Some housing bubble news from Wall Street and Washington. "Hovnanian Enterprises said it expects to recognize impairment charges and report a fourth-quarter loss. 'Our financial results for the fourth quarter continued to be negatively impacted by high cancellation rates and increased use of concessions and incentives, particularly on the resale of those homes which experienced contract cancellations,' said CEO Ara Hovnanian."

"The Red Bank, N.J.-based company said it expects to take about $300 million in quarterly impairment and land-option write-off charges. ' Like other builders, Hovnanian's walking away from deposits placed on options for land as the housing market pulls back. 'Although it is painful to incur these non-cash charges, we believe it is much better than proceeding to build out these communities at very low returns or losses over the coming years,' said CEO Hovnanian."

"'One reason cancellations are so high is that people think they can get the same house cheaper if they just wait a week or two,' said M.D.C. Holdings CEO Larry Mizel."

"Dominion Homes Inc continues to struggle amid the housing market slump, posting another quarterly loss. The company, which builds single-family units in Central Ohio, and Louisville and Lexington, Ky., lost $5.9 million in the third quarter. 'Home sales conditions remain challenging across the country and our markets have been especially hard hit,' CEO Douglas G. Borror said."

"To cut costs, Borror said the company is reducing its land development and acquisition activity. Dominion also has cut its workforce so far this year by about a third."

"A day after luxury home-builder Toll Brothers Inc. said quarterly revenue took a 10 percent hit amid a weakened housing market, Orleans Homebuilders Inc. Wednesday revised its outlook downward for its fiscal year."

"The Bensalem, Pa., homebuilder reduced its guidance on earnings and revenue and said that it has turned to, among other initiatives, sales incentives to cut inventory levels. The company believes the 'negative' residential market is expected to continue."

"The company saw new orders plunge by 55 percent, backlog drop by 56 percent and net income fall by 50 percent to $3.9 million, compared to the same period a year ago."

"Toll Brothers chief executive said the economic trends are leading customers, even those in the high income bracket that his company serves, to take a wait-and-see approach. 'Nobody wants to buy something that they think will cost less two weeks or two months later,' said Toll Brothers CEO Robert Toll."

"The ailing housing industry is beginning to infect related businesses, such as those that make and sell wallboard, carpet, paint, cabinets, faucets and tools. It also is hurting mortgage lenders."

"'I had someone tell me at dinner the other night that people ordering [PVC] pipe were ordering it by the hundreds of feet rather than truckloads,' said Paul Carrico, VP at Atlanta-based Georgia Gulf Corp. 'So whenever that sort of thing happens, everybody is really going on fumes,' he told analysts."

"Issuance of U.S. asset backed securities is seen declining in the year ahead, led by a drop in home equity volume, as further signs of a weaker housing market emerge, issuers and investors said during a conference in Florida."

"Home equity has been the driver of issuance in the ABS market this year, as consumers facing higher monthly payments moved out of adjustable-rate mortgages and into fixed-rate loans as interest rates rose. 'The home equity cycle has really played itself out and 2007 will be much different,' said Paul Colonna, VP at GE Asset Management."

"NovaStar Financial Inc. reported lower third-quarter earnings on Tuesday. The company attributed the slide to steps taken to prepare for a worsening credit market. The Kansas City-based company reported a 27 percent decrease from earnings (from) the same quarter last year."

"NovaStar CEO Scott Hartman said that third-quarter earnings were impacted by increased reserves for its on-balance sheet transactions and loan repurchases. Earnings also were affected by increased loss assumptions in its mortgage securities portfolio."

"The company recorded mortgage securities impairments for the quarter of $6 million, because of more pessimistic loan value assumptions as interest rates rise and the housing market slows."

"Mortgage finance giant Fannie Mae said Wednesday it will not file its 2006 third-quarter report on time, due to a pending restatement of past financial statements."

"In a filing with the Securities and Exchange Commission, Fannie Mae said it determined financial statements from January 2001 through the second quarter of 2004 should no longer be relied upon, due to issues with accounting practices and material weaknesses in internal controls over financial reporting."

"The Federal Reserve has failed to communicate its determination to bring down inflation in a forceful enough fashion, raising the risk that price increases will become entrenched, according to Jeff Lacker, president of the Richmond Fed."

"He added the Fed sometimes talked about pass-through 'as if it is a force of nature rather than a product of policy expectations.'"

"His remarks are likely to be seen by some Fed watchers as critical of Ben Bernanke, the Fed chairman, even though Mr Lacker was careful not to mention him by name."