Mohave.net

Mohave.net
Discussing Mohave County Arizona Housing Market and other topics

Bank Failures – IndyMac Seized

July 12th, 2008

I said months ago that there would be be bank failures from this fiasco. If anyone has any money, they need to be sure it is in an insured account and this includes retirement accounts. This is the biggest so far, but others are on the same banana peel. Wachovia and Wamu are two other large banks that are in danger.

http://tinyurl.com/5s57cp

Latest victim of mortgage crisis, IndyMac taken over

By Jonathan Burton & John Letzing, MarketWatch
Last update: 8:31 p.m. EDT July 11, 2008
Comments: 438

SAN FRANCISCO (MarketWatch)– IndyMac Bancorp Inc. became the biggest casualty of the subprime mortgage crisis on Friday, as federal regulators shut down the troubled Pasadena, Calif.-based savings bank in one of the largest U.S. bank failures ever.

The Federal Deposit Insurance Corp. said in a statement it will take over operations of IndyMac
, which will open for business on Monday as IndyMac Federal Bank. The thrift had total assets of $32.01 billion as of March 31.

http://tinyurl.com/5omaba

Regulators seize IndyMac Bank
Updated 55m ago | Comments113 | Recommend16

LOS ANGELES (AP)— IndyMac Bank’s assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.

The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.
***********
….And the importance of being sure you are covered……………………

“Some 10,000 depositors had funds in excess of the insured limit, for a total of $1 billion in potentially uninsured funds, the FDIC said.”

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Harvard University Annual Housing Report

June 24th, 2008

Shaky job market threatens housing recovery
Housing slump rivals deepest slowdowns in 60-plus years: Report

By Amy Hoak, MarketWatch
Last update: 12:01 a.m. EDT June 23, 2008
Comments: 177
CHICAGO (MarketWatch) — The housing slump, already shaping up to be the worst in a generation, still hasn’t run its full course, according to Harvard University’s annual report on housing, released on Monday.

Housing Slump

The State of the Nation’s Housing 2008
Joint Center for Housing Studies

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Las Vegas Links

June 22nd, 2008

Here are a few LV links on the housing market, unemployment and Coyote Springs.

Coyote Springs is a development 60 miles north of LV that was considered a “sure thing” for LV employees looking for less expensive housing. I pointed out last year that this subdivision was 40 miles closer to LV than Golden Valley, in the same state for simpler tax purposes and on a road (I15) with faster speed limits. I thought this had a much better chance of being a “bedroom community” for LV than Golden Valley. I was mocked by all the local speculators and realtors for not being very smart. Coyote Springs was supposed to have 150,000 houses and be a “planned development”. Now they don’t intend to even start building until late 2009. I thought even 60 miles to commute was out of line, let alone 105. Seems that gas prices are making this irrational commute even less appealing. Even in California, very few people commute those distances every day. The idea that LV workers are going to commute to Golden Valley every day is just ridiculous, regardless of what the speculators and realtors say.

Expensive commuting not holding the charm
Gas price spike could bode ill for an outlying place like Coyote Springs
http://www.lasvegassun.com/news/2008/jun/19/expensive-commuting-not-holding-charm/

Local existing-home sales surge
Resales pass 2,600 units for first month since March ‘07; new-home sales stall
http://www.lvrj.com/business/20557609.html?numComments=44

ECONOMY: State’s jobless rate at 14-year high
Construction, casinos see Southern Nevada job bases dwindle
http://www.lvrj.com/business/20625594.html

Nevada’s unemployment rate surges to 6.2 percent
http://www.lvrj.com/breaking_news/20603459.html

The Las Vegas Economy: How Is Sin City Coping?
http://www.gambling911.com/Las-Vegas-Economy-062008.html

A few older links:

No neighbors, no neighborhood
http://www.lasvegassun.com/news/2008/may/21/no-neighbors-no-neighborhood/

DEVELOPMENT: LV land prices rise in quarter
Excluding sales around Strip area, average price was $939,400 in 2007’s final three months
http://www.lvrj.com/business/15760492.html

REAL ESTATE: Down, down, down
56 of 61 Las Vegas Valley ZIP codes show falling home values
http://www.lvrj.com/business/15918837.html

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Buyer Beware Land Sales & More

May 9th, 2008

Base on sales records I’ve been watching the last several months, the Golden Valley area has the potential to become a poster child for land sales fraud. Similar to the infamous “swamp” land sales of Florida in the 1920’s.  I’ve been reading complaints from buyers on internet forums and comments from realtors that say Arizona is a “buyer beware” state.

I recently saw two lots advertised for sale in a Golden Valley “subdivision” I hadn’t heard of before.  Looking them up, I saw that they are in an area where apparently someone split acreage into 1 acre plots and was selling them for 16k and up per acre.  I haven’t driven to see them yet, but I believe there are no roads even cut in and of course like most land in Golden Valley, no utilities or water available.

These two caught my eye because they were listed at 10k each, less than the others.  As most land in GV bought recently, they had an out of state owner. Looking up the records, to thicken the plot, they had been purchased in March 2008, for 16k and were now back on the market less than two months later for 10k.  I’m not sure if the original sale used a realtor or not, but apparently the purchaser did not do any investigating.  He will probably lose the entire 32k he spent on the lots, unless he finds an equally trusting buyer who jumps on the chance to purchase these lots for 10k each.  Then he’ll only loose 12k plus the cost of buying and selling them.  According to the county maps these lots do not just have a wash running through a portion of the property as many do, but both lots actually ARE a wash. I see no way they could be used for anything based on the tax map.  I see no comments on the listing regarding this piece of information.

I am astounded at the number of buyers who are purchasing land with no utilities or water available and many times no roads even cut in, for prices that they could purchase land with utilities etc. in most any other state, including California.  Many times the properties have washes that make them unbuildable, even if someone actually wanted to build in an area with no roads or utilities. 

The prices have gotten so out of line that there is little chance of attracting an end user that would like to purchase a lot and build a home or place a manufactured home on the lot.  Especially knowing they would have to live “off the grid”.  An option that used to be popular because of the low cost of land. Purchasers now are apparently counting on irrational appreciation and sales to “developers”.  And those speculators that don’t even investigate the property before purchasing, are being taken for a ride in huge numbers.

I also recently saw a home in GV for sale that I looked up because of the price which was considerably less than others that were as new.  It appears that the home was built in the wash that was flooded a year or so ago and was reported on in the paper.  Renters scurried from the houses and apparently lost all their belongings.  They did not realize that their homes were built in a wash. 

I wondered at the time how someone could build homes in a wash and assumed it was a builder not familiar with the area.  Looking up property owners in the area, I found that not to be the case and that the builder was a local builder.  All the homes that were sold in this “wash” were sold to out of state buyers who bought more than one apiece (one sold for 219k and others for about 189k)  and then rented them to families.  These same buyers also bought multiple homes in other areas built by the same builder.  Many are now in foreclosure and values have dropped over 100k in all cases.  The land not built on is still owned by the local builder who also built the home currently for sale.

Looking at the posting for the home for sale, I see nothing mentioned about the wash or the prior flood.  They do say the home needs tlc and the pictures show it is missing the appliances.  Because of the price, I expect someone will purchase it as a rental and put another family at risk.  If they purchase it without checking out the area, they might not even know the problems.  And apparently, the realtors are not going to put this risk out there in bold print.  I can’t imagine anyone selling real estate here does not remember the story.

Another home that just came on the market, is located in Kingman in a subdivision where every home has been in foreclosure or is still owned by the builder or his employee.  There are few owner occupied, most are vacant or rentals.  The listing says “fanastic price”, except that it is not.  There is, currently on the market, another model with an additional 350 square feet for $2600. less. Also 7 other homes for $12,500. more, that have the same additional 350 square feet.  And several more just now entering foreclosure.  And all of the current sales are at discounts of 100-130k off of the original sales prices.  I wonder how many realtors don’t mention any of this to propective buyers.

Because of the secrecy of the mls system and the lack of past records of sales available online from the tax collecter in this county, buyers are going to have a difficult time discovering any of these things.  If realtors don’t give this information to the buyers, I can see law suits out the ying yang appearing as things get worse.   

In other states, these type of law suits are being dismissed because the information on properties and sales were readily available to the buyer on the internet.  That is not the case here, and I think that might come back to haunt some of the locals who are less than forthcoming about the properties they are selling.  “Due dilligence” for buyers is very difficult, if not impossible.  Particularly for out of state or recent residents who might not even know where to look for the information.

Recent sales information on the tax collector site used to be a clickable link which showed the past sales for the property in a list with dates and sales prices.  The link disappeared right about the time homes started selling for double and triple the last sale and land was showing multiples of 20 times and more what the last sale was.  I imagine it was hard for realtors to explain why the seller was getting hundreds of thousands of dollars for owning property for as little as a couple of weeks.  I saw one land parcel go from a sale of 100k to 5.5 million in less than a year and it was back on the market for over 11 million at the time.  And then magically the links disappeared from all the tax records.  I don’t know the reasoning for removing the prior sales from the online tax records, but it seems very deceptive to me and not normal for most states to hide that information from possible buyers.

Foreclosures on land are becoming more noticeable and much larger in dollar amount.  I recently saw one in Bullhead for over 16 million dollars.  Unpaid property taxes are also very noticeable, especially on this last payment due.  And include at least one prominent land owner who has the majority of his hundreds of properties showing delinquent taxes and at least one parcel just had a trustee sale posted.  Since some land owners use multiple names to purchase property, these notices are somewhat disquised by being under the less familiar names. 

There is the potential for billions of dollars in losses for banks/lenders that loaned in this area, based on sales prices that were way out of line for desert land with no utilities, water or roads that were purchased by speculators, both big and small, with visions of dollar signs in their heads and lacking the financial means to back up their purchases. 

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Another Rant on the Mohave County MLS Board

May 3rd, 2008

This is a continuation of my previous two posts on the Mohave MLS. 
 
This is the direct quote from the site I was using regarding their removal of addresses, locations, and directions per the Havasu/Kingman MLS:

 

“This policy will be enforced for all internet-based displays of listings in this market (addresses of properties for sale are not allowed on the internet in Lake Havasu).”
 
This is the reply when I questioned why pictures were also not displayed. Apparently if pictures were allowed, those pesky buyers could just drive around all through the city and find the house for sale.
 
“But this change affects all web site that show listed properties in our county. Unless a buyers goes to the MLS website they won’t be able to view any pictures or addresses. “
 
Actually this is wrong though. Even the public MLS site does not have addresses. They have pictures, but no addresses.  The “public” ie “buyers” are not to be trusted with this info apparently.
 
 
************
Now for the past two weeks I have been emailing back and forth to a realtor in Kingman that came unglued because I made comments about the mls “board”. He felt I was out of line. I’ve decided to put up some of my replies to his emails. I’ve only put my replies, you’ll have to guess at his statements.  And if you doze off during this very long post, I’ll understand.  But I did cut out at least half of my answers and all of his.……………
 
 
I think they’ve made it pretty clear that no one is allowed to post addresses on the internet in this county.  Which makes Mohave stand out against 99% of the rest of the country, including California, Nevada and the rest of Arizona.  All of which not only have addresses on realtor.com, but on various other web sites.  I guess they want to sell houses, strange concept.
 
That is what makes me furious and tells me that your head honchos feel their mls info is so secret that no one should be able to use it to buy or sell a house.  And they will fight having any info on the internet regardless of how difficult that makes it for buyers in the area.  If that isn’t egotistical, I don’t know what to call it.  I could call it tyranny I guess, does that suit you better?
 
Your board has made it impossible to even find out what area a house is in, let alone the address.  And apparently they could care less , they have no concern about what buyers or sellers want, only what they think is best for them. 
 
************
I was just as furious when they took the addresses out of realtor.com in 2006.  Before they did that I could look each day and if I saw something interesting, I could email the specific realtor and ask questions.  It didn’t require me to bother anyone every day with questions.  Just like I still can in 99% of the country (the part you really don’t seem to get). I told you that when they took the addresses out, I stopped even looking.  Because if you think I’m going to email every realtor on every listing to find out where it is, you’re sadly mistaken.  Especially, as I told you at that time, I have had very few realtors in Kingman that even return emails.  Kingman seems to be in a twilight zone where realtors want to go back to the days where they get mls sheets each week and they have to manually go through looking at them with no computer access.  I hate to break it to them but most buyers these days use the internet and to banish that use seems very stupid and self serving.  And the droves of baby boomers you say are coming might not like being told they are not allowed to use the internet to shop.  Kingman may be archaic when it comes to computers and the internet, but most people in other states are not.  They will expect the same service they get in their present location and they will never get that here.
 
When my realtor, who I’d turned to because of Mohave pulling off of realtor.com,  came up with the HBSR site and  signed me up, it was wonderful.  Not only did I get all the new listings in my criteria every day, but I could look up streets to see what else might be listed on that street and also look up by mls number if I was curious about another property not in my criteria.  I could save the properties and be notified if anything changed.  I had quite a few properties saved when they had to wipe out the addresses and locations.  The fact that this was a non-public site and you cannot access it unless you are working with a realtor and they also need to re-subscribe you periodically, I see absolutely no reason that it should have been treated as if it was another realtor.com.  So, you may not agree with me, but I feel it was done just to show that they don’t care about anyone but themselves.
 
************
You keep trying to convince me and everyone else that Kingman is so unsafe that the rules were made because the safety of the sellers was a concern.  I said that’s bull and I still think so.  I asked questions and you just keep coming back with it’s unsafe in Kingman to put the addresses and that’s why the decision was made.  Do you think that will make buyers want to move here, knowing that this is one of very few areas in the country that is so unsafe that addresses are not allowed on the net?
 
************
I have never felt more dislike for any group of people than your “board”.  I think they are doing their best to discourage anyone from buying here and I pity your poor sellers.  I wonder if they realize how hard your group is trying to prevent anyone from knowing their home is for sale.  Like I said I would encourage anyone trying to sell in this town to NOT use the mls.  I don’t see the benefit.  Most realtors don’t advertise in the paper or in the “home” book and they’re not allowed to use the internet.  And who knows what they will outlaw next.  There are far more avenues on the internet available to a seller that are much further reaching than your secret society that no one is allowed to breach.  When I sold, in another state, I wanted the info out there everywhere possible.  Our house was even on the home show on TV, accessible to millions of people in our area and the address was prominently displayed, just like everyone else’s.  Even the homes with multi million dollar price tags, as I pointed out to you, have addresses listed.
 
I have never said you single handedly made the rules.  But you elected these people and you all seem to be okay with their decisions.  So I guess indirectly you are responsible for the rules.  I can’t believe that you are against them and absolutely no one else is.  I think a truer fact is that most of the realtors probably don’t even realize the addresses are not allowed on the internet nor the consequences in banning internet shopping.
 
**************
Why do you feel that people should pay you to give you advertising and tools to help you sell property?  I guess I just don’t get your thinking.  You do realize that the business that is getting the benefit of the advertising usually pays the advertiser, don’t you?  Isn’t the commission you receive enough?  Now you want the websites willing to advertise your property and/or the buyers to pay you to even be able to view the properties you have for sale?
 
************** 
 
This is where I have a problem with your thinking with the mls.  Why is getting this information into as many venues as possible, “a big problem”?  You have yet to explain to me why it is even an issue.  If it was me, I would be thrilled about all the FREE advertising of something that only I have and only I can sell.  What part of this don’t you get?  These are contracts, no one can purchase one of the listings without the listing agent getting her “cut”.  So why is it a horrible thing to advertise these homes on the internet, to a world wide audience? Why do you insist that this is a way of cheating the realtors?  First your reasoning was that Kingman is unsafe for sellers(when none of the rest of the country is) and now the reason is that it is stealing to use the mls info to sell property.  NO ONE can use the mls feed to sell a property, except a member of the mls.  And with hbsr, no one could even access the site without a realtor member of the mls.
 
Once again, tell me what this non-advertising gains……..
 
 
So now we no longer have hbsr.  We can no longer look at anything except fsbo’s or reo’s that are not listed by a broker.  There is no reasonable way to work with the mls without being a “member” of your mls.  I have the money and ability to purchase a home, but I will not continue to fight an entire real estate board just to be able to find out what is available.
 
 
So tell me how this benefits your group.  What did you gain by my not being able to see addresses on realtor.com and contact the listing broker?  What have you gained by taking away a realtor’s sales tool like hbsr, so that I can no longer look at and/or track properties with all the info included
 
************
I may be the only person in the world who has a problem with this, as you have indicated.  You say no one but me has ever complained.  But I suspect there are others who you will never hear from.  If, when I was looking for a place to relocate, I had not been able to look for properties with prices and addresses on line, I would have just moved on to another location.  You would never have heard from me.  I would assume that any place that does not allow shopping and comparing, has something to hide. I’m sure I’m not the only buyer in the country that wants this info before committing to a move.  Kingman is very backward when it comes to technology, but other places are not.  And buyers who might come from other areas might have expectations similiar to mine.  Especially Californians.
 
************
So I’m not longer furious or “unhinged” as you called me, just resigned to the fact that we will probably not buy anything here that is listed in the mls.  You guys win, but I’m not sure why you think it’s a win and exactly how my getting this information was “stealing” from your mls as you said.  I am extremely offended that this is what it all boils down to, my wanting information that I can get from any other mls in the country is somehow considered “theft” in Mohave and a “big problem” for realtors.
 

 

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More Mohave County Realtors

April 19th, 2008

Now it’s official, NO addresses of properties for sale in the Bullhead, Lake Havasu, Kingman, Golden Valley MLS area are allowed to be posted anywhere on the internet. And they intend to enforce it. Good job guys, take a bad market and send the interested potential buyers away.  This is the most ridiculous decision I have ever heard.

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Mohave County Realtors

April 18th, 2008

I am totally disgusted with the efforts of the mohave county realtors board to prevent anyone from looking for a home in this county. They continue to make it nearly impossible. I feel no empathy for the local realtors based on their efforts against buyers.

In the nearby states (and for that matter 99% of the country) realtors attempt to make their properties visible to as many potential buyers as possible.

But not our local realtors board. They are so egotistical that they think people are going to fight to find a home here rather than just go somewhere that the realtors actually want to sell a home.

They managed last year to remove all addresses from realtor.com, a public site that millions of people use. A site which displays addresses for California and Las Vegas and most of the rest of the country. The explanation I got at the time from a realtor was that it was dangerous to display the address.

So apparently California and Nevada and the rest of Arizona are considerably safer than Mohave county. In fact we apparently are more dangerous than 99% of the country, it is not safe to let buyers here find out addresses. Heaven knows what we might do with them. Buyers might actually find a house they are interested in purchasing and they still have to go through a realtor to view or purchase a home. I’m not sure what the boards real objective is here. Their egos outway their concern for sellers and/or buyers.

Realtors don’t advertise in the paper here. We have a “homes for sale” book, but very few realtors advertise in it. They don’t allow people to use the internet to find out properties for sale, every site that tries is stopped. If I was trying to sell a house here, I would wonder exactly why I use a realtor.

I could get the information out there in multiple places and save the realtor fee. I don’t see that the local realtors really want to sell homes, they are still stuck in the “everyone wants to live here, millions of baby boomers are moving here” stage.

I’m sure they are working on getting signs outlawed at this very moment. Because now, if you don’t care about the gas, you can drive around the areas you are interested in and see most of what’s for sale. I’m sure the board will want to nip that option in the bud.

The last straw happened last week. My realtor subscribes to a service that is similar to zip realty, a service buyers in many areas including California, have access to. Zip realty, however, is public and anyone can sign up, with or without a realtor. You can find out everything about properties in an area you are interested in. You can save info on properties and keep track of them. There are dozens of sites like this in other areas, zip just happens to be one of the largest and most well known.

The site my realtor uses is only available for someone working with a realtor, it is not a public site. According to my realtor, there is no cost to her to use the site. The buyers access expires every month or so and and if your realtor does not send you emails of new listings, you cannot view a new listing.

It was a great service that a realtor could provide to a potential buyer. You could save properties that you were interested in following and be notified every time something changed or pictures were added. You could search by a street name if you were interested in seeing what was available on a certain street. You could look up mls numbers from realtor.com and find out where a property was.

Last week the addresses were removed from the site, including the addresses that were on properties that I had saved. The directions to the properties were also removed, as well as the map views. Now the site is basically useless to a buyer.

I know the owners of the site wouldn’t take information off unless they were required to by the local board of realtors. So once again the local board of realtors has squashed an attempt by buyers to find out what is available in this county. They have taken what was a great tool for realtors/buyers and made it useless. All apparently in the name of “we don’t want our info “given away”".

I knew this was probably coming, based on a local board member trying to get the name of the site out of me a while back. He acted like I was doing something illegal by having access to the addresses of properties for sale. It probably took a little effort on their part, but they apparently figured it out and they’ve managed to get rid of another buyers/realtors tool. Congratulations TT, you’ve saved the home sellers from possibly getting interest in their homes.

Just when I thought, based on falling prices and foreclosures available, that I might actually be able to find a home that suits our needs. The local board of realtors has struck again. They are determined to get rid of those pesky potential buyers and I’m about to let them have their way. It’s just too much work trying to find out what’s available in this county, so they win. Between that and the anti senior/retirees sentiment expressed by the local realtors, why anyone would choose to retire here anymore is beyond me. If the realtors have any say in this, and apparently they do, we are obviously not welcome.

And sellers, you might want to rethink having a local realtor try to sell your home. They are determined to not allow anyone to even know it’s for sale.

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NPG Cable

March 26th, 2008

I visit topix.net forums and about 10 days ago could no longer go to the site.  After several emails to topix and being able to access the site if I wasn’t using NPG, it appears that NPG cable has recently blocked access to topix.net.  Not intentionally, I’m sure, but never the less, as far as I can tell, you cannot visit that site using NPG cable.  I don’t understand enough to try to deal with NPG cable’s tech people but if you use NPG cable and cannot get to Topix.net, you are not alone. If anyone understands dns servers, which I have been told is the problem, and can get NPG to fix this, I’m sure it would be appreciated.

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Housing and Credit Bubbles

March 19th, 2008

This file has apparently been removed from the web site.  Since it belonged to an investment company, they probably made them take it off.

 This pdf file from an investment firm has a lot of excellent charts showing what the credit bubble is all about and why it is far from over.  It’s 75 pages but a very good read.

***link removed***

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Credit & The Economy

March 19th, 2008

I’ve kind of stopped posting on here because of hostility from the real estate groupies.  But there is so much “un” truth being tossed around, I decided to at least start posting links again.  I don’t know if any “real” people read this, but I hate to think the realtors “buy now before prices shoot up again” spiel is being bought by anyone.  The country is in trouble and no one should buy a house thinking they can sell it for a profit.  If you want to buy and can afford the payments and have money in the bank to cover the payments if you lose your job, then you should be OK.  Otherwise buying now is a real gamble and could create major financial problems in the near future for those unprepared.

****** 
Chrysler to shut down for 2 weeks in July
http://www.marketwatch.com/news/story/chrysler-shut-down-two-weeks/story.aspx?guid=%7BB6AC5A33%2D1C78%2D470A%2DBDF6%2DAD8B7D51E53B%7D&siteid=bnb

*****
Freddie Mac sees home prices falling further
http://www.marketwatch.com/news/story/ceo-says-freddie-mac-sees/story.aspx?guid=%7B4980245A-5B7E-4EA6-B68B-8119100162E4%7D

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U.S. regulators unveil plan to revamp mortgage rules
http://www.reuters.com/article/bankingFinancial/idUSN1225290820080313

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The Fed is delaying the day of reckoning
http://www.ft.com/cms/s/0/5e9f14d6-f039-11dc-ba7c-0000779fd2ac,s01=1.html?nclick_check=1

*****
Most Economists in Survey Say Recession Is Here
http://online.wsj.com/article/SB120534519452630845.html?mod=hpp_us_whats_news

*****
Dollar Slumps Below 96 Yen to 12-Year Low on Subprime Losses
http://www.bloomberg.com/apps/news?pid=20601083&sid=a9Z0lnYk3QBQ&refer=currency

*****
Bear fire sale sparks rout on eve of Fed rate cut
http://www.reuters.com/article/newsOne/idUSN1650564120080317?pageNumber=4&virtualBrandChannel=0

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