Housing Slump Tarnishes Trump Name

Well-to-do buyers weren't immune to wacky loans, and they're coming due

(NEWSER) - The country's most expensive homes are now making up a larger segment of foreclosures in the most recent spike of mortgage defaults. An analysis of recent data shows that 30% of June foreclosures involved homes valued in the top third based on location; that’s up from just 16% at the beginning of the crisis. “The slope of that curve in recent months is much sharper than it was recently,” an economist tells the Wall Street Journal. More»

(NEWSER) - Would-be homeowners with good credit are finding themselves shut out of the mortgage market by stiff restrictions from wary lenders, the New York Times reports. Many believe that in an effort to move away from the laxness blamed for the financial crisis, lenders have gone too far the other way and are now turning away people who should be considered perfectly good risks. As a result, non-foreclosure sales are still at a quarter-century low. More»

Bleak outloook makes financing a tall order for 92-story skyscraper

(NEWSER) - Donald Trump's 92-story Chicago tower has been hit by a triple-whammy of the credit crunch, the housing slump, and sagging retail sales, making foreclosure a real danger, the Wall Street Journal reports. Trump, who developed the tower without partners, owes $1 billion on the project but has so far sold only $600 million in condo units and condo-hotel units. He's looking for an extension on a key loan due this Saturday. More»

More ugly news makes for yet another volatile day

(NEWSER) - Stocks remained volatile and swung lower at the end of the today’s session,as bad economic news convinced investors the financial crisis is not over yet, MarketWatch reports. The Dow closed down 127.04 at 8,852.22, but posted a weekly gain after four weeks of losses. The Nasdaq lost 6.42 to 1,711.29, and the S&P 500 fell 5.88 to settle at 940.55. More»

Fed should ignore critics, hold its ground until markets rebound

(NEWSER) - Critics claim the Federal Reserve has been too eager to cut interest rates, and that lax policy has exacerbated inflation. But the Fed should hold its ground, Desmond Lachman argues in the American, until the housing and credit markets are clearly on the rebound. The credit crunch has prompted banks to compensate with higher spreads and tighter lending standards, which should offset inflationary concerns. More»