Finance
Economy Watch: The Business Cycle Abides
The case for pessimism might now be spreading to Wall Street after its recent flirtation with the 10,000 highlands, since the Dow Jones Industrial Average was down 104.22 points, or 1.05 percent, on Monday, ending well below 9,900. The S&P 500 and the Nasdaq were also off, 1.17 percent and 0.59 percent respectively.
As Gov’t Demand Buoys DC Office Market; ING Makes $73M Sale
The Washington, D.C., office market may have reached a turning point in demand as the region experienced improved fundamentals last quarter—figures propelled by expanded demand for government office space. And if deals like the recent $73 million sale of an office building in Falls Church, Va., are any indication, buyers are taking interest in the area’s strong demographics..
Economy Watch: Capmark Files for Bankruptcy
Major commercial real estate lender Capmark Financial Group Inc. and various subsidiaries have filed for Chapter 11 bankruptcy, which last month the company had warned was coming. The move will allow the Capmark to reorganize and, very likely, delay selling off some of its $20 billion-plus in assets at less-than-desirable prices.
Economy Watch – Homebuyer Tax Credit Sees Some Cheating
In testimony reminiscent of dogs getting credit-card applications approved back during the mid-2000s credit bubble, a Treasury Department inspector told Congress that kids as young as four years old have been able to receive $8,000 first-time homebuyer tax credits. “Some key controls were missing to prevent an individual from erroneously or fraudulently claiming the credit,” J. Russell George told the House Ways and Means Committee’s oversight panel on Thursday.
Economy Watch: Beige Book Describes Modest Recovery
The Federal Reserve’s most recent Summary of Commentary on Current Economic Conditions, better known as the Beige Book, wasn’t exactly cheerful about the state of the U.S. economy toward the end of annus horribilis 2009. But it wasn’t precisely pessimistic either.
Economy Watch: No Rush to Build More Houses
U.S. housing starts posted a gain in September, but only a modest one,pointing to a still-modest rate of recovery for the overall economy.According to the U.S. Department of Commerce, the rate of new homestarted inched upward by 0.5 percent during the month to a seasonally adjustedrate of about 590,000 units. Ever-optimistic economists, it seems, wereexpecting more.
Economy Watch: More Medicine for Ill Housing Market
The U.S. housing market might not be quite as deathly ill as it was a year ago, but no one is suggesting–to stretch the health metaphor–that it will get up and run a marathon any time soon. In fact, the industry is wheezing and gasping a little at the thought of the looming expiration of the $8,000 first-timer tax credit, so plans have been hatched in Congress to keep the credit in place.
Economy Watch: More Bank Failures Dead Ahead
Which bank will be lucky 100th bank to fail in 2009? Or more fittingly, the unlucky 100th? The world will have to wait until next weekend.
Economy Watch – Foreclosures Trend Upward in Usual Places
More than 925,000 U.S. homeowners received a foreclosure notice of some kind — a default notice, scheduled auction or bank repossession — during the third quarter of 2009, according to RealtyTrac, a figure that represents a 5 percent increase over the second quarter and a 23 percent increase over 3Q08. One in every 136 U.S. housing units received a foreclosure filing during the quarter, which was the highest quarterly foreclosure rate since the company began issuing its report in the first quarter of 2005 — though admittedly, that was during the run up to the bubble peak.
Economy Watch – Feds to Publish CRE Loan Modification Guidelines Soon
The heads of the Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and Office of Thrift Supervision were all before the U.S. Senate Subcommittee on Financial Institutions on Wednesday sounding a warning about bad commercial real estate loans and their threat to the health of the banking system, none of which is news, but all of which is troubling.