Bank of China Ltd., the world’s third-largest lender by market value, had a wider-than-expected 59 percent drop in fourth-quarter profit on writedowns of U.S. mortgage investments and higher bad-loan provisions. Net income declined to 4.42 billion yuan ($647 million) from 10.77 billion yuan a year earlier, based on figures released by the Shanghai-based company. That fell short of the average 7.59 billion yuan estimate among 25 analysts surveyed by Bloomberg. Bank of China has lost more on mortgage investments than all other Chinese lenders combined as the U.S. housing collapse sparked a credit seizure. Speculation that most of the bank’s writedowns are behind it has helped push the stock 12 percent higher in Hong Kong this year, the second-best performance among Chinese lenders traded there.

http://www.bloomberg.com/apps/news?pid=20601089&sid=aCWpLvHL7FsA&refer=china

One in Five Americans Plan to Buy a House

While half of all Americans are concerned they or someone they know will face foreclosure in the next six to 12 months, 23 percent of adults plan to purchase a home in the next five years, and 53.5 percent of them happen to be first time homebuyers, according to a new survey commissioned by Move Inc., released Monday. The Move survey found the housing downturn, now entering its third year, has created demand for homeownership especially among first-time homebuyers. While 5.8 percent plan to purchase a home in the next 12 months, 12.8 percent of Americans say they plan to buy a home in the next two years and 11 percent plan to purchase a home in two to five years.

http://www.housingwire.com/2009/03/23/one-in-five-americans-plan-to-buy-a-house-report/

Fed’s Evans: U.S. growth should resume this year

The U.S. economy should start growing by the end of this year and unemployment, expected to peak at around 9 percent, will begin to decline in 2010, Chicago Fed President Charles Evans said on Tuesday
http://www.reuters.com/article/GCA-Economy/idUSTRE52N2ZU20090324

Last week, the Federal Reserve announced its intention to purchase a trillion dollars worth of Treasury debt by creating the little pieces of paper in your pocket that have “Federal Reserve Note” inscribed at the top. In effect, the Fed intends to monetize the Treasury debt in an amount that exceeds the entire pre-2008 monetary base of the United States.

http://www.hussmanfunds.com/wmc/wmc090323.htm

Hillarious. There have been several articles like these around. Where are the articles discussing home buyers weary of unrealistically priced homes for sale? I think that’s pretty much the subtext for the last 2 years of reports of declining home sale volumes. But it’s a theme rarely picked up by the media.

The government is all behind the concept that home prices must not fall. What if they applied the same theory to gasoline or corn flakes? You’d have market disequilibrium, and massive excess inventories of same. Sounds a lot like today’s real estate market.
It’s going to get much worse in NJ when people have to sell rather than just want to sell, while the population flees what is among the highest taxed, most private-employer-unfriendly states in the nation.

Good. This should remind me not to trade up houses in NJ in the next year or two, keeping my NJreestate exposure manageable.

So far, we’ve only seen 2 folks come by.

Good thing we rent.

Vandals target Sir Fred Goodwin’s house and carWindows smashed at home of former RBS boss

http://www.guardian.co.uk/business/2009/mar/25/sir-fred-goodwin-royalbankofscotlandgroup

that attitude is why I renewed my lease. 99% of sellers simply do not get it. it is pointless to try to negotiate with someone who thinks you are stealing from them.

There were 35 3bdrs below 500k for sale in westfield when I checked over the weekend. I think that # was below 10 a year ago.

I hope those hobokoners stay in Hoboken. Already enough wankers in this area.

I guess the point is moot because instead of the US failing a debt sale they decided to just print money and buy its own debt.

I watch debt sales by the US because student loans with variable rates are based upon the auctions that occur this time of year.

Does anyone have any predictions for the auctions or will the US keep buying its own debt?

http://www.ajc.com/business/content/business/stories/2009/03/24/spring_lowball_homes.html?ref=patrick.net

http://www.mcclatchydc.com/251/story/64734.html