| ITT Educational confident in 2008 view
CARMEL, Ind. - Post-secondary education provider ITT Educational Services Inc. said Thursday it is "confident" it can achieve 2008 earnings per share of $4.50 to $4.60 despite the reduction in lender subsidies under federal student loan programs and tight credit markets which are pressuring students. Analysts surveyed by Thomson Financial expect full-year profit of $4.47 per share, on average. The company said it expects to continue to improve student retention, but believes future increases in the quarterly persistence rate will moderate from 2007 levels. "Recently, there has been a lot of speculation in the market with respect to the ability of our students to obtain the financing needed to pay their education costs," said Chief Executive Kevin Modany in a statement. "This speculation was caused by a recent reduction in lender subsidies under the federal student loan programs and the current credit crunch that arose from the subprime mortgage crisis." ITT said it has arranged for Bank of America, Chase Education Finance and Citibank, The Student Loan Corp.
CNBC's Money Mentors Team Up For Debt Makeovers In 'The Millionaire ...
With the holidays behind many consumers and 2008 in full swing, most Americans are feeling pressure to get their debt under control. What kind of debts are people facing this year? Credit card debt, medical debt, mortgage debt, "Gen X" debt and student loan debt are just some of the bills keeping Americans from their dreams. CNBC's money mentors have now teamed up for "The Millionaire Inside: Debt Makeover," which will help guide consumers to stomping out their debt in 2008. The show premieres Jan. 29 at 9 p.m. and midnight ET. The Millionaire Inside: Debt Makeover gives four guests debt makeovers of a lifetime. Money Mentors Carmen Wong Ulrich, Ric Edelman, Dr. Doug Hirschhorn, and John Ulzheimer each provide part of the debt prescription plan needed to help guests stop the vicious debt cycle and to start investing for the future.
Cleveland suit smells like a pig
Running a pig farm is a sloppy business. Lagoons of manure put a stench in the wind and may even contaminate the neighbors' wells. "Creating a public nuisance" is what they call it. And for pig farmers, public- nuisance lawsuits can be a cost of doing business. Last week, the city of Cleveland filed a public-nuisance lawsuit against some of the biggest pig farmers I know: 21 investment banks and lenders whose subprime-mortgage- lending practices have allegedly turned Cleveland into a sty. "The city has become the poster child for the national foreclosure crisis," the city's lawsuit reads. "An average of 20 Cleveland homeowners faced the grim reality of foreclosure every day in 2007." After suffering more than 7,500 foreclosures last year, Cleveland now has "entire streets, blocks and neighborhoods" of abandoned homes that have become "eyesores . . .
Consumers at heart of stimulus plan
In Salt Lake City, Munn Powell is used to funding a family of six on a bit of an economic roller coaster. A self-employed videographer, his income varies yearly and usually drops when times get tough. "After 9-11, it was a measurable drop," said Munn, 37, who's a father to 3-year-old twins, a 6-year-old boy and an 8-year-old girl. Under the Bush stimulus plan, the family would qualify for about $2,400. Munn says he hasn't discussed a possible rebate with his wife of 12 years, Cristy, but said the family has a fairly set financial plan. "I imagine we'd be somewhat conservative with any little windfall," said Munn, who just finished a spending splurge remodeling his basement. "Honestly, it's probably going to back into our reserves. That's probably not what Bush is hoping for." ___ Associated Press writers Dinesh Ramde in Milwaukee and Jennifer Dobner in Salt Lake City contributed to this report.
French bank uncovers massive $7 billion fraud by futures trader
Societe Generale filed a complaint Thursday with a court in Nanterre, west of Paris, accusing the trader of fraudulent falsification of banking records, use of such records and computer fraud, the bank said in a statement. The Paris prosecutor opened a preliminary investigation Thursday based on a complaint filed by a small shareholder concerned about losses incurred because of the fraud, a judicial official said. The Bank of France, the country's central bank, said it was immediately informed of the fraud and was investigating. Societe Generale's shares, which have lost nearly half their value over the past six months, were suspended in Paris on Thursday morning, then dropped 5.5 percent to 74.77 euros ($108.97) when they resumed trading. The bank said it detected the fraud — comparable to a full year of its profits in stable times — at its French markets division the weekend of Jan.
New notebook is impressive
Its quick boot-up has made it perfect for writing quick e-mails (and this review) whenever I had a moment of inspiration.
I'm not tossing my larger notebook computer, which I'll continue to use for editing photos and for other tasks that feel constrained on the Eee PC's tiny 5-inch screen. But it's hard not to be impressed with a full-service laptop light enough to be carried along with sunscreen and a magazine in a flimsy plastic bag, as I did during a recent trip to Cancun, Mexico.
As it refines the software and instructions, ASUS - better known as the world's largest maker of computer motherboards - could garner a following among mainstream computer users who right now might be puzzled by some of the eccentricities of Linux.
The $400, 8.9-inch by 6.5-inch, 1.4-inch thick Eee PC is a new entrant in a fast-growing market for ultra-portable PCs.
Personal bankruptcies jump 96% in Metro Orlando
Amid the growing mortgage-debt crisis, personal bankruptcies nearly doubled in Metro Orlando last year, although they remained far lower than the record levels earlier this decade, according to court figures released this week.
Nearly 7,060 debtors declared insolvency in Orlando's federal bankruptcy court in 2007, up 96 percent from 2006, the U.S. Bankruptcy Court for the Middle District of Florida reported.
Fueled by the mortgage crisis, personal bankruptcy is reaching all levels of the income spectrum -- from affluent professionals to lower-income subprime borrowers, bankruptcy lawyers said.
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Mortgage Rates Hit 30-Month Low
More bad news on the economy sent mortgage rates down for the third straight week to a 30-month low. The average rate on a 30-year, fixed-rate mortgage fell 18 basis points to 5.69% during the week ended Thursday, according to a survey by Freddie Mac (FRE - Cramer's Take - Stockpickr). A basis point is a hundredth of a percentage point. Over the past three weeks, 30-year mortgage rates have fallen by a cumulative 45 basis points. Freddie says that's the steepest three-week decline since September 2003. At this time last year, rates on 30-year fixed-rate mortgages averaged 6.23%. The news wasn't all good: Those looking to purchase a home or refinance an existing mortgage can now expect to pay origination fees and discount points of 0.5% of the total loan amount, on average.
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