Arts, Charities and Industry Suffer Credit Crisis [Housing Tracker]

by: Judy Weil

Quotes of the Day

“You’re down, but it’s not that bad. Your worst day is certainly a dream day for most people.” – Paul Tudor Jones, the hedge fund manager who founded the charitable Robin Hood foundation. (NY Times, May 29th)

"The whole universe related to the auto industry is touched in some way - parts suppliers, manufacturers, salespeople, trucking people, the paint and metals industries. Even semiconductors." - William Ryan, auto industry analyst at Portales Partners. (Int’l Herald Tribune, May 26th)

Macro Effects of the Housing Slump

Robin Hood Raises $56.5 Million as Shakira, Crow Sing. “The Robin Hood Foundation's annual gala last night in New York raised $56.5 million, a drop of more than $15 million from the 2007 event as subprime mortgage losses and job reductions reverberated at Wall Street's biggest charity event.” (Bloomberg, May 29th)

Spoleto U.S.A. Forecasts Higher Costs and Deficit. “The Spoleto Festival U.S.A., after a decade of economic health, has hit hard times… They projected a $292,000 deficit for this season, a number that could be much larger… The officials cited a number of reasons: a drop in money from corporate donors, including a real-estate company that has taken a big hit in the subprime mortgage crisis; the loss of about $250,000 in state money because of budget cuts; the weak dollar, which makes it more expensive to pay foreign artists; and higher transport costs because of the price of oil. The total budget is forecast at $8.7 million.” (NY Times, May 27th)

The U.S. Housing Crisis Takes A Toll On The Auto Industry. “Auto lenders and banks have tightened their wallets, preventing hundreds of thousands of consumers from getting the financing they need for a car. Home equity loans, used in at least one of every nine deals, are no longer a source of easy money for many prospective buyers. And used car prices have fallen nearly 6% as repossessed cars and gas-guzzling trucks and SUVs flood auction lots. [All this,] on top of the softening economy... Marketing firm J.D. Power & Associates: About 14.95 million vehicles are expected to be sold in 2008, down from 16.2 million last year, as sales reach the lowest levels since 1995.” (Int’l Herald Tribune, May 26th)

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