"The US financial crisis is spreading from subprime borrowers to wealthier consumers, with evidence mounting that more affluent people are failing to pay their mortgages and credit card balances," the
Financial Times reports. "Growing concerns over the financial health of richer borrowers are prompting banks and card issuers to tighten lending practices in moves that could futher dampen consumer confidence and spending more."
"Home prices in 20 U.S. metropolitan areas probably fell at a faster pace in May, indicating the three-year housing slump hasn't stabilized, a private survey today may show. The S&P/Case-Shiller home-price index dropped 16 percent from May 2007, according to the median forecast of 25 economists surveyed by
Bloomberg News."
"The nation's top financial regulators and four of its largest banks announced plans yesterday to expand a method for financing mortgages, called 'covered bonds,' in an effort to reinvigorate the frozen housing market," the
Washington Post reports. "Covered bonds are securities that a bank can sell to raise money for home loans. In return, the bank receives monthly payments from homeowners and pays back the bonds. "
"As carriers from American Airlines to Thai Airway International respond to high oil prices by shedding jobs, culling routes and grounding aircraft, Middle Eastern carriers are expanding as fast as they can in hopes of redefining their region as the aviation crossroads of the globe," the
New York Times reports.