The Nevada area has seven of the top ten zip codes hardest hit by the housing meltdown.
The epicenter of foreclosures shifted to the booming city of Las Vegas at the end of 2007.
Seven of the top 100 worst-hit zip codes last December were in the gaming capital, according to statistics compiled for CNNMoney.com by RealtyTrac, the online marketer of foreclosure properties.
A year ago, old Midwestern industrial cities like Detroit and Cleveland dominated the foreclosure statistics amid factory closings and job losses. Now, otherwise prosperous Sun-Belt cities contain the zip codes worst hit by defaults.
Foreclosures: 100 worst hit zip codes
"What we're seeing is the impact of subprime mortgages coming due," said Rick Sharga, a spokesman for RealtyTrac.
These loans, which were particularly prevalent in Las Vegas, default at much higher rates than traditional, fixed-rate mortgages.
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Wednesday, February 6, 2008
Tuesday, February 5, 2008
Economy Crucial On 'Super Tuesday'
The economy is taking centre stage as millions of Americans prepare to vote in the critical "Super Tuesday" multi-state nomination showdown.
Fears of a recession, a record increase in home repossessions and a contraction of the job market have spurred the leading contenders to focus on helping struggling American families make ends meet.
California is the biggest prize in the Super Tuesday contest: the state delivers 370 delegates for the Democratic candidates and 173 for the Republicans. The hopefuls are trying to gather as many delegates as possible before the national conventions in late summer.
The Republican front-runner appears to be Arizona senator John McCain, who is leading in the "winner-takes-all" states over his nearest competitor, the millionaire Mormon Mitt Romney.
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Fears of a recession, a record increase in home repossessions and a contraction of the job market have spurred the leading contenders to focus on helping struggling American families make ends meet.
California is the biggest prize in the Super Tuesday contest: the state delivers 370 delegates for the Democratic candidates and 173 for the Republicans. The hopefuls are trying to gather as many delegates as possible before the national conventions in late summer.
The Republican front-runner appears to be Arizona senator John McCain, who is leading in the "winner-takes-all" states over his nearest competitor, the millionaire Mormon Mitt Romney.
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GMAC Posts $724 Million Loss as Home Loans Sour
GMAC LLC, the auto and mortgage lending company once owned by General Motors Corp., posted a $724 million loss in the fourth quarter as home buyers fell behind on their mortgage payments.
The net loss compares with a profit of $1 billion a year earlier, the Detroit-based company said in a statement today. GMAC said it's talking to buyers for parts of the Residential Capital mortgage unit, which recorded a $921 million quarterly loss.
GMAC vowed today to make money in 2008 after falling home prices and record U.S. foreclosures led to a $2.3 billion companywide loss for 2007. Provisions for bad mortgages probably will decrease this year, GMAC predicted. The auto finance unit remained profitable, overcoming a 6.1 percent decline in GM's North American auto sales last year.
``While results were weak, we suspect investors will take some encouragement from GMAC's expectation of profitability in 2008,'' said Himanshu Patel, an analyst at JPMorgan Chase & Co.
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The net loss compares with a profit of $1 billion a year earlier, the Detroit-based company said in a statement today. GMAC said it's talking to buyers for parts of the Residential Capital mortgage unit, which recorded a $921 million quarterly loss.
GMAC vowed today to make money in 2008 after falling home prices and record U.S. foreclosures led to a $2.3 billion companywide loss for 2007. Provisions for bad mortgages probably will decrease this year, GMAC predicted. The auto finance unit remained profitable, overcoming a 6.1 percent decline in GM's North American auto sales last year.
``While results were weak, we suspect investors will take some encouragement from GMAC's expectation of profitability in 2008,'' said Himanshu Patel, an analyst at JPMorgan Chase & Co.
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US lawmakers set stage for trade sanctions on China
US lawmakers are setting the stage for legislation slapping China with punitive sanctions over currency and other trade issues after another year of record trade deficit with the Asian giant.
With the United States on the brink of recession and as the campaign heats up for November presidential elections, lobbyists in Congress see greater prospects for such legislation to land on President George W. Bush's table for signature.
"Now is the time to move legislation forward," a group of eight newly elected Democratic senators wrote last week to Senate Democratic Majority Leader Harry Reid, complaining about "a host of difficult trade issues with China that require strong action."
The issues range from currency "manipulation" and "unfair" subsidies by China, to trade law and counterfeit enforcement problems, to imported food and product safety, they said.
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With the United States on the brink of recession and as the campaign heats up for November presidential elections, lobbyists in Congress see greater prospects for such legislation to land on President George W. Bush's table for signature.
"Now is the time to move legislation forward," a group of eight newly elected Democratic senators wrote last week to Senate Democratic Majority Leader Harry Reid, complaining about "a host of difficult trade issues with China that require strong action."
The issues range from currency "manipulation" and "unfair" subsidies by China, to trade law and counterfeit enforcement problems, to imported food and product safety, they said.
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Services data add to US economic gloom
Activity in the US services industry contracted in January for the first time in five years, according to a closely-watched survey, adding to gloominess about the economic outlook as businesses suffered from a combination of weak demand and rising costs.
The Institute for Supply Management’s non-manufacturing business activity index, which records the temperature across vast swathes of the US economy, fell from a seasonally adjusted level of 54.4 per cent in December, signalling an expansion, to 41.9 per cent in January, indicating a contraction.
Most economists had predicted that activity in the services industry would slow, but the ISM index would fall only slightly to 53 per cent.
The sharp contraction in services businesses - from financial services to healthcare and lodging – is likely to raise the odds of a US recession in 2008. It also makes it more likely that the Federal Reserve will continue to cut interest rates at its next meeting in March.
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The Institute for Supply Management’s non-manufacturing business activity index, which records the temperature across vast swathes of the US economy, fell from a seasonally adjusted level of 54.4 per cent in December, signalling an expansion, to 41.9 per cent in January, indicating a contraction.
Most economists had predicted that activity in the services industry would slow, but the ISM index would fall only slightly to 53 per cent.
The sharp contraction in services businesses - from financial services to healthcare and lodging – is likely to raise the odds of a US recession in 2008. It also makes it more likely that the Federal Reserve will continue to cut interest rates at its next meeting in March.
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Monday, February 4, 2008
Tata buys US General Chemical for 1 billion dollars
Tata Chemicals, part of India's leading business conglomerate, the Tata group, said it will acquire US-based General Chemical Industrial Products Inc (GCIP) for over 1 billion dollars in yet another of the Indian company's overseas acquisitions. In a filing before the Bombay Stock Exchange, Tata Chemicals said it had entered into agreements for acquiring GCIP, a leading producer of soda ash for 1,005 million dollars.
It will acquire the firm from Harbinger Capital Partners, which is the US company's majority owner and the deal is conditioned on the receipt of shareowner and other regulatory commendations. General Chemicals has a capacity of 2.5 million tons of natural soda ash every year with manufacturing facilities located in Wyoming. According to local news outlets, the buy-out would position Tata Chemicals as the second-largest producer of soda ash in the world, helping it ramp up its production capacity from 3 million to 5.5 million tons a year.
General Chemical supplies essential raw materials used in the process of manufacturing a range of everyday products, such as glass, soap, powdered detergent, paper, textiles and food items. Established in 1939, Tata Chemicals Limited manufactures inorganic chemicals, fertilizers and food additives. It is part of the 28.8 billion dollar Tata group that has a range of businesses that span the hotel industry, steel, tea, automobiles, fertilizers, energy, telecommunications and information services and a high-end jewellery chain.
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It will acquire the firm from Harbinger Capital Partners, which is the US company's majority owner and the deal is conditioned on the receipt of shareowner and other regulatory commendations. General Chemicals has a capacity of 2.5 million tons of natural soda ash every year with manufacturing facilities located in Wyoming. According to local news outlets, the buy-out would position Tata Chemicals as the second-largest producer of soda ash in the world, helping it ramp up its production capacity from 3 million to 5.5 million tons a year.
General Chemical supplies essential raw materials used in the process of manufacturing a range of everyday products, such as glass, soap, powdered detergent, paper, textiles and food items. Established in 1939, Tata Chemicals Limited manufactures inorganic chemicals, fertilizers and food additives. It is part of the 28.8 billion dollar Tata group that has a range of businesses that span the hotel industry, steel, tea, automobiles, fertilizers, energy, telecommunications and information services and a high-end jewellery chain.
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Metalrax signals turnaround with US acquisition
After a disastrous 2007, Metalrax Group Plc will acquire US company Post Glover LifeLink (PGL), a manufacturer of electrical power systems.
Metalrax, a supplier of specialist steel products, will fund the $6 million (£3.03 million) acquisition through its existing debt facilities. PGL was sold by Halma, a maker of hazard detection products.
Organic growth
Andrew Richardson, chief executive, said: “The acquisition of PGL marks our first step in supplementing Metalrax’s turnaround potential and organic growth prospects.”
Last year, the company suffered from severe operational problems leading to a number of profits warnings and disappointing trading updates.
So far, five senior managers have left and six new managers have joined.
Strategic review
“...The acquisition of PGL takes the Group further into the healthcare, medical, laboratory and educational sectors where we are well placed to grow organically and through further selective acquisitions.”
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Metalrax, a supplier of specialist steel products, will fund the $6 million (£3.03 million) acquisition through its existing debt facilities. PGL was sold by Halma, a maker of hazard detection products.
Organic growth
Andrew Richardson, chief executive, said: “The acquisition of PGL marks our first step in supplementing Metalrax’s turnaround potential and organic growth prospects.”
Last year, the company suffered from severe operational problems leading to a number of profits warnings and disappointing trading updates.
So far, five senior managers have left and six new managers have joined.
Strategic review
“...The acquisition of PGL takes the Group further into the healthcare, medical, laboratory and educational sectors where we are well placed to grow organically and through further selective acquisitions.”
Read Complete Story
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