest year since 1895.
The Southeast, defined as Virginia, North Carolina, South Carolina, Georgia, Alabama, and Florida - accounts for 25% of calf production in the US. But without rain to nourish pastures, hay and forages, the cost of feeding cows is becoming untenable.
A cattle farmer in Georgia says he used to pay about $25 per roll of quality hay, now the price is double.
Beef prices have risen 5% to $3.81 in November 2007, from $3.63 in January 2007.
Countrywide - Overdue Loans
Countrywide reports another rise in overdue loans. The Calabasas, California company was the nation's largest home-mortgage lender in terms of loan volume for the first nine months of last year. Shares of the company fell to $5.12, their lowest close since May 1996.
In a monthly update, Countrywide said payments in December were overdue on 7% of the total loans it services, up from 5% a year ago, and 6.3% in November. Foreclosures were pending on 1% of all loans serviced, up from 0.65% a year earlier.
In a monthly update, Countrywide said payments in December were overdue on 7% of the total loans it services, up from 5% a year ago, and 6.3% in November. Foreclosures were pending on 1% of all loans serviced, up from 0.65% a year earlier.
Foreign Capital
Merrill Lynch and Citigroup.
Merrill is expected to get $3 billion to $4 billion, much of it from a Middle Eastern government investment fund. Citi could get as much as $10 billion, likely all from foreign governments.
Such large investments, are the latest sign big banks are undergoing a rapid recapitalization to stabilize their shaky financial foundations. Already, foreign governments have invested about $27 billion in Merrill, Citi, UBS, AG and Morgan Stanley.
UBS (GIC, Singapore) $9.8 billion
Citigroup (Abu Dhabi Investment Authority) $7.5 billion
Morgan Stanley (China Investment Corp) $5.0 billion
Merrill Lynch (Temasek Holdings, Singapore) $4.4 billion
Bear Stearns (Citic Securities, China) $1.0 billion
Merrill is expected to get $3 billion to $4 billion, much of it from a Middle Eastern government investment fund. Citi could get as much as $10 billion, likely all from foreign governments.
Such large investments, are the latest sign big banks are undergoing a rapid recapitalization to stabilize their shaky financial foundations. Already, foreign governments have invested about $27 billion in Merrill, Citi, UBS, AG and Morgan Stanley.
UBS (GIC, Singapore) $9.8 billion
Citigroup (Abu Dhabi Investment Authority) $7.5 billion
Morgan Stanley (China Investment Corp) $5.0 billion
Merrill Lynch (Temasek Holdings, Singapore) $4.4 billion
Bear Stearns (Citic Securities, China) $1.0 billion
San Clemente - Land for Sale
Residential Land, in San Clemente.
Just under 3 acres, tract map is approved for 9 custom estate size lots (13,000 to 15,000 square foot each).
Price: $10.5 million
Just under 3 acres, tract map is approved for 9 custom estate size lots (13,000 to 15,000 square foot each).
Price: $10.5 million
Tuesday, January 8, 2008
Movies - Weekly Top 10
"National Treasure: Book of Secrets" continues its reign at the box office for the 3rd week in a row.
- National Treasure ($171 million)
- Juno
- I Am Legend ($228 million)
- Alvin and the Chipmunks ($176 million)
- One Missed Call
- Charlie Wilson's War
- PS I Love You
- The Water Horse
- Sweeney Todd
- Atonement
Hotel School
Cornell's prestigious hotel school, founded in 1922 and the nation's oldest, was once one of few academic options for students wanting to be managers at hotel or other hospitality companies. But the thriving Cornell institution no longer has the corner on the training of the USA's innkeepers. About 200 schools now offer bachelor's degrees to students majoring in hospitality management, a five-fold increase over the past 25 years.
San Diego State's School of Hospitality & Tourism Management started with 13 students in 2001 and now has 500. At the University of Central Florida, the number of students majoring in hospitality management rose from about 85 in 1999 to 2,000 today.
A board member of an association which represents schools with hospitality programs, says a record number of students - 50,000 - are currently enrolled nationwide.
According to San Diego State dean of the program, "We're going from an accidental industry to one where there's an explosion of hospitality schools, and the bar is getting raised."
The $133 billion US industry grew from 32,000 hotels in 1987 to 49,000 hotels today, and the number of hotel brands has increased significantly.
This spring, most hospitality school graduates looking for hotel jobs will get multiple job offers at an annual salary of at least $40,000. Many graduates have annual salaries above $70,000 within three years (according to University of Memphis interim director Richard Zurburg).
John Howie, owner of a hotel in Buffalo first pitched the idea to Cornell in 1912. Howie believed that many hotels could be improved by college-educated managers, and that American travelers deserved better than sleeping on straw mattresses in drafty inns above noisy taverns.
Marriott, the nation's largest hotel company, has a 10-person staff that recruits at more than 75 hospitality schools. It expects to hire 300 to 400 hotel school graduates annually during the new few years.
San Diego State's School of Hospitality & Tourism Management started with 13 students in 2001 and now has 500. At the University of Central Florida, the number of students majoring in hospitality management rose from about 85 in 1999 to 2,000 today.
A board member of an association which represents schools with hospitality programs, says a record number of students - 50,000 - are currently enrolled nationwide.
According to San Diego State dean of the program, "We're going from an accidental industry to one where there's an explosion of hospitality schools, and the bar is getting raised."
The $133 billion US industry grew from 32,000 hotels in 1987 to 49,000 hotels today, and the number of hotel brands has increased significantly.
This spring, most hospitality school graduates looking for hotel jobs will get multiple job offers at an annual salary of at least $40,000. Many graduates have annual salaries above $70,000 within three years (according to University of Memphis interim director Richard Zurburg).
John Howie, owner of a hotel in Buffalo first pitched the idea to Cornell in 1912. Howie believed that many hotels could be improved by college-educated managers, and that American travelers deserved better than sleeping on straw mattresses in drafty inns above noisy taverns.
Marriott, the nation's largest hotel company, has a 10-person staff that recruits at more than 75 hospitality schools. It expects to hire 300 to 400 hotel school graduates annually during the new few years.
Monday, January 7, 2008
Henry Diltz
A new book, gathers his finest work.
"A musician's life is hanging out, and I knew how to hang out." - Henry Diltz
Diltz fell into photography when his music career faltered in the mid-1960's. He bought a $20 used camera while on tour and a sold a shot o the Lovin Spoonful to Teen Set magazine for $100. Forty years later, his archives comprise "California Dreaming" a 344-page, large-format book of more than 500 photos taken between 1966-1975. Price: $450
He has shot more than 200 album covers, and never took a photography class.
Break on through.
Morrison Hotel, a transient hotel in downtown Los Angeles provided the cover image for The Doors 1970 album, "Morrison Hotel". Though a young clerk behind the front desk nixed a photo shoot, the group rushed back into the lobby after he slipped into an elevator. Diltz says, "They - the Doors - ran in, got behind the window, and I took one roll of film before anyone noticed. Then Jim (Morrison) said, Let's get a drink. We went to a place called the Hard Rock Cafe in skid row. He loved the stories the old winos told him. That photo, on the back cover, showing the group at the bar, gave rise to the London-based chain of Hard Rock Cafes.
"A musician's life is hanging out, and I knew how to hang out." - Henry Diltz
Diltz fell into photography when his music career faltered in the mid-1960's. He bought a $20 used camera while on tour and a sold a shot o the Lovin Spoonful to Teen Set magazine for $100. Forty years later, his archives comprise "California Dreaming" a 344-page, large-format book of more than 500 photos taken between 1966-1975. Price: $450
www.genesis-publications.com
He has shot more than 200 album covers, and never took a photography class.
Break on through.
Morrison Hotel, a transient hotel in downtown Los Angeles provided the cover image for The Doors 1970 album, "Morrison Hotel". Though a young clerk behind the front desk nixed a photo shoot, the group rushed back into the lobby after he slipped into an elevator. Diltz says, "They - the Doors - ran in, got behind the window, and I took one roll of film before anyone noticed. Then Jim (Morrison) said, Let's get a drink. We went to a place called the Hard Rock Cafe in skid row. He loved the stories the old winos told him. That photo, on the back cover, showing the group at the bar, gave rise to the London-based chain of Hard Rock Cafes.
DVD Sales
For the first time since the format was launched in 1997, consumers spent less on DVD's than in the previous year. Total sales and rentals of DVD's amounted to $23.4 billion in 2007, about 3% lower than 2006. Broken down, rentals remained steady at $7.5 billion while sales of new DVD's declined $600 million.
Thursday, January 3, 2008
Oil - $100 a barrel
Crude oil prices rose above $100 per barrel and closed just below $100 yesterday. That, is a first.
The price of oil accounts for roughly two-thirds of the pump price of gasoline, according to the US Energy Information Administration.
January 2, 2008 $99.62
January 2, 2007 $61.05
The price of oil accounts for roughly two-thirds of the pump price of gasoline, according to the US Energy Information Administration.
January 2, 2008 $99.62
January 2, 2007 $61.05
Wednesday, January 2, 2008
Movies - # of Sequels
In 2008, only 16 sequels are slated for the big screen. Far below the annual average of 25, since 2003. Five of the six biggest movies of last year, were sequels.
- January 25 - Rambo
- May 2 - Iron Man
- May 22 - Indiana Jones
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