1 in 8 U.S. homeowners late paying or in foreclosure

One out of eight U.S. households with a mortgage ended the first quarter late on loan payments or in the foreclosure process, in a crisis that will persist for at least another year until unemployment peaks, the Mortgage Bankers Association said on Thursday.

U.S. unemployment in April reached its highest rate in more than a quarter century and is still rising, helping propel mortgage delinquencies and foreclosures to record highs…

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U.S. Congresswoman Supports Mortgage Squatting

Government Regulators Aided IndyMac Cover-Up, Maybe Others

A brewing fraud scandal at the Treasury Department may be worse than officials originally thought.

Investigators probing how Treasury regulators allowed a bank to falsify financial records hiding its ill health have found at least three other instances of similar apparent fraud, sources tell ABC News.

In at least one instance, investigators say, banking regulators actually approached the bank with the suggestion of falsifying deposit dates to satisfy banking rules — even if it disguised the bank’s health to the public.

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GM’s financial struggles may cost thousands of retirees their pensions

Thousands of General Motors retirees in the Tampa Bay area are watching the unthinkable unfold.

Their paternalistic former employer, financial lifeline and symbol of America’s once-dominant manufacturing base is in its toughest fight for survival ever.

GM has warned it could run out of cash next year, and creditors could force the company into bankruptcy if it violates terms of some of its debt next month. Short of a massive federal bailout, the automaker’s stock could be worthless by next year, analysts have predicted. Even a Chapter 11 bankruptcy reorganization may not help unearth new financing because of the global credit crunch. That could mean liquidating the 100-year-old company.

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Making Financial Sense of the Coming Energy Crisis

Bush warns of ‘long and painful recession’

President Bush on Wednesday warned Americans and lawmakers reluctant to pass a $700 billion financial rescue plan that failing to act fast risks wiping out retirement savings, rising foreclosures, lost jobs, closed businesses and even “a long and painful recession.”

His dire warning came not long after the president issued extraordinary invitations to presidential candidates Barack Obama and John McCain, one of whom will inherit the mess in four months, as well as key congressional leaders to a White House meeting on Thursday to work on a compromise.

“Without immediate action by Congress, American could slip into a financial panic and a distressing scenario would unfold,” Bush said in a 12-minute prime-time address from the White House East Room that he hoped would help rescue his tough-sell bailout package.

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Night of the Living Debt

Close your eyes and picture your children, grandchildren and great-grandchildren, all alone and scared, in an old, abandoned graveyard. The moon disappears behind one of the gathering storm clouds. Lurching forms begin to emerge from behind tilting gravestones.

A hand emerges from the earth and clutches at one of your children. They all begin screaming and dashing about, desperately seeking safety that does not exist.

Suddenly, one child shrieks in heart-rending agony as, set upon by three moldy corpses, her slender leg is bitten by one. As each child tries to help the other, he or she also is taken to the ground by slimy zombie-like creatures who begin to feed on the tiny forms.

Then you realize that you are one of the zombies, just as you sink your rotten teeth into the warm, gently yielding flesh of your offspring.

Hollywood “B” movie stuff? No. Reality? Not yet, but it’s coming, even if only euphemistically.

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