COUNTRYWIDE ACKNOWLEDGES HOUSING MARKET WOES

On July 24th Countrywide Financial acknowledged that the housing market "might not begin recovering until 2009 because of a decline in house prices," and that even borrowers with good credit are starting to fall behind on their loans. This announcement triggered a sell-off in the stock market, and signals a shift toward a more skeptical view of the future of the housing market than that to which many executives have previously held. According to Vikas Bajaj of the New York Times, Angelo Mozilo, Countrywide's chairman and chief executive, said that "because of a large number of homes on the market, the housing sector would continue to suffer until sometime in 2008 and not begin recovering until 2009."

As a result of the downturn, major lenders such as Countrywide, Wells Fargo, and others have stopped offering risky sub-prime mortgages. But it isn't just sub-prime borrowers who are struggling with payments. Even "credit-worthy" customers are showing the potential to default as home prices fall. "Countrywide said about 5.4 percent of the home equity loans to customers with good credit that it held an interest in were past due at the end of June, up from 2.2 percent at the end of June 2006."

To read the article in its entirety and see detailed statistics, go to Top Lender Sees Mortgage Woes for ‘Good’ Risks

LIBRARIES OF THE MASTERS

Harriet Rubin's recent article in the New York Times, entitled "C.E.O. Libraries Reveal Keys to Success," provides a fascinating glimpse into the sources of inspiration and wisdom for some of the most successful and innovative business persons of our time.

From Nike founder Phil Knight to Apple's Steven Jobs to Visa founder Dee Hock, it turns out that personal--and often very private--libraries seem to be the most valuable of treasures for these giants.

The libraries that Rubin's investigated combine to create quite the eclectic collection: Asian history, Aristotle, William Blake, T. E. Lawrence, Machiavelli, John Steinbeck, Omar Khayyam, and John Cornwall, just to name a few.

In addition to the most well known writers and thinkers throughout history, many of the articles featured librarians keep every book they've ever read. As Shelly Lazarus, the chairwoman and chief executive of Ogilvy & Mather, says: "Once I’ve read a book I keep it. It becomes a part of me."

To read the article in its entirety, go to "C.E.O. Libraries Reveal Keys to Success "

ONLY BILLIONAIRES NEED APPLY...

With 56,000 square feet, 95 acres, and a price tag of $135 million, Hala Ranch in Aspen, Colorado is the most expensive single-family residential property in the nation on the market, according to Kirk Johnson of the New York Times.

The property was built for the family of Prince Bandar bin Sultan who served as the ambassador to the United States for Saudi Arabia until 2005. Prince Bandar now works for the Saudi National Security Council and is selling the property as he will not be spending as much time in the States.

"Mere wealth" cannot afford the luxuries of Hala (the private barbershop and beauty salon just off the master suite, for example); Joshua Saslove, the real estate broker who's listing the property, will only consider billionaires. Since there are only 946 billionaires out there, according to Forbes, the pickings are rather slim.

But such is the story of Aspen's west side, where "an ordinary lot, 60 feet by 100 feet, costs $3.5 million."

To read the article in its entirety, go to "A $135 Million Home, but if You Have to Ask ..."