Failed banks since 2007

Number of banks failed:

2009 year to date end of May: 34
2008: 25
2007: 3

=============================================================
The Columbian Bank and Trust, Topeka, KS August 22, 2008
First Priority Bank, Bradenton, FL August 1, 2008
First Heritage Bank, NA, Newport Beach, CA July 25, 2008
First National Bank of Nevada, Reno, NV July 25, 2008
IndyMac Bank, Pasadena, CA July 11, 2008
First Integrity Bank, NA, Staples, MN May 30, 2008
ANB Financial, NA, Bentonville, AR May 9, 2008
Hume Bank, Hume, MO March 7, 2008
Douglass National Bank, Kansas City, MO January 25, 2008
Miami Valley Bank, Lakeview, OH October 4, 2007
NetBank, Alpharetta, GA September 28, 2007
Metropolitan Savings Bank, Pittsburgh, PA February 2, 2007

*Source: FDIC

Buffett sees economy weak until 2009

By Jonathan Stempel

Warren Buffett said the economy is still in a recession and unlikely to improve before 2009 but that stocks appear better valued than a year ago.

The billionaire investor also said there is a "reasonable chance" shareholders of Fannie Mae (FNM.N) and Freddie Mac (FRE.N) may be wiped out in any government bailout of the mortgage financiers.

Speaking on Friday on CNBC television, Buffett said some housing-related businesses in his Berkshire Hathaway Inc (BRKa.N)(BRKb.N) conglomerate are struggling as the economy works off past excess in making credit available.

"You always find out who's been swimming naked when the tide goes out. We found out that Wall Street has been kind of a nudist beach," said Buffett, who in March was called the world's richest person by Forbes magazine.

He also said Federal Reserve Chairman Ben Bernanke has no "magic wand" to boost an economy facing weak growth prospects, mounting inflation and deteriorating credit. "In my judgment it won't be any better five months from now," he said.

Buffett nevertheless said U.S. stocks are broadly "more attractive" than a year ago. He also said Berkshire has completely unwound a once $21 billion bet against the U.S. dollar, helping boost the greenback in Friday morning trade.

In May, Buffett said Berkshire still had a stake in one currency, the Brazilian real.

The Omaha, Nebraska-based company bought $3.98 billion of stock in other companies in the second quarter, and Buffett said it has added in recent months to its big stake in either American Express Co (AXP.N) or Wells Fargo & Co (WFC.N), but did not say which one.

Shares of both rose in early trading, as did major stock indexes.

Buffett reiterated his support for Barack Obama, the presumptive Democratic nominee, in November's U.S. presidential election, but admires Republican rival John McCain. "President Obama is going to have plenty on his plate in January," he said.

HOUSING EXPOSURE

Since 1965, Buffett has transformed Berkshire from a failing textile company into a $180 billion conglomerate.

Berkshire is best known for insurance holdings such as Geico and sells such products as ice cream and underwear.

But its 76 businesses also include housing-related units Acme bricks, Clayton manufactured homes, Shaw carpeting and the Home Services of America Inc real estate brokerage.

"What we're seeing in business, in our retail businesses, or anything having to do with housing, is even a further slowing down in June and July, both in terms of credit experience where people first got in trouble with house payments, and now credit card payments," Buffett said.

Some economists say a recession occurs when the economy contracts for two straight quarters. Buffett said it occurs when people are doing less well than before.

In morning trading on the New York Stock Exchange, Berkshire Class A shares rose $1,650 to $116,650, and its Class B shares rose $50 to $3,885. American Express shares rose $1.42 to $38.43, Wells Fargo rose 99 cents to $29.43.

The CNBC interview was tied to the national roll-out of the documentary "I.O.U.S.A.," which argues that the nation might face economic disaster if it doesn't curtail mounting debt.

Buffett is interviewed in the movie.

"THE GAME IS OVER"

Fannie and Freddie shares have plummeted as speculation grows about a government bailout of the companies, which own or guarantee almost half of U.S. mortgages. Shares of both have fallen more than 90 percent in the last year.

Buffett called them "too big to fail" and said "the game is over" for them as independent companies. "In a practical sense, as institutions, they don't have any net worth," he said.

Buffett said he has not been approached to assist in any bailout, which he said would be too big to come from the private sector. Though he said "nothing is going to happen" to investors in Fannie's and Freddie's insured mortgages or debt, but "the equity and preferred stock is another question."

Berkshire is trying to reduce the $31.16 billion of cash on its balance sheet, and Buffett said he is being approached by a growing number of "distressed" companies rather than viable takeover candidates.

Buffett said he recently tried to invest $500 million in a Chinese stock he declined to name, but was turned down.

He also said he erred in selling 61 percent of Berkshire's stake in Anheuser-Busch Cos (BUD.N) for $61 to $62 per share, ahead of the U.S. brewer's July agreement to be taken over by Belgium's InBev NV (INTB.BR) for $70 per share.

"It was about valuation and whether I thought the deal would go through," Buffett said. "In retrospect, I was wrong to decide to partially sell."

(Additional reporting by Euan Rocha and Vivianne Rodrigues; Editing by Steve Orlofsky/Jeffrey Benkoe/Daniel Trotta)

ABC News: list of troubled banks

List of 10 banks disclosed:

By BRIAN ROSS, RHONDA SCHWARTZ, and JUSTIN ROOD
July 15, 2008

While the Federal Deposit Insurance Corporation (FDIC) is keeping secret its official list of 90 troubled banks, ABC News has obtained other lists prepared by several research groups and financial analysts.

The lists use versions of the so-called "Texas ratio" which compare a bank's assets and reserves to its non-performing loans, based on financial data made public by the FDIC in March.

Analysts say banks with a ratio over 100 per cent would be the most likely to fail, based on what happened to Texas savings and loans during the 1980's.

Bank	City	State	“Texas-ratio”
Colorado Federal Savings Bank	Greenwood Village	CO	244.8
Eastern Savings Bank, FSB	Hunt Valley	MD	222.7
Integrity Bank	Alpharetta	GA	191.6
Ameribank, Inc.	Welch	WV	153.7
First Priority Bank	Bradenton	FL	122.6
First Security National Bank	Norcross	GA	112.1
Magnet Bank	Salt Lake City	UT	110.4
Security Pacific Bank	Los Angeles	CA	102.8
First National Bank of Brookfield	Brookfield	IL	102.1
The State Bank of Lebo	Lebo	KS	100.6

Source: Research Associates of America

US foreclosure filings surge 55 percent

US foreclosure filings surge 55 percent
Thursday August 14, 12:01 am ET
By Alan Zibel, AP Business Writer Foreclosures in US rose 55 percent in July as housing market continued to sink WASHINGTON (AP) -- The number of homeowners stung by the dramatic decline in the U.S. housing market jumped last month as foreclosure filings grew by more than 50 percent compared with the same month a year ago, according to data released Thursday.

Nationwide, more than 272,000 homes received at least one foreclosure-related notice in July, up 55 percent from about 175,000 in the same month last year and up 8 percent from June, RealtyTrac Inc. said. That means one in every 464 U.S. households received a foreclosure filing last month.

Irvine, Calif.-based RealtyTrac monitors default notices, auction sale notices and bank repossessions. More than 77,000 properties were repossessed by lenders nationwide in July, the company said.

Nevada, California, Florida, Arizona, Ohio, Georgia and Michigan had the highest foreclosure rates. Foreclosure filings increased from a year earlier in all but eight states.

The combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy has left financially strapped homeowners with few options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't refinance into an affordable loan.

As foreclosures soar, banks and mortgage investors are also facing a pileup of foreclosed properties on their books and are cutting prices dramatically.

RealtyTrac noted that it had more than 750,000 foreclosed homes in its database of properties for sale, equal to about 17 percent of the 4.5 million U.S. homes that were up for sale in June.

To speed up the disposition of the 54,000 foreclosed properties it owns, Fannie Mae is opening offices in California and Florida and is considering selling those properties in bulk to investors. "I do not think this is a time to be holding onto (foreclosed properties) hoping for a better day," CEO Daniel Mudd said last week.

It remains to be seen how much the government's intervention will stem the housing crisis. President Bush last month signed sweeping housing legislation that aims to prevent foreclosures by allowing homeowners to swap their mortgages for more affordable loans, but only if their lender agrees to take a loss on the initial loan.

The bill is projected to help about 400,000 households.

The number of foreclosures "could start to stabilize as early as the first quarter of next year if the government program gains any traction," said Rick Sharga, RealtyTrac's vice president for marketing. "That's really the unknowable right now."

Even with government help, nearly 2.8 million U.S. households will either face foreclosure, turn over their homes to their lender or sell the properties for less than their mortgage's value by the end of next year, predicts Moody's Economy.com.

In the RealtyTrac report, the Cape Coral-Fort Myers area in Florida was the metro area with the highest rate of foreclosure, followed by three California cities: Merced, Stockton, and Modesto. Las Vegas ranked fifth.

America's Most Overpriced ZIP Codes - By Matt Woolsey, Forbes.com Aug 1st, 2008

Ten spots where buyers pay a huge premium to own relative to how much it would cost to rent.

In San Jose, Calif., home to Silicon Valley and some of the highest home values in the country, a bumper sticker reads, "Dear God, one more bubble before I die."

Chances are the car's driver lives in Willow Glen, a neighborhood with a small-town feel, Spanish-style single family homes and a main street with sidewalk cafes and locally owned shops. To live there, residents are paying the city's highest prices relative to what they could pay to rent similar properties in the same area. When you compare mortgage payments to the value of a similar home on the rental market, the price to buy is 26.1 times higher, one of the biggest differences in the country.

Willow Glen 95125: 26.1

Dallas 75209: 26.7

San Francisco 94122: 28.5

San Diego 92103: 30

West Hollywood 90038: 30.2

Seattle 98104: 30.3

Boston 02111: 30.5

New York 10013: 36.3

======================

Comment: San Jose 95129 31.0; Palo Alto 31.25; Sammamish 20.1

CA unemployment rate as of May 2008

California as a whole had an unadjusted unemployment rate of 6.5 percent in May, with a 5.2 percent for the nation during the same period.

Bankrate.com Safe & Sound CAEL Rating samples

CAEL rating: 1 (best) to 5 (worst)

-----------------------------------

Charles Schwab Bank: N/A (Charles Schwab Bank is a federally chartered thrift institution and an affiliate of Charles Schwab Corporation, a financial holding company. All bank products and services are offered through Schwab Bank.)

ETrade Bank: 4

ING Bank FSB, Delaware: 3

Washington Mutual Bank FSB, Utah: 1. (Note: S&P cut its credit ratings on the largest U.S. savings and loan one notch to "BBB," the second lowest investment grade, from "BBB-plus.") Link to additional bank profile info: http://www.ibanknet.com/scripts/callreports/getbank.aspx?ibnid=usa_2187071

----------------------------------------------------------------------------------------------

The FDIC insures approximately 8,500 institutions; 79 of them are on the agency's secret list of problem banks as of Dec. 31, 2007.

How safe is your money in the bank?

The FDIC, short for the Federal Deposit Insurance Corporation, fully insures individual accounts up to $100,000 per deposit per bank, and $250,000 for most retirement accounts.

The FDIC does not cover money invested in stocks, bonds, mutual funds, life-insurance policies, annuities or municipal securities.

The FDIC disclosed last month that it was closely watching 90 financial institutions on its "problem bank list." While that number is higher than it has been in the last few years, it is still relatively low, Williams-Dickerson said. In fact, there were 2,165 on the list in 1987. The FDIC does not publish the names of the trouble banks for fear of spurring a bank run.

To find out how safe your bank is, you can check out the Safe & Sound rating on Bankrate.com, which provides a sense of the relative financial strength and stability of commercial banks, savings institutions and credit unions.

*Source: CNN

Good news if your home owner insurance is with Allstate

California insurance regulators have ordered Allstate Insurance Co. to cut rates for homeowners coverage by an average of 28.5 percent, representing a savings of $255 million for policyholders.

Allstate customers would save an average of $242 per policy per year, state Insurance Commissioner Steve Poizner said in a news release Thursday.

Digital TV Converter Box

According to many posts and reviews by various web sites and organizations, so far I found two models are probably the best quality and cost-effective:

. Insignia NS-DXA1
. Zenith DTT900

But wait! Both models currently in store are lacking of one feature: analog signal pass-through. This means any analog signal from your antenna is blocked by the converter box.

Good news is that both are coming out with new model to address this issue. Insignia is releasing NS-DX1-APT model. Zenith is releasing DTT901 model. If you haven't spent your $40 government coupon yet, it may be better waiting until the new models are available in stores.

Federal Unemployment Insurance Extended Benefits

ELIGIBILITY

These extensions can be filed on or after July 6, 2008. Workers potentially eligible for extended benefits:

• Are fully or partially unemployed on or after July 6, 2008,
• Have exhausted their entitlement to a regular UI claim,
• Are not qualified to file a new regular claim,
• Have had a valid claim that began on or after May 7, 2006, AND
• Meet all eligibility criteria.

Forbes: 2007 most affortable U.S. real estate markets

1. Indianapolis, Ind.

Median home price: $112,500
Median household income: $60,383

2. Cleveland, Ohio

Median home price: $122,900
Median household income: $57,472

3. Detroit, Mich.

Median home price: $154,600
Median household income: $63,052

4. Pittsburgh, Pa.

Median home price: $109,000
Median household income: $54,872

5. Cincinnati, Ohio

Median home price: $136,800
Median household income: $60,146

6. St. Louis, Mo.

Median home price: $134,400
Median household income: $59,950

7. Atlanta, Ga.

Median home price: $170,400
Median household income: $63,484

8. Greensboro, N.C.

Median home price: $145,100
Median household income: $50,447

9. Dallas, Texas

Median home price: $145,500
Median household income: $58,736

10. Austin, Texas

Median home price: $176,200
Median household income: $65,739

2006 median annual family income

Arizona: $55K
California: $64K
Florida: $54K
New York: $62K
Texas: $52K
Washington: $63K

Your home's energy use - audit and improve

Energy Auditing Tips

• Check the insulation levels in your attic, exterior and basement walls, ceilings, floors, and crawl spaces. Visit the Consumer's Guide for instructions on checking your insulation levels.
  
  
• Check for holes or cracks around your walls, ceilings, windows, doors, light and plumbing fixtures, switches, and electrical outlets that can leak air into or out of your home.
  
  
• Check for open fireplace dampers.
  
  
• Make sure your appliances and heating and cooling systems are properly maintained. Check your owner's manuals for the recommended maintenance.
  
  
• Study your family's lighting needs and use patterns, paying special attention to high-use areas such as the living room, kitchen, and outside lighting. Look for ways to use lighting controls—like occupancy sensors, dimmers, or timers—to reduce lighting energy use, and replace standard (also called incandescent) light bulbs and fixtures with compact or standard fluorescent lamps.

Formulating Your Plan

After you have identified where your home is losing energy, assign priorities by asking yourself a few important questions:

• How much money do you spend on energy?
  
  
• Where are your greatest energy losses?
  
  
• How long will it take for an investment in energy efficiency to pay for itself in energy cost savings?
  
  
• Do the energy saving measures provide additional benefits that are important to you (for example, increased comfort from installing double-paned, efficient windows)?
  
  
• How long do you plan to own your current home?
  
  
• Can you do the job yourself or will you need to hire a contractor?
  
  
• What is your budget and how much time do you have to spend on maintenance and repair?

Reference: U.S. Department of Energy

Interest rates, excellent article from CNNMoney.com by Jessica Dickler

What the Fed decision means for you

For months mortgage rates have shot up while the Fed has slashed interest rates. What's going to happen now?

By Jessica Dickler, CNNMoney.com staff writer

Last Updated: June 25, 2008: 7:11 PM EDT

NEW YORK (CNNMoney.com) -- If you have a mortgage, carry credit cards and are considering a home equity loan to cope with soaring food and energy prices, you should be paying attention to what the Fed has to say.

On Wednesday, the Federal Reserve held a key short-term interest rate steady, following a series of steady rates cuts - a move that signals to some that rates are about to change direction. And most assume that means consumer lending rates will rise as well.

But the central bank had cut rates seven times since September in an effort to bolster the lagging economy and spur economic growth. And during that time, mortgage rates were increasing. So what gives? And what should consumers expect loan rates to do next?

How it works

The fed funds rate is often thought of as a benchmark to set rates paid by consumers on many types of loans, from mortgages and home equity lines of credit to credit cards and business loans.

Generally, the Fed lowers rates when it is concerned about the economy slowing and raises rates when it is more worried about inflation. In times of lower interest rates, consumers tend to spend more because of the cheap cost of borrowing.

But people incorrectly equate the Federal Reserve's actions with changes in consumer interest rates, cautioned Eric Tyson, author of "Personal Finance for Dummies."

There is not a direct connection, he explained, but an indirect one. "Rates are set by market forces and they have been trending higher in part because of inflationary concerns and, in part, because of Fed expectations." So with inflation fears on the rise and many investors expecting the Fed to raise rates again, mortgage rates have already begun to tick higher.

Rates on 30-year fixed mortgages have surged to a 9-month high on growing concerns about inflation, according to a recent report by mortgage backer Freddie Mac.

And rather than track the fed funds rate, which is the rate banks charge one another for overnight loans, fixed mortgage rates are more closely aligned with the yield on the 10-year treasury note, which offers a long-term look at a fixed investment.

While the lagging economy has bolstered the yield on the benchmark 10-year note, it still remains at a relatively low level, Tyson said.

Unlike fixed-rate mortgages, adjustable-rate mortgages can fluctuate in response to a number of rates, depending on the terms of the loan. Many are pegged to the Libor rate, an international interbank lending rate. Others follow the prime rate, which is generally three percentage points higher than the federal funds rate (presently the prime rate is 5%).

Credit card companies also tend to move the rates on their variable rate credit cards in line with the prime rate of interest.

"Credit cards are generally tied to the prime rate which usually moves in lock step with the Fed's actions," according to Scott Hoyt, senior director of consumer economics at Moody's Economy.com.

Why it matters

Even as the Fed leaves rates unchanged, what they say about the economic picture could also influence consumer interest rates in one direction or another.

"Most likely they will express concern about inflation," said Keith Gumbinger, vice president of HSHAssociates.com, an online publisher of consumer loan information, which could send consumer interest rates higher as people take that as a cue that the Fed intends to start raising rates soon.

So if you are in the market for a house, now could be the time to pull the trigger before rates rise even further. As Tyson points out, yields on 10-year treasury notes are still relatively low, an indication that 30-year mortgages could still be a good deal.

Financing conditions for lines of credit, including home-equity lines, will be tighter than they have been for years. "Keep in mind that it will be difficult to leverage your home's value to greater than 90%," Gumbinger said. So if you do need to borrow against your home equity, now might be a better time than in the near-term future.

And it is likely that credit card issuers will switch back to variable interest rates to ride the future rate hikes, according to Robert McKinley, CEO of credit-card tracker CardWeb.com.

"Consumers should be weighing carefully all card offers they receive in the mail or via the Internet to lock in a good promotional rate or long-term rate, before rates head north again," McKinley advised.

If you carry a balance on your credit card, now is a good time to pay that down as well. But generally speaking, "if you have consumer debt you should get rid of that anyway," Tyson said.

But since no one can predict for certain what the economy will do, and how the Fed will react, it is generally not a wise idea to make critical financial decisions based on expectations about what will happen with interest rates, he added.

Web resources for high MPG cars

http://www.greenercars.org/highlights.htm

http://www.greencar.com/

http://www.cars.com/go/crp/buyingGuides/green/index.jsp

Annual unemployment rate

2007 4.6%
2006 4.6%
2005 5.1%
2004 5.5%
2003 6.0%
2002 5.8%
2001 4.7%
2000 4.0%
1999 4.2%
1998 4.5%
1997 4.9%

Tips to Save Energy Today

Easy low-cost and no-cost ways to save energy.

• Set your thermostat comfortably low in the winter and comfortably high in the summer. Install a programmable thermostat that is compatible with your heating and cooling system.
  
  
• Use compact fluorescent light bulbs.
  
  
• Air dry dishes instead of using your dishwasher's drying cycle.
  
  
• Turn off your computer and monitor when not in use.
  
  
• Plug home electronics, such as TVs and DVD players, into power strips; turn the power strips off when the equipment is not in use (TVs and DVDs in standby mode still use several watts of power).
  
  
• Lower the thermostat on your hot water heater to 120° F.
  
  
• Take short showers instead of baths.
  
  
• Wash only full loads of dishes and clothes.
  
  
• Drive sensibly. Aggressive driving (speeding, rapid acceleration and braking) wastes gasoline.
  
  
• Look for the ENERGY STAR^® label on home appliances and products. ENERGY STAR^® products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.

Source: U.S. Department of Energy

How does inflation affect my family?

Inflation is the rise of price of goods or services. It can also be considered as decrease of the value of currency.

2007 2.8%
2006 3.2%
2005 3.4%
2004 2.7%
2003 2.3%
2002 1.6%
2001 2.8%
2000 3.4%
1999 2.2%
1998 1.6%

In last 20 years from 1988 to 2007, the average inflation rate is 3.1%. Thus, if your savings and investments did not produce 3.1% return, you're losing money to inflation.


Data source: U.S. Department of Labor - ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

Buying foreclosed property

In addition to the usual tips for buying a property,

1. Use web sites such as www.redfin.com, www.realtytrac, www.foreclosure.com.

2. Use a broker who is familiar with REO (Real Estate Owned) properties in the area.

3. Watch out for repair costs. Foreclosed properties could have been neglected and the prior owner was not able to upkeep it.

4. Don't consider only the price, first consider the location. This is especially important because you and your family members are going to live there.