Will Taxpayers Have to Bail Out the FHA?
| By Don Miller Associate Editor Money Morning Government officials testifying before Congress on Thursday staunchly denied that the Federal Housing Administration (FHA) is destined to be the next financial institution to require a taxpayer bailout. But at least one critic testified that the agency is about to burn through its cash reserves in the next 24 to 36 months and will require a federal bailout to survive. Former Fannie Mae (NYSE: FNM) executive Edward J. Pinto predicted at a hearing in front of a House Financial Services panel that the FHA will incur $40 billion in losses, rendering it unable to cover its bad loans without taxpayer help. Read Full Article » Is Tech Leading the Recovery? | By Bob Blandeburgo Associate Editor Money Morning Better-than-expected results from bellwether Intel Corp. (Nasdaq: INTC) are lending credence to the notion that technology – fueled by consumer spending – is leading the recovery. The tech-laden Nasdaq Composite Index is the only major stock index to post a gain over the past five years, rising more than 13% as the Standard & Poor's 500 Index fell more than 3% and the Dow Jones Industrial Average is flat. While the financial crisis has been hard on all three indices, the Nasdaq has gained more than 37% this year compared to the roughly 20% rise on the S&P 500 and a 14% increase for the Dow. Despite the recession, it's consumers – not businesses – that have demonstrated they are willing to spend on technology that has innovative features that make their lives easier. For example, Apple Inc. (Nasdaq: AAPL) sold more than seven times the number of iPhones in its 2009 third quarter than it did in the same period last year. Read Full Article » Canada: China's Personal Shopping Mall | By Peter Krauth Contributing Editor Money Morning In 2007, Aluminum Corp. of China Ltd. (NYSE ADR: ACH) – better known as Chinalco – snapped up Peru Copper Corp. A year later, Jiangxi Copper Co. Ltd., teamed up with China Minmetals Corp., to buy out Northern Peru Copper Corp. Don't let the names of the two copper companies fool you – both targets were Canadian mining ventures. And all three of the suitors hailed from China. Commodity-rich Canada has become China's personal shopping mall. And the wheeling and dealing continues. Read Full Article » |
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