วันศุกร์ที่ 26 ธันวาคม พ.ศ. 2551

Sale of IndyMac Bank Appears Imminent


IndyMac Bank, the California mortgage lender seized by U.S. regulators five months ago, will be sold by the Federal Deposit Insurance Corp. before the end of this year, said a person familiar with the matter.

The bank may be sold intact or split among multiple buyers, according to the person, who declined to be named because discussions aren’t public. Bids were due by Dec. 15. FDIC spokesman David Barr said today an announcement about IndyMac will be made by year-end. He declined to comment on a sale.

Regulators seized IndyMac in July after overdue mortgages left the lender short on cash and triggered a run on deposits. The FDIC said at the time it intended to sell the Pasadena-based bank within 90 days, preferably in one piece. Potential bidders may include U.S. Bancorp and PNC Financial Services Group Inc.

IndyMac, which had $32 billion in assets and $18 billion in deposits when it was seized, at the time ranked as the second-largest failure in FDIC history. The bank crumbled under the weight of huge losses on mortgages gone bad.

วันเสาร์ที่ 20 ธันวาคม พ.ศ. 2551

Habitat International honors Sue Croom


BY MICHELLE GENZ ASSOCIATE EDITOR

Take it from a woman who’s dealt with more than her share of construction workers: There is one big advantage working on Habitat for Humanity’s job sites. “They don’t whistle,” says Sue Croom. “That’s kind of refreshing.”

But fans of Sue Croom will be standing, cheering and maybe even whistling in January when the 61-year-old Orchid resident, who puts in 20 hours or more each week on construction sites, is honored in Atlanta as 2008 National Volunteer of the Year by Habitat for Humanity International.

Croom, whose association with construction was for many years through a now-ended marriage, is being recognized by the global organization for her own work with Habitat’s Women Build program. Her all-woman work force has built nine homes locally, with more on the drawing boards.

“She represents the true Habitat spirit,” says Carrie Rossman, assistant operations managers in charge of volunteers, who nominated Croom for the award. “Her energy and enthusiasm is almost contagious. She makes volunteers – especially women volunteers – feel really comfortable in stepping up to the plate and saying ‘Yes, I’ll volunteer.’ ”

While Croom was the first nominee from the local Habitat chapter, Rossman says she wasn’t surprised that Croom won — though Croom herself was. “She was shocked. She’s very humble about the work that she does. She should be proud.”

Standing at a job site near Olso Road, what Croom seems most proud of is her ability to gather good intentions around her to turn a vacant lot into somebody’s home. She’s also proud of having found a passion in her life.

“Framing is the thing I love most,” says Croom, who had no hands-on construction experience before she started with Habitat. She also loves roofing, can put up fascia and soffit, and can set windows, and operate a table saw and a circular saw.

While she still gets regular manicures and wears pale peach lipstick on the job, the Harley-riding Croom is entirely comfortable with terms like jacks, cripples and studs – and knows how to wield them in pun-strewn descriptions of the male crews.

“I can never figure out why men come out here and want to be bossy. But we’ve got them pretty well trained,” she says. “We don’t put men with our group unless they are of like mind and like heart. You don’t want to be treated poorly.”

“It used to be you drew the short straw if you had to supervise the Women Build,” she says. “But over the years, we’ve developed into a fairly skilled group of people. The Women Build gives a new person opportunities to come into a group and not feel intimidated by the men. It makes them comfortable about learning new skills.”


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Croom credits her community service with Habitat with restoring her sanity. Raised in Sarasota, Croom had married local builder David Croom at 21. Moving to Vero in 1976, she raised two children, and worked in the office of her husband’s construction firm. Thirty-one years later, her husband suddenly left her. He remarried the next year. They have not spoken since, she says.

Devastated, Sue Croom fell into a deep depression. “For five years, I didn’t know whether I was coming or going.”

It was a friendship with a neighbor in Orchid Island that eventually drew her out of her sense of worthlessness. That friend, Jo Tripp, was recently widowed, and had not known Croom’s ex. That gave Croom a sense of making a fresh start, having found a kindred spirit in figuring out how to have fun as a woman alone.

One day, Tripp invited her to the groundbreaking of Grace Pines, Habitat’s community of 26 homes in Gifford. Orchid Island was sponsoring one of the houses about to be built.

Through that first visit, Croom began her association with Habitat. “Through helping others, I finally got out of my box,” she says. “There’s a whole lot worse stuff out there than me and my problems.”

“A verse comes to mind when I think of Sue,” says Cyndy Hazelton, a Women Build crew leader who lost her husband to cancer a year ago. She has known Sue Croom since their children were small, and they both served on the parent association. After a few years without contact, they reconnected by chance at church the morning after Sue’s husband moved out.

“ ‘Man’s heart plans his way, but the Lord directs his step.’ I think that’s exactly what happens in Sue’s life,” Hazelton said. “The opportunities have come her way and she’s participated in them, and that’s how she got where she is today.”


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Croom’s first role at Habitat was as a family support partner for a prospective homeowner. Habitat’s homeownership process is rigorous, involving a dozen classes in budgeting, legal matters, and home maintenance. “It’s a huge amount of preparation. These are the working poor. To participate in this program is a lot of extra stress on them.”

Habitat tailors mortgage payments to a family’s income; a typical payment ends up at around $450 a month, which includes property taxes and insurance.

“It’s eye-opening when you look at the amount of money these people make,” Croom says. “It’s nothing, yet they manage to live off of it. It’s humbling to work with these people, after working with a firm that built multi-million dollar homes.”

Once Croom had moved her new homeowner into the Habitat-built home, Croom looked for another way to participate. Habitat had just started work on Grace Grove, another community in Gifford. Croom’s church was involved in what Habitat calls a “Circle of Faith build,” and one cool clear day in May 2004, Croom drove over to see how she could help.

Plenty of workers had already shown up there, so they directed her to another project down the road.

That house needed someone to work on the roof. Croom didn’t hesitate. She clambered up a ladder, where longtime volunteer Dave Dearing was working with a group of girls from the juvenile detention center who were performing community service. The girls were sheathing the roof with plywood.

“I had never hammered a nail in my life,” says Croom. “One of the girls showed me how to angle the nail to catch the truss and go through the plywood.”

The sight of tiny Sue Croom on the roof caught Habitat executive director Andy Bowler’s eye.

“He said, ‘Susan what are you doing up on there?’ I said, ‘Well, I don’t know but I’m having a blast.’ ”

By the end of the work session, she had blisters covering her hands. Exhilarated from the effort, she had forgotten to wear gloves.

Today she knows better: she always wears gloves, and they are pink suede. She bought them for all her crew, as well as pink tool belts: they fully embrace their feminine side. On the open tailgate of a grey pickup truck, there is a welcoming display of goodie baskets filled with hand lotion, peppermints, bottled water, sunscreen, nail files, and this week, a bottle of Tabu cologne.

It also includes toilet paper and seat covers; the Portolet is not the favorite room on the site.


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The team is gathered on a chilly Saturday morning – they start at 7:30 am. Sally Slate-Hyatt is on the roof in a brightwhite sweatshirt, with “Las Vegas” written in rhinestones on the back. She is nailing shingles on plywood.

Sue Croom, whose nametag reads “Queen of Women Build,” has vaulted over the side of a dumpster to retrieve pieces of cardboard big enough to wrap around window screens, a trick they developed to keep the screens from getting damaged until the new owners set up housekeeping. Inside the house, concrete floors are swept of debris; exposed block is spray painted with one-word instructions.

It was Andy Bowler who convinced Sue Croom to start a Women Build group; they exist all over the country. In ten years, 1,400 homes have been built by all women crews.

It was not without its challenges. Soon after the rooftop rendezvous with Bowler, Croom started putting together to-do lists and working on publicity to recruit volunteers, looking forward to a January start date for her Women Build group’s first house.

But in August 2004, Croom discovered a tumor in her kidney the size of a tennis ball. Two weeks later, she underwent surgery to have the entire kidney removed. The tumor was benign, and the recovery period was relatively brief, a matter of weeks.

Croom is convinced that the tumor was her body’s reaction to the years of stress due to the divorce. “Habitat saved my life,” she says, by giving her a new focus and an optimistic outlook.

But another calamity was happening at the same time – the double hurricanes that struck Vero Beach in 2004 — and that recovery took much longer.

Croom hesitated, but in the end persevered amidst the chaos. She credits two grant writers at Habitat for showing her the bigger picture: the future. “Carrie Rossman and Kelly Brown became my best friends,” she says. “They opened up doors for me and encouraged me to go on.”

On this chilly Saturday, two women are driving screws into a window frame, inserting a black plastic shim under a twoby- four to block the screw from going too far into the frame. Janet and Kristy Zabrosky are mother and daughter, from Pointe West. They showed up after reading an article on Women Build and thinking it sounded like fun.

They smirk after explaining what they’re doing to a newcomer: it’s their first day. “We had no idea how to do this until about an hour ago.”

Youth is not a requisite to be part of Women Build: Croom has a 76-year-old working on a Fellsmere project. Another woman, Barbara Mandell, is 84; she sorts nails by the paint-bucketful, part of Habitat’s Green team that recycles materials thus saving dump fees and generating revenues.

The Green team was born of a thrifty homemaker’s ‘Ah-Ha!’ moment when Marcia Zimmer of the Moorings, working on a Women Build crew, asked, “Do we recycle these nails?”


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One nail will not go into any bucket. Croom, who is deeply religious, believes it was bent into a “J” as a sign from God. Fired from a nail gun, it ricocheted off something on the worksite and up into the eye of a crew supervisor the Tuesday before Thanksgiving. “It was a cold day, and you’re supposed to wear safety glasses, but his were steaming up. So he slid them up on his head.”

That’s when the errant nail struck him. As the eye began to bleed and swell, the Habitat crew surrounded him and prayed, though he himself was not “a believer,” says Croom. He was rushed to the emergency room where he was told he would lose his eye.

“An ambulance took him to Leesburg to a specialist. The doctor took the patch off and said, ‘You’re going to be fine. Your sight’s going to come back.’ We feel that that was a miracle. The fact that they had prayed with him and anointed him brought his sight back.”

One of Croom’s crew put the bent nail into a frame with the inscription: “I was blind and now I see.”

“We waiting for the second part of the miracle,” says Croom, who hopes the incident will make a convert out of the man.

The Habitat crews pray before every workday; when the ribbon is cut on the new house, the group gives a Bible to the new homeowner, along with a hammer with a cross on one side, though the group helps people of all religions, and invites all to participate in its work.

Habitat was founded in 1976 by a millionaire couple, Linda and Millar Fuller, who divested of their fortune to begin a life of what they regarded as Christian service. In 1984, former president Jimmy Carter and his wife Rosalynn joined the effort, greatly increasing public awareness of the organization.

The Carters’ efforts took Habitat international; homes have been built in more than a hundred countries.

Indian River County’s chapter is paired with Romania. In 2006, Sue Croom and Carrie Rossman were part of a team of 10 who traveled abroad and stayed with a local family while building a house in a small village.

“It was June but it was cold, and the host would come into our rooms to build us a fire since there was no heat in the house. It was quite an experience,” says Rossman.

It was on the job site when someone was painting a soffit red that Croom’s passion for Dracula came to the fore. She and Rossman conspired to make the most of a Romanian moment. “We turned the scene into a Dracula impalement.”

Another beloved hard-working and enthusiastic friend, Madeleine Kerns, is now the Saturday crew leader on Women Build. But she is working more and more at the Home Center, helping redesign the aisles for better merchandising, and enjoying the spectacular success of sales there – it is Habitat’s second highest grossing center in the country.

Sue Croom laments that the retail store may eventually steal Kerns from her crew, but some things are beyond her control.

“The word is, Madeleine is growing very attached to the flush toilets there,” says Croom, frowning. “We can’t compete with indoor plumbing.”

วันศุกร์ที่ 12 ธันวาคม พ.ศ. 2551

Deep recession could force more foreclosures: BoC


CTV.ca News Staff

If the global recession deepens, a growing number of Canadian households could be driven into foreclosure by crushing consumer and mortgage debt, the Bank of Canada warned Thursday.

A faltering economy - coupled with rigid credit markets and lower incomes - could create a perfect storm that would swamp vulnerable households right across the country, the central bank said.

"With household balance sheets under pressure from weak equity markets, softening house prices, slowing income growth, and record-high debt-to-income ratios, a severe economic downturn could result in a substantial increase in default rates on household debt," writes the bank in its December financial review.

But Tom Velk, an economics expert at McGill University, downplayed the report and said it casts far too much doom and gloom.

"It's too easy to get rolled (in) with the enthusiasm for pessimism," he told CTV Newsnet Thursday. "Less than 1 per cent of Canadians are in real trouble with their mortgages."

Even if the recession deepens, Velk estimated that the number of Canadians who could experience a foreclosure would top out at about three per cent.

In short, Velk said the economy is simply going through a cyclical recession, and that too much worry among the public could makes things worse.

"It's not right, and it's not good and it just gets everybody ... in the mood where they don't want to make sensible investments," he said.


According to Velk, Canadians should think about investing in the stock market now, given the rock-bottom prices.


"The Warren Buffetts of the world are buying now," he said, referring to the investment guru and multi-billionaire.

Patti Croft, an economist with RBC Global Asset Management, said that while Canada likely won't have a rash of home foreclosures like in the U.S., Canadians are currently carrying record-high debt loads.

Croft told CTV Newsnet Thursday that if the recession gets worse, it could get harder to manage that debt.

"There's potentially less assets to service those debts ... and that could cause people to default, or could cause home foreclosures as well," she said.

However, Croft stressed that debt levels in Canada are much lower than those in the U.S. and United Kingdom.

Things will get better: report

The Bank of Canada report suggests the "most likely" outcome is that global financial markets, and Canadian credit conditions, will gradually improve "as the various extraordinary measures aimed at resolving the crisis take hold."

There were few hard-and-fast predictions in the statement about how Canada will be affected and how long it will take for consumer confidence to rebound. But the statement was clear that Canada has been affected by the global slowdown and will continue to feel pressure.

"The Canadian financial system has proved relatively resilient throughout the crisis, owing to lower leverage and more conservative lending practices, but it has not been immune to spillover effects," the statement said.

"In particular, strains in Canadian wholesale funding markets have been significant in recent months, and this has impeded the normal functioning of the financial system."

The report warns it's still possible that the situation here could take a turn for the worse, driven by panic linked to household debt.

"Household indebtedness could act as a channel of contagion spreading losses through the Canadian financial system and causing a further tightening of credit conditions," it said.

"The impact on the balance sheets of financial institutions would, however, be substantially mitigated by mortgage insurance."





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Comments are now closed for this story

Future kinda scary in Ontario
So we spend miliions, billions to continuously bail out the auto industry, but hard working Canadians who pay taxes and are starting to feel the pinch could end up lossing their homes putting themselves and their children on the streets is okay?
How about we funnel some of the tax money we pay to helping out normal people. Or if the case of we are all going to be losing our homes threat is there are we going to be building more homeless shelters. I can only hope that the stories I heard from my grandfather about the depression is not history reapeating itself. I don't think raising my kids on the streets is a future I am looking forward to!!!
Guess I should start saving my recyclables for making my makeshift home on younge street!!

วันอาทิตย์ที่ 7 ธันวาคม พ.ศ. 2551

Business in Wonderland


The new, topsy-turvy world of finance has turned the business world upside down – and the old, established rules no longer apply

FOR 37 years Val Padden worked at the brickworks in Accrington, Lancashire. He is proud of the plant’s history — the works has made bricks for 120 years, including the “Nori” high-strength blocks built into the foundations of the Empire State Building and Blackpool Tower. Local legend has it that the Nori brand originated when its intended name – Iron – was painted upside down on the factory chimney.

Last month the credit crunch broke Accrington’s brickmaking tradition. Hanson, the building-materials company that owns the plant, said the housing downturn meant it would be mothballed and 50 staff made redundant.

“Nobody thought it would shut,” said Padden. “We thought there would be some lay-offs and fewer hours, but we didn’t predict it would close down altogether. I still haven’t emptied my locker – it just doesn’t feel real.”

Several other brickworks, including those at Steerforth near Barnsley in Yorkshire and Caernarvon, North Wales, have shut in recent weeks. Just over a year ago such closures would have been unthinkable. The government had set a target of 3m new houses to be built by 2020, and the housing boom was in full swing. Now, due to the banking crisis and recession, housing is in retreat. Last year the UK made 2.4 billion bricks. This year it will be 1.9 billion, the lowest for 60 years.

The wave of brickwork closures is an example of how big business, like Alice when she followed the White Rabbit into Wonderland, finds itself in a topsy-turvy world. Recession has swept down like an avalanche. Its speed and depth, combined with the disruption of banking and other financial markets, has pushed firms and governments into actions that only a few months ago would have been thought impractical, or downright crazy.

Radical measures are now the norm. Take two examples from last week: the Bank of England cut interest rates to 2%, the lowest level since 1951, in a desperate attempt to stimulate the economy. The move made a mockery of the desire to drive out inflation that had obsessed the Bank’s rate-setters only six months ago. And the car-market slump forced Honda to quit Formula One motor racing, ending the Japanese car-maker’s 40-year association with the sport and a competition it recently vowed to spend any amount of money to win.

In some cases, such as the reshaping of the car-manufacturing and financial-services industries, the world is being turned upside down with the help – or at the behest – of governments. In other sectors, including commercial airlines and property, the scramble for survival has made businesses ditch long-held assumptions about their future.

“The unthinkable has become the inevitable,” said Tim Linacre, chief executive of stockbroker Panmure Gordon, which advises mid-sized public companies on their relations with investors. Robert Silver, senior partner at US law firm Boies, Schiller & Flexner and one of America’s top corporate lawyers, said there was no precedent for the shifts now taking place. “I’ve never seen anything like this. Every day is extraordinary,” he said.

The difficulty now is predicting what surreal twist the crisis has in store. Senior executives and City advisers fear the rupture in normal business activities – in particular companies’ refinancing of existing loans – will lead to a “bolt from the blue” – the collapse of a big UK group for no obvious reason.

“There is now a real risk that fundamentally viable and financially sound companies could fail because of a lack of liquidity,” said Peter Marshall, managing director at Houlihan Lokey, an investment bank that specialises in corporate restructuring.

This risk of large corporate defaults is prompting the government and officials to think about even more drastic actions. Gordon Brown and the Bank of England are contemplating whether interest-rate cuts go far enough, or should be augmented with direct economic intervention to reflate the economy.

Lord Mandelson, the business secretary, is drawing up a list of industries threatened by the crisis that could receive direct government support – a return to policies not seen since the 1970s. THE descent into Wonderland began with banks. The collapse in trust and drying-up of credit markets over the past year has threatened the survival of the international banking system. The result has been a spectacular shake-out of the big financial institutions, all done with the connivance of governments.

Five years ago Lloyds TSB was blocked from acquiring Abbey National on competition grounds. A merged Lloyds and Abbey would have had too large a market share, it was decreed.

Yet when Lloyds revealed plans to take over HBOS two months ago, the government had changed its tune. Together the banks will control almost one third of Britain’s mortgage market, but competition concerns were waived in the interests of securing HBOS’s future. On Wall Street, the crisis deepened so swiftly that the institutions seen as saviours had to be bailed out themselves. At the end of September Citigroup was asked to rescue struggling US retail banking giant Wachovia. A rival deal with Wells Fargo was stitched together soon after. Last month Citigroup itself received a $326 billion (£220 billion) government bail-out in a remarkable case of the hunter becoming the hunted.

Lehman Brothers had been thought to be one of those firms that was “too big to fail”.

It was a false assumption. While Washington had been willing to bail out the mortgage agencies Freddie Mac and Fannie Mae, had stood behind the rescue of Bear Stearns and took insurance giant AIG on to its books, Lehman was hung out to dry.

“Until the day they put me in the ground, I will wonder,” Lehman chief executive Dick Fuld told a congressional committee when asked why he thought the authorities had been unwilling to act. “I wake up every single night thinking what could I have done differently?”

Lehman’s collapse has in turn caused an unexpected crisis in the hedge-fund industry. The dozens of hedge funds that dealt with Lehman found their assets and trading books frozen, a gridlock that has still yet to be fully resolved. “The Lehman default has resulted in a state of chaos for fund managers – operationally, legally and from a risk perspective,” said Richard Saunders, chief executive of the Investment Management Association.

In other industries the scramble for survival is running ahead of government intervention. British Airways’ planned merger with Qantas, which stunned the City when it was first leaked, then officially confirmed last week, is a prime example.

Airlines have proved stubbornly resistant to the pan-national mergers that have swept through other global industries. They are largely protected from takeover by the 70-year-old system that governs international aviation and all but forbids foreign ownership and control of national flag carriers.

Reform has been glacial. Europe removed most of the constraints between its member states a decade ago, and last year agreed with America an “open skies” deal which dealt with some of the traffic-right restrictions but none of the ownership curbs.

The BA-Qantas deal could drag protectionist governments kicking and screaming into a liberalised brave new world. The pair plan to sidestep restrictions by creating a dual-listed company, a construct that allows the airlines to merge without losing their individual corporate identities. If a subsequent merger with Iberia and tie-up with American Airlines goes ahead, BA will have driven a coach and horses through what were until now regarded as inviolate rules that prevented such deals.

“This is the kind of transaction that does cause rules to change. It creates a positive need, and commercial imperative, to change rules rather than just a theoretical desire to change them,” Mike Whittaker, head of regulatory affairs at United Airlines, said.

It is the speed of the recession that has bowled over some industries, including Padden’s beloved brickworks. The UK housing market has gone from boom to bust in a little over a year, meaning that demand for bricks, cement blocks and other building materials has evaporated.

In April last year the shares of Taylor Wimpey, the UK’s biggest housing group, stood at 517p, giving it a stock-market value of about £4.5 billion. Last week the shares closed at 9.9p, valuing the group at £104.5m. The shares of its rivals have also taken a pummelling.

The number of new houses built during the next 12 months is forecast to fall as low as between 50,000 and 60,000. The lower number would represent a quarter of the 209,606 homes built last year and a fraction of the 404,356 houses built in 1967 – the peak year for housebuilding. Not since 1920, when only 2 9 , 7 0 0 homes were built, has output been so low.

IT TAKES about nine hours to drive the 520 miles between Dearborn, Michigan, and Washington DC. The road trip offered the bosses of the big three car firms plenty of time to work on their begging strategies.

The decision by the bosses of Chrysler, Ford and GM to drive to Washington this week in lean, green hybrid cars was an act of penance. Not so long ago hybrid was a dirty word in Detroit as the trio concentrated on selling gas-guzzling behemoths. High petrol prices and scared, credit-deprived consumers have brought their industry to the edge of destruction, threatening millions of jobs.

Two weeks previously, the car bosses had been sent packing by politicians after flying down to Washington in private jets. Now they were back, begging for $34 billion.

“We’re here today because we made mistakes,” said GM’s chief, Richard Wagoner.

Few doubt that the collapse of one of the three will have a profound impact on the US economy, but polls last week showed that the US public, as well as politicians, are reluctant to simply hand over more money to the car firms.

So, once unthinkable solutions are now being considered – such as a forced merger of GM with Chrysler. Silver, of Boies, Schiller & Flexner, said the government’s primary concern was to prevent more shocks to the system.

“It’s always a question of what risks do you want to take. Do you want to take a risk that you are going to have too much consolidation? Or do you want to take the risk that you are going to have a business failure that you could have prevented? Given everything that is happening now, and all the fragility, I think governments that would normally go in the first direction will now go in the second.”

FOR corporate Britain, the scrabble for funding will dictate the itinerary on the next stage of its trip through Wonderland. The banking crisis means that some groups will struggle to refinance loans that are falling due, and certainly not at the interest rates they enjoyed when the loans were first taken out.

Bankers say the funding crisis has been exacerbated by the recent collapse in equity markets. Deficits in defined-benefit pension schemes have soared as a result. “If pension trustees then force firms to take aggressive steps to reduce the pension deficit at the same time as the credit crisis, the results could be disastrous,” said Houlihan Lokey’s Marshall.

If loans are unavailable, companies will have to turn to their shareholders for cash injections. Corporate advisers expect a rash of rights issues – where companies give their existing shareholders the option to subscribe for new shares, usually at a substantial discount to the existing price – early next year.

“You could see a number of companies look to launch rights issues rather than get into tricky negotiations with their banks further down the line. The best companies will be looking to do this sooner rather than later to make sure they don’t end up at the back of the queue,” said Panmure Gordon’s Linacre.

Not all rights issues will succeed, however. There has been a polar swing in investor sentiment. Two years ago, when debt was cheap and the bull market was in full swing, no corporate story was too good to be true. Now, no tale of potential disaster, forced merger or corporate collapse is too outlandish to be believed. “[Two years ago] the world was so different as to be almost beyond remembering. It was ruled by greed, optimism and credulity. In short, it was the opposite of the last few weeks . . . [now] no scenario is too negative to be credible, and any scenario incorporating an element of optimism is dismissed as Pollyannaish,” Howard Marks, chairman of American investment firm Oak-tree Capital Management, told his clients in a recent letter.

For those rejected by their shareholders, there is another potential source of funds. Emboldened by government’s willingness to bail out banks, several large industrial groups have made a plea for state subsidy, the most high-profile of which has been Jaguar Land Rover, which is asking for around £1 billion.

Mandelson is now drawing up his list, but this weekend told The Sunday Times that he would take a tough line, with no open cheque book for British business.

For the moment, it’s hard to see an obvious way out of Wonderland.

วันจันทร์ที่ 1 ธันวาคม พ.ศ. 2551

Cottage offers timeless appeal


THE Government’s pre budget report has done nothing to provide any help to the housing market, according to local agents.

The new measures, announced on Tuesday by Chancellor, Alistair Darling, covered tax changes — the personal tax allowance increase by ฃ600 announced in May, is to be permanent, with a further increase of ฃ130, a temporary reduction in VAT to 15 per cent, until the end of next year — and other measures, including an increase in child benefit brought forward to January and a ฃ60 payment to pensioners brought forward to January.

Along with the ‘benefits’ go changes to National Insurance contributions — to increase from April 2011 by 0.5 per cent and the restriction of income tax personal allowances for those earning over ฃ100,000 from April 2010, amongst other measures, none of which, says Richard Beville of Beville in Sonning Common, will help the housing market recovery. “The measures announced would not appear to provide any stimulus to the housing market: a revision of the stamp duty thresholds would reduce the cost of moving and help kick start the property market,” he said.

Rob Bruce, research manager for Hamptons International commented: “Hamptons International welcomes the ฃ1.8 billion package of housing measures to be implemented following the Chancellor’s pre-Budget report. However we question whether they will go far enough to reinvigorate consumer confidence during such challenging economic times.

“With repossessions up 41 per cent during the first half of this year when compared to the previous six months, consumers have also found their properties falling in value by 16 per cent during the year which has left them with substantially lower equity and therefore lower spending power.

“The changes in the pre-budget report also do not directly address concerns around the majority of household costs which is likely to put off many shoppers who will stay out of stores in favour of maintaining a roof over their head. Historically high costs of borrowing and the potential for the rate of unemployment to climb clear of three per cent also means that spending — both personal, and for business expansion, will remain capped.

“We look forward to clearer guidance on the ‘detailed scheme’ to improve the supply of mortgages before the Budget next spring. The immediate effect of today’s changes will also do little to ease the burden on mortgage borrowers and will not assuage first-time buyers’ fears that capital values will continue on the recent boom-and-bust rollercoaster.”





COTTAGES are timeless: they speak to us of the past, with their rooms designed for cosy living, simpler needs for furnishings and windows whose size is determined by window taxes or the cost of glass. In the present they represent one of the most popular, sought-after types of property, as they remain family homes, set in idyllic rural and semi rural locations, and provide versatile, character homes for the future.

Woodleys Cottage, in the heart of the village of Brightwell-cum-Sotwell, just three miles from Wallingford, is a pretty home in a quiet lane. The village itself has a local pub, a post office — held in the hall twice weekly — and a thriving village community. Wallingford offers a large Waitrose, a variety of shops and a cinema/theatre. Communications in the area are excellent, with access to the M4 at junction 12, and Didcot main line railway station just four miles away. There are good schools in the area, too, including Moulsford Preparatory, Radley College and The Oratory.

Woodleys Cottage has a thatched roof, which has recently been replaced: the cottage is believed to be the oldest in the village.

On the ground floor, the front door opens directly into the dining room, with a large fireplace to one side, windows to either side and an opening into the sitting room. Two small windows look to the front of the property, and there is an inglenook fireplace to one side. Looking to the rear garden, there are windows, and a single door opens onto the gardens.

A door from the sitting room leads to the kitchen/breakfast room, which has been newly fitted. There is a walk-in larder, with a window looking to the side of the house, and a shower room. Continued on back page

Stairs lead from the sitting room to the first floor; the master bedroom lies to one side, with a large window looking to the side of the house and built in cupboards to the other side. The second bedroom, across the hallway, has windows to two side, and the third bedroom/study/dressing room, which has been fitted with a range of built-in cupboards, is reached through the second bedroom.

The family bathroom has a power shower, wc and wash hand basin, and windows looking to the garden.

Outside, the garden has a circular lawn, edged with well-stocked flower beds. To the front, a cottage garden bounds the property, and, in the rear garden, there is a summer house and patio storage sheds. There is also off street parking.

For more information, call Savills in Henley on (01491) 843001. The guide price for Woodleys is ฃ560,000.