Well, according to a report today in the Wall Street Journal, GGP's deadline to renegotiate a $900 million loan on two luxury malls in Las Vegas came and went Thursday with no resolution. The mall mogul is still in talks with its lenders to negotiate a new deal -- but it's now haggling outside the confines of its forbearance agreement, which means those lenders, led by Deutsche Bank (NYSE: DB), can demand payment at any time.

Continue reading Is General Growth Properties bankrupt yet?

Is General Growth Properties bankrupt yet? originally appeared on BloggingStocks on Fri, 13 Feb 2009 13:40:00 EST. Please see our terms for use of feeds.

Q: What If I need to borrow from my 401(k) plan in an emergency?

A: The maximum you can borrow from your 401(k) plan is 50% of the amount vested, up to a maximum of $50,000 in any rolling 12 month period.

Your employer may place additional restrictions on your ability to borrow from your 401(k).

Whether or not you are permitted to take a 401(k) loan, it's generally a bad idea.

During the repayment period, there is less money in your account. If the market increases in value, your returns will be diminished.

If you leave your job, you will have to pay back the full amount of the loan. If you cannot repay the loan as required by IRS guidelines, then the loan will be treated as taxable income and a 10% penalty will be accessed.

If you have no other options, you should consider a loan from your 401(k). But it should be a last resort.

Dan Solin is the author of The Smartest Investment Book You'll Ever Read (Perigee Books 2006) and The Smartest 401(k) Book You'll Ever Read (Perigee Books, June 24, 2008)

Tough Retirement Questions: What If I need to borrow from my 401(k) plan in an emergency? originally appeared on BloggingStocks on Wed, 16 Jul 2008 19:20:00 EST. Please see our terms for use of feeds.

MarketWatch has published a story that details the conundrum new first-time home buyers are facing in today's market. In "First-time home buyers struggle to find down-payment money," staff writer Amy Hoak tells about a middle-class family that bought a house a couple of years ago without having to put any money down. This same family, admittedly, would have trouble finding a loan today to finance their purchase.

Typically, when mortgage lending is restricted, it affects first-time owners the most because they frequently lack the funds for a down payment. According to the MarketWatch article, 45% of first-time home buyers opted for 100% financing between July 2006 and June 2007.

Experts are predicting that lenders are going to require more and more down before they're willing to lend to home buyers. To counteract stricter lending practices, check out loans backed by the Federal Housing Administration (FHA). According to MarketWatch, statistics confirm the recent popularity of these loans: The FHA backed 17,773 purchase loans in December 2006; that increased to 24,817 purchase loans in December 2007.

Down payments for these types of loans are around 3% and there are even down-payment-assistance programs to help to this end.

With market prices catering, buying a home in certain localities may prove a good move.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

Prices may be down but try getting a mortgage originally appeared on BloggingStocks on Sun, 09 Mar 2008 17:10:00 EST. Please see our terms for use of feeds.

Prosper.com puts private lenders in touch with borrowers originally appeared on BloggingStocks on Mon, 11 Feb 2008 17:58:00 EST. Please see our terms for use of feeds.

Continue reading Inflation or recession? Give us your perspective

Inflation or recession? Give us your perspective originally appeared on BloggingStocks on Mon, 11 Feb 2008 15:03:00 EST. Please see our terms for use of feeds.

The Chinese central government is putting brakes on almost all bank lending to both individuals and commercial enterprises. The freeze will last at least until the end of this year. According to The Wall Street Journal "a China Banking Regulatory Commission official here confirmed that local and Chinese subsidiaries of foreign banks have been asked to ensure that loans at the end of the year don't exceed the total outstanding on Oct. 31."

While the move may help bring down inflation, it could also cause a nosedive in China's consumer spending and stock markets. It is broadly assumed that much of the money going into stocks traded on the Shanghai exchange comes from borrowed funds. Since the index for those shares has more than doubled, the borrowing seemed wise, at least for now.

Although much of the goods and services production in China goes overseas in the form of exports, the country's new middle class has also created a vast pool of consumers.

The government is taking a dangerous gamble, but it may be necessary. An overheated economy could lead to hyper-inflation as more money chases fewer products, homes and company stock shares. If the stop is too abrupt, however, the Chinese economy could fall over itself and drop into a recession. Cutting off lending completely is too large a risk to China's GDP growth.

Douglas A. McIntyre is an editor at 247wallst.com.

China's plan to cut lending threatens stock market growth originally appeared on BloggingStocks on Mon, 19 Nov 2007 09:20:00 EST. Please see our terms for use of feeds.

Continue reading Is it time to jump into financial stocks?

Is it time to jump into financial stocks? originally appeared on BloggingStocks on Mon, 08 Oct 2007 16:45:00 EST. Please see our terms for use of feeds.

Countrywide (CFC) showing some class and good business sense originally appeared on BloggingStocks on Tue, 25 Sep 2007 13:26:00 EST. Please see our terms for use of feeds.

Countrywide Financial Corp (NYSE: CFC) September volatility at 116 prior to BAC preferred stock purchase.

CFC, a U.S. home mortgage lender, is recently trading at $25.85 in pre-open trading, above its close of $21.82 yesterday. Bank of America (NYSE: BAC) purchased $2 billion of preferred stock from CFC. Goldman Sachs says this is "a vote of confidence from BAC, but earnings prospects unchanged." CFC September option implied volatility of 116 is above its 26-week average of 59 according to Track Data, indicating larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

More Countrywide Financial news

Peter Cohan: Is Bank of America's (BAC) purchase of Countrwide Financial (CFC) a good bet?
Georges Yared: Bank of America (BAC) makes strategic investment in Countrywide Financial (CFC)
Douglas McIntyre: Will Berkshire Hathaway (BRK) buy parts of Countrywide Financial (CFC)?
Douglas McIntyre: New lay-offs signal Countrywide (CFC) is not out of the woods
Peter Cohan: What the mortgage meltdown means to you
Eric Buscemi: George Bailey, meet Angelo Mozilo
Peter Cohan: Countrywide (CFC) meltdown continues
Michael Fowlkes: Countrywide Financial (CFC) adds to subprime panic
Peter Cohan: Could Countrywide Financial (CFC) be put down?

Option update: CFC sells preferred shares to BAC, anxiety expected to decrease originally appeared on BloggingStocks on Thu, 23 Aug 2007 08:02:00 EST. Please see our terms for use of feeds.

Countrywide Financial (NYSE: CFC) volatility decreases as share price stabilizes. CFC, the largest U.S. home mortgage lender, is recently up $1.30 to $28.04. CFC call option volume of 10,877 contracts compares to put volume of 17,814 contracts. CFC August straddle is priced at $4.20. CFC September option implied volatility of 98 is above its 26-week average of 47 according to Track Data, suggesting larger price risks.

General Electric (NYSE: GE) volatility of 25 above 26-week average of 19. GE closed at $39.10. GE over all option implied volatility of 25 is above its 26-week average of 19 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) over all volatility of 61 above 26-week average of 33. BSC closed at $113.81. BSC over all option implied volatility of 61 is above its 26-week average of 33 according to Track Data, suggesting larger price movement.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Countrywide Financial (CFC) volatility subsides originally appeared on BloggingStocks on Tue, 07 Aug 2007 11:35:00 EST. Please see our terms for use of feeds.

Private equity borrowers and lenders battle originally appeared on BloggingStocks on Mon, 30 Jul 2007 14:01:00 EST. Please see our terms for use of feeds.

In this multi-part personal finance series, readers will learn various ways to help save money for a college education, from off-the wall-scholarships and 529 programs to the right time to refinance your loans. Parents and students alike who read this series will find something to help reduce the costs of a higher education before, during and after it takes place.

Part IV: Financial Aid

Last year, 1.8 million low- to moderate-income families missed out on help from the government because they did not fill out the Free Application for Federal Student Aid, or FAFSA for short, which is needed to qualify for any federal, state and some institutional financial aid awards, according to the American Council on Education. In addition, the Council estimated that 1.5 million families missed out on the Pell Grant, an award of $4,310 that does not have to be paid back, just because they failed to file the proper paperwork.

If I told you the government would give you $4,310 if you simply filled out a form, you'd do it in a heartbeat right?

Continue reading How to save money on your college education, part IV

How to save money on your college education, part IV originally appeared on BloggingStocks on Fri, 18 May 2007 17:38:00 EST. Please see our terms for use of feeds.

In this multi-part personal finance series, readers will learn various ways to help save money for a college education, from off-the wall-scholarships and 529 programs to the right time to refinance your loans. Parents and students alike who read this series will find something to help reduce the costs of a higher education before, during and after it takes place.

Part III: Work For It

When my friend James was in college, his parents made him learn the value of a dollar the hard way. They forced him to work during his education and didn't give him cent towards his schooling. He took out student loans and worked several jobs in his four-year stint at State, from after-school swim instructor to late-night security guard, he worked them all. Believe me; after all those hours of working while going to school full-time, he learned the value of a dollar. What he didn't know at the time, was the amount of college loans that piled up in the four years he was away.

Here are a few ideas that could help you not make the same mistakes he made:

Continue reading How to save money on your college education, part III

How to save money on your college education, part III originally appeared on BloggingStocks on Fri, 18 May 2007 16:59:00 EST. Please see our terms for use of feeds.

A look into the collapse of New Century originally appeared on BloggingStocks on Mon, 19 Mar 2007 12:30:00 EST. Please see our terms for use of feeds.

Mortgage market getting ugly originally appeared on BloggingStocks on Thu, 08 Feb 2007 00:02:00 EST. Please see our terms for use of feeds.