Economic News - September 7, 2008

Employment Situation - August 2008

• Nonfarm Payroll Employment: 137,473 million


• Monthly Change: Down 84,000


• Unemployment Rate: 6.1%

Federal government to take over mortgage markets

The rumors are that sometime Sunday the Treasury Department will
announce that the two big mortgage market makers, Fannie Mae and
Freddie Mac, are being forced into conservatorship under the Federal
Housing Finance Agency. If true, this will mean the federal government
will directly control well over half the secondary mortgage market in
the United States when considering the Ginnie Mae (FHA) market already
in federal hands. For taxpayers, which means most homeowners, this is a
huge potential liability if mishandled.

Financial Roadmap: The Week Ahead September 7 to 13, 2008

This week will be a long one for investors, a full seven day week. The
most important event of the week is expected sometime Sunday when the
Treasury will formally announce a conservatorship for mortgage giants
Fannie Mae and Freddie Mac, placing the assets of half of the US
mortgage market directly under federal control. The week won't end
until Saturday's running of the St. Leger Stakes at Doncaster
Racecourse in Britain officially ends the summer down season for
stocks, at least for ceremonial and superstitious purpose

Treasury to Outline Fan-Fred Plan

The Treasury is expected to announce early Sunday afternoon details of a
plan under which regulators will effectively take temporary control
over Fannie Mae and Freddie Mac.

GSE Takeover May Help Homebuyers

Homebuyers and holders of Fannie and Freddie debt are the likely beneficiaries of
a Treasury plan to takeover the beleaguered mortgage giants, but it is
less clear how shareholders will fare.

Fannie Mae, Freddie Mac's Capital Concerns Prompt Paulson to Take Control

Treasury Secretary Henry Paulson
decided to take control of Fannie Mae and Freddie Mac after a
review found the beleaguered mortgage-finance companies used
accounting methods that inflated their capital, according to
people with knowledge of the decision.

U.S. Retail Sales, Excluding Autos, Probably Had First Drop in Six Months

A measure of U.S. retail sales probably fell for the first time in six months in August as
Americans paid less for gasoline and pared purchases at shopping
centers, economists said ahead of a government report this week.

Almunia Says Europe Faces a `Serious Slowdown,' Growth to Recover in 2009

European Union Economic and Monetary
Affairs Commissioner Joaquin Almunia said economic growth in the
region will recover in 2009 after a slowdown in the second and third quarters.

Lagarde Says France May Have to Cut 2008 Growth Forecast After Contraction

France may have to cut its growth
forecasts after the economy shrank in the second quarter and
because of ``current economic circumstances,'' Finance Minister
Christine Lagarde said.

Ecuador central bank ups '07 GDP data and '08 view

QUITO, Sept 5 (Reuters) - Ecuador's central bank chief on
Friday said his institution has revised upwards its economic
growth data for 2007 and was raising its forecast for economic
expansion this year to above 4 percent. 

U.S. jobs disappear

Sep. 5 - The labor market struggled in August
with the unemployment rate near a five-year high and jobs lost for the
eighth month in a row. 

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