Housing Blog Watch

2008-08-30T09:03:00.001-07:00

2008-08-30T01:45:00.000-07:00

Three nights of listening to Democrats will either serve as an intense form of amusement or leave you thoroughly depressed. It all depends how seriously you take the message.

But if you really listen to the message, it´s both inescapable and painstakingly familiar – which might be the reason Democrats running for president usually lead in the polls at some point, only to typically fall short in November.

Keep the number to your therapist handy. Prepare for tale after woebegone tale of struggling Americans, worried and apprehensive about the future and desperately seeking a big, benevolent hand to keep them from falling into the abyss.

2008-08-02T10:19:00.003-07:00

2008-08-02T10:19:00.001-07:00

Puckett continued, "Obviously, we are disappointed with the Company's second quarter results. The further deterioration in credit quality we have experienced and the resulting increased allowance for loan losses reflect the slowing of the real estate sectors and its impact on our residential real estate construction and residential acquisition and development loan portfolios, which represent the largest segment of our nonperforming asset portfolio. The general economic climate remains very challenging for all financial institutions; however, since the first quarter we have seen a significant drop of 47% in our accruing past due loans over 30 days. We continue to focus our full efforts on working through problem loan situations and have taken significant steps to navigate the Company through these difficult times. One such step has been the further staffing expansion of our Special Assets Department to monitor and liquidate our nonperforming assets as quickly as possible. Since quarter end, we have liquidated $1,025,000 in other real estate owned ("OREO"), representing 10.3% of our balance at June 30, 2008, and have firm commitments on an additional $1,488,000 scheduled to close within the next three weeks, which represents an additional 15.0% of our OREO at quarter end. Further, we have hired a new Chief Credit Officer with extensive experience in credit administration.

"We remain intently focused on our goal to preserve and build our capital base through our pending rights offering and our recent decision to suspend payment of a cash dividend," Puckett continued. "We are confident, based on the commitment of our Board of Directors, that we will be able to strengthen our balance sheet with an appropriate level of capital so we can weather this current real estate downturn. This offering will allow all current stockholders an opportunity to participate proportionately to their ownership to avoid significant dilution."

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. You may obtain a written prospectus for the offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended, by writing to CapitalSouth Bancorp, 2340 Woodcrest Place, Birmingham, Alabama 35209, Attention Carol W. Marsh, Chief Financial Officer. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Securities may not be sold nor may offers to buy be accepted prior to the effectiveness of a registration statement nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.

Puckett stated, "We have always maintained a conservative approach to banking by careful planning and by responding aggressively to any emerging problems. Management and the Board of Directors are committed to resolving issues in our loan portfolio as quickly as possible. As with most banks, the bulk of our problem loans are real estate secured. Of course we cannot predict the future of the real estate market, but we believe we have provided enough reserves to resolve the problem loans. However, we will continue to monitor market conditions and real estate values and take further action if needed."

2008-08-02T10:17:00.001-07:00

2008-08-02T10:16:00.006-07:00

The Treasury issued a document in January outlining its proposals and has sought the views of banks and lobby groups. Darling is now using the responses that officials to draw up legislation to put before lawmakers, probably later this year.

2008-08-02T10:16:00.005-07:00

Global Insight's Bethune estimated that the previous programs "were equivalent to a reduction in effective short-term borrowing costs of about 25 to 30 basis points, and this latest expansion would bump this effective reduction in borrowing costs -- perhaps by an additional 10 to 15 basis points -- depending on market conditions."

2008-08-02T10:16:00.003-07:00

In a move similar to what Merrill Lynch has done, Lehman Brothers' CEO Dick Fuld is trying to shop tens of billions of dollars in mortgage securities on its balance sheet in order to reduce leverage at the embattled investment bank, The Post has learned.

Lehman is engaged in talks with prospective buyers about offloading some $30 billion in commercial mortgage assets and other hard-to-value securities that have dogged its balance sheet for months and ultimately resulted in the demotion of Chief Financial Officer Erin Callan and President Joseph Gregory.

The sales talks, which are described as preliminary, involve Lehman selling some of its risky assets to a domestic or foreign entity and perhaps providing funding for the sale.

More specifics could not be learned.

At the same time, speculation has emerged that Lazard has been hired to advise Lehman. Exactly what the boutique advisory firm has been hired to do could not be learned.

2008-08-02T10:16:00.001-07:00

The surveys are the latest in a weeklong string of sobering reports about everything from housing to consumer confidence which indicate that the British economy is already in a serious slowdown.

British manufacturing activity declined by the most in almost a decade in July, a leading industry survey reported on Friday.

The Chartered Institute of Purchasing and Supply's index of manufacturing fell from 45.9 in June to 44.3 last month — the lowest rate since December 1998, and worse than economists expected.

Readings lower than 50 signal industry slowdown.

2008-08-02T10:15:00.004-07:00

She said plans were also afoot for the ministry to delay any price increase for key items as a way to temper the cost of living.

Despite inflationary pressure, the official said the ministry still maintained an inflation target for this year in the range of 5% to 5.5% on the assumption that the prices of crude oil would average US$105 per barrel.

Average prices of crude oil for the first seven months were $107.92. Prices as of July 30 stood at $119.64 per barrel.

''The inflation rate is not that worrisome, as the world's oil prices should drop in the remaining months, while there is increasing use of oil substitutes such as LPG (liquefied petroleum gas), NGV (natural gas for vehicles) and gasohol.''

Amara Sriphayak, a senior director of the Bank of Thailand, said July's inflation wasn't too high, given the fact that it rose from a relatively low base in the same period last year.

2008-08-02T10:15:00.003-07:00

2008-08-02T10:15:00.001-07:00

Riverside apartments that were being let for up to £1,500 a week this time last year were now going for about £1,200.

“We have noticed a huge increase in stock in the last three to four months,” said Mr Hyatt. “While inquiries have only increased marginally.”

Rents were coming down fastest on properties presented in less than immaculate condition, or located slightly further from the Tube.

Average UK rents, which had been rising rapidly, have now stabilised just short of £1,000 a month, according to Paragon Mortgages.

Estate agents said tenant demand had not risen in proportion with the increase in rental properties.

2008-06-28T11:23:00.001-07:00

falling house prices

2008-06-28T11:21:00.001-07:00

Wales gloomy over falling house prices as inflation threatensWalesOnline

The figures were released at the same time as the Office for National Statistics confirmed the UK economy grew more slowly than expected in the first three ...

2008-06-28T11:17:00.001-07:00

Foreign Property Investors

2008-06-28T11:16:00.003-07:00

Foreign Property Investors Undeterred By RecessionPR-Inside.com (Pressemitteilung), Austria

He explained that the predicted bursting of the Irish housing property bubble, combined with rising inflation and the international credit crisis, ...

metals

2008-06-28T11:16:00.001-07:00

Metals To Soar By Year EndInside Futures, USA

"This is the worst credit bubble we've ever had in American history… It's going to take a long time to work its way out. You don't cure a bubble in five or ...

Mortgage Crisis

2008-06-28T11:15:00.002-07:00

Mortgage Crisis Hurts Black, Latino Economic ProgressWest Orlando News, USA

So deep is the communal wound, there is cause to despair of the racial wealth gap ever closing in the United States. Not only has the nation’s slumping ...

Mild downturn

2008-06-28T11:15:00.001-07:00

Mild downturn seen for Portland's economyThe Oregonian - OregonLive.com, USA

"There is not a sense of despair or fear of a deep recession in the Portland area, but rather guarded optimism is the prevailing feeling," he wrote. ...