March 2009

American home prices dropped  by the sharpest annual rate on record in January. The Standard & Poor’s/Case-Shiller 20-city housing index released Tuesday tumbled by a record 19 percent from January 2008. It was the largest decline since the index started in 2000. The 10-city index dropped 19.4 percent, also a new record.

All 20 cities in the report showed monthly and annual price declines.

Prices in the 20-city index have plummeted 29 percent from their peak in summer 2006, while the 10-city index has fallen 30 percent. Prices are at levels not seen since late 2003.

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LAS VEGAS– Vestin Realty Mortgage II, Inc. (Nasdaq:VRTB – News), a real estate investment trust (“REIT”), announced results of operations for the year ended December 31, 2008.

The Company reported a net loss of approximately $130.2 million or ($8.86) per share for the year ended December 31, 2008 compared with net income of approximately $16.9 million, or $1.14 per share for the year ended December 31, 2007.

The Company noted that the losses for the year ended December 31, 2008 were in large part due to non-performing loans, and the Company’s recording of loan loss provisions of approximately $83.7 million. In addition, the Company incurred write downs for real estate held for sale of approximately $47.2 million for the year ended December 31, 2008. The loan loss provisions and write downs for real estate held for sale are non-cash items. Net cash flow from operating activities was approximately $7.8 million. Read the rest of this entry »

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U.S. consumer spending rose for a second straight month in February, while incomes reversed the previous month’s gains, government data showed on Friday.

The Commerce Department said spending increased by 0.2 percent, after rising by a revised 1 percent in January, previously reported as a 0.6 percent increase. However, after adjusting for inflation, consumer spending in February fell 0.2 percent.

Incomes fell by 0.2 percent after January’s revised 0.2 percent rise. Analysts polled by Reuters had forecast spending to rise by 0.2 percent and incomes to fall 0.1 percent.

Savings fell slightly to an annual rate of $450.7 billion. The savings rate was at 4.2 percent in February, indicating that households were still remaining frugal.

Prices edged up in February, with the overall personal consumption expenditures price index rising 1 percent on a year-over-year basis from 0.8 percent in January. Excluding food and energy, the index rose 1.8 percent after gaining 1.7 percent in January.

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Orders to U.S. factories for big-ticket manufactured goods unexpectedly rose in February after a record six straight declines.

The Commerce Department says durable goods orders increased 3.4 percent last month, much better than the 2 percent fall economists expected. It was the first advance since July and the strongest one-month gain in 14 months.

The strength was led by a surge in orders for military aircraft and parts, but demand for machinery, computers and fabricated metal products also rose.

Still, the rebound was expected to be temporary given all the problems facing the economy, and a large drop in orders in January was revised even lower.

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Click here for the Treasury Departments Q&A for small business on the Recovery Act.

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