Mainstream News

J.P. Morgan makes it easier for rich to take out mortgages

"J.P. Morgan Chase & Co. is loosening its underwriting criteria for big mortgages, as lenders ramp up competition to grab a bigger share of the high-end housing market. The nation’s largest bank plans to announce as soon as Tuesday that it is lowering the minimum credit score and down payment it requires for mortgages as big as $3 million. At the same time, some big banks are backing away from smaller loans where they see higher regulatory costs and litigation risks. By dollar volume, jumbo mortgages given out by lenders last year accounted for about 20% of all first-lien mortgages. That is up from 5.5% in 2009. The last time jumbo mortgages accounted for a larger share was in 2005." Continue reading →

Continue ReadingJ.P. Morgan makes it easier for rich to take out mortgages

U.S. Homeownership Rate Falls to 20-Year Low

"The U.S. homeownership fell to its lowest level in 20 years at the end of 2014—levels last seen when national leaders embarked on a broad push to expand homeownership in the mid-1990s. Over the past year, President Barack Obama and other administration officials have voiced alarm that lending has gone from one extreme during the bubble—too loose —to the other—too tight—in the aftermath of the bust. Officials have walked a fine line in attempting to bar a return of the reckless products and practices that allowed the bubble to inflate 10 years ago while loosening some standards elsewhere to provide broader access to homeowners without perfect credit or big down payments." Continue reading →

Continue ReadingU.S. Homeownership Rate Falls to 20-Year Low

Obama renewing call to reauthorize Export-Import Bank

"President Barack Obama is ramping up pressure on Congress to reauthorize the Export-Import Bank. The obscure federal agency's charter expired last month after lawmakers refused to reauthorize it. The bank underwrites loans to foreign companies purchasing American products, but conservatives call it corporate welfare. Obama on Wednesday plans to meet at the White House with owners of small- and medium-size businesses that have benefited from the bank. Senate Majority Leader Mitch McConnell of Kentucky has floated the possibility of attaching the bank's reauthorization to a six-year highway and transit bill." Continue reading →

Continue ReadingObama renewing call to reauthorize Export-Import Bank

Aussie, Kiwi And Loonie Under Commodity Currency Attack

"Recent actions and rhetoric from Commonwealth Prime Ministers, and their respective policy makers, have put their commodity sensitive currencies under pressure. In Australasia, the kiwi ($0.6592) and Aussie dollar ($0.7370) both linger within striking distance of their six-year lows. In North America, the loonie has fared no better, straddling its own six-year low, while under attack from last week’s Bank of Canada (BoC) rate cut to +0.5%. For now, dealers and investors are willing to trade as if they do not expect any short-term market reprieve for any of these commodity and interest sensitive currencies." Continue reading →

Continue ReadingAussie, Kiwi And Loonie Under Commodity Currency Attack

Fed rate-hike speculation lifts U.S. dollar to three-month high

"The dollar reached its highest in nearly three months against a basket of currencies on Monday on a rise in U.S. bond yields as traders built bets the Federal Reserve would raise interest rates later this year. A plummet in gold prices to five-year lows under $1,100 an ounce also increased the appeal of the greenback, the world's reserve currency. Last week, U.S. Fed Chair Janet Yellen testified before Congress, reiterating U.S. interest rates will go up later this year if the economy continues to expand. St. Louis Fed chief James Bullard told Fox Business network on Monday there was a higher than 50 percent chance the U.S. central bank will raise rates in September." Continue reading →

Continue ReadingFed rate-hike speculation lifts U.S. dollar to three-month high

Commodity Rout Worsens as Prices Tumble to Lowest Since 2002

"The rout in commodities deepened with prices touching the lowest since 2002 as the prospect of higher U.S. interest rates sent gold tumbling. Raw materials are losing favor with investors as the dollar gains amid signals from Federal Reserve Chair Janet Yellen that the central bank may raise rates this year on the back of an improving U.S. economy. Higher borrowing costs curb the attractiveness of commodities such as gold, which doesn’t pay interest or give returns like assets including bonds and equities. Gold futures sank to the weakest in more than five years while industrial metals, grains, Brent crude and U.S. natural gas also slid as a measure of the dollar climbed to the highest since April 13." Continue reading →

Continue ReadingCommodity Rout Worsens as Prices Tumble to Lowest Since 2002

European Car Sales Jump As ECB Stimulus Takes Effect

"European car-sales growth accelerated to the fastest pace in 5 1/2 years in June. The jump was the biggest since a 16 percent surge in December 2009, when governments in the region offered incentives on trade-ins of older cars to help the industry recover from the global recession. The economy of the 19 countries using the euro is in its longest stretch of growth since the 2008 worldwide credit crunch, while unemployment in the U.K. is at close to a seven-year low. The European Central Bank’s monetary stimulus measures have helped economic revival in most euro-zone countries, partly offsetting the effects of the Greek sovereign-debt crisis." Continue reading →

Continue ReadingEuropean Car Sales Jump As ECB Stimulus Takes Effect

Greek Banks Reopen but Cash Limits Remain and Taxes Soar

"The cash-strapped nation got a short-term loan from European creditors to pay more than 6 billion euros ($6.5 billion) owed to the International Monetary Fund and the European Central Bank. But for most Greeks, already buffeted by six years of recession, Monday was all about rising prices as tax hikes demanded by creditors took effect. There are few parts of the Greek economy left untouched by the steep increase in the sales tax from 13 to 23 percent. strict controls on cash flows, including a ban on check-cashing and payments abroad as well as limits on cash withdrawals, remained in effect. New rules permit the withdrawal of up to 420 euros a week." Continue reading →

Continue ReadingGreek Banks Reopen but Cash Limits Remain and Taxes Soar

Gold price falls to five-year low on US rate rise talk

"The gold price has fallen to its lowest level in more than five years as talk of a US interest rate rise has led investors to sell the precious metal. Gold closed 2.5% lower at $1,104.60 an ounce in London, having earlier fallen below $1,100 an ounce for the first time since March 2010. The gold price is now more than 40% below its August 2011 peak. The stronger US economy has led investors to expect the Federal Reserve to raise interest rates this year. The expectations have led investors to gradually sell gold - a perceived safe haven investment in times of crisis - to invest elsewhere. Other commodities have also fallen, with the price of platinum down 5% - its weakest level since the crisis." Continue reading →

Continue ReadingGold price falls to five-year low on US rate rise talk

China Introduces $483 Billion Stock Support Program

"China has made 2.5 trillion yuan to 3 trillion yuan ($483 billion) of funding available for government agency China Securities Finance Corp. to support the stock market, people familiar with the matter said. The funding is to offer liquidity support to brokers and to purchase stocks and mutual funds. Chinese stocks rose the most in a week as the government gains ground in efforts to stabilize a stock market that plummeted in the past month after a debt-fueled boom. The money was available from the central bank’s relending facility; credit lines with commercial banks; borrowing by CSF in the interbank market; and bonds and short-term notes sold by CSF, the people said." Continue reading →

Continue ReadingChina Introduces $483 Billion Stock Support Program