Some CNN Money news from Wall Street and Washington. CNN Money, "The number of housing permits issued nationwide fell to a 14-year low in October, although housing starts edged up slightly, according to the government's latest reading. It is seen as a necessary step to work through a record glut of completed new homes available for sale on the market. The report comes a day after the National Association of Home Builders' survey on its members' confidence matched a record low level."

From BBC News. "Doug Roberts, chief investment strategist at Channel Capital Research, said the latest figures from the Commerce Department would not offer much comfort to the struggling housing market."

"'There's a massive over supply, right now the mortgage market is tightening up, and people are running away from a free-fall,' he said."

The Associated Press. "All of the strength came in the volatile apartment sector, which jumped by 44.4 percent. Construction of single-family homes fell for a seventh straight month, declining by 7.3 percent in October compared to September."

"Applications for building permits, seen as a good sign of future activity, fell for the fifth straight month in October...down a sharp 24.5 percent from a year ago."

From Builder Online. "Builder confidence held at record lows in November due to 'continuing mortgage market problems and a substantial inventory overhang,' according to the latest National Association of Home Builders/Wells Fargo Housing Market Index."

"'Builders are worried that the national media has tended to report negative housing stories as if there is one real estate market, when, in fact, there is no such thing -- all housing markets are local,' said NAHB President Brian Catalde. 'As a result, some healthy markets are being unfairly impacted by this negative media coverage.'"

"'I think that the media coverage is on the top of the list -- that's basically the media talking about all the foreclosures that are coming around the corner or all the inventory that will be available to bid on,' Jim Brewer, VP of construction with Sherman Oaks, Calif.-based Spiegel Development told BUILDER Online."

"'We have buyers that are convinced that if they just sweat it out for a few more months, there will be a lower price or a better deal,' Brewer continues. 'Nobody wants to be made out for a fool to have paid more than the next guy.'"

From Reuters. "The index was unchanged at 19 in November, matching last month as the lowest reading since this gauge started in January 1985. Readings below 50 mean more builders view market conditions as poor than favorable."

"'The housing recovery is absolutely going to be measured in years, not in months,' said Sue Woodard, executive VP of Mortgage Market Guide."

"D.R. Horton Inc. said Tuesday it swung to a loss in the fiscal fourth quarter from a year-ago profit. Chairman Donald R. Horton said he expects the housing environment to 'remain challenging.'"

"The latest quarter includes pretax charges of $278.3 million for inventory impairments and $40.3 million of write-offs related to land option contracts that the company doesn't intend to pursue. The latest period also includes a pretax goodwill impairment charge of $48.5 million."

"Sales declined 35 percent to $3.12 billion from $4.8 billion in the 2006 period."

"'Market conditions continued to decline in our September quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive,' Horton said. 'We also experienced reduced mortgage availability due to tighter lending standards, and buyers continued to approach the home buying decision cautiously.'"

From Bloomberg. "Freddie Mac, the mortgage buyer that has helped almost 50 million Americans purchase a home, posted its largest-ever loss and said 'significant deterioration' in the housing market may force it to cut its dividend and raise capital."

"The loss was caused by a $2.24 billion decline in the value of derivative contracts and $1.2 billion in credit losses among the $2.7 trillion of mortgage assets Fannie Mae owns or guarantees."

"Freddie Mac's $713.1 billion portfolio as of September included $105 billion of securities backed by subprime mortgages."

"The fourth quarter will also prove 'difficult,' CEO Richard Syron told analysts today. 'There is nothing we see right now to be more optimistic,' Chief Financial Officer Anthony Piszel said."

Dow Jones Newswires. "Freddie Mac said its estimated regulatory core capital was just $600 million above regulatory requirements. In order to keep it from falling below that, it has engaged Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. to help consider 'very near-term capital raising alternatives.'"

"Freddie Mac is also 'seriously considering' reducing its fourth-quarter dividend by 50%. If those measures are not sufficient, then the company 'may consider additional measures in the future such as limiting growth or reducing the size' its retained portfolio."

"Freddie also said the fair value of net assets attributable to common stockholders, before capital transactions, fell about $8.1 billion during the quarter. The reduction was largely due to the credit losses."

The Wall Street Journal. "Chuck Schumer is lucky Congress ignored him. We're referring to the New York Senator's idea, which he has loudly promoted for months, that Fannie Mae and Freddie Mac should ride to the rescue of the housing market by buying up unwanted mortgages and guaranteeing them. Now those two mortgage giants are themselves under scrutiny amid concerns that they'll report big losses."

"Shares in mortgage lender Paragon Group plummeted 46 percent in early trading Tuesday after it disclosed difficulty securing new financing because of the subprime lending crisis in the United States. Paragon is Britain's third-largest company specializing in 'buy-to-let' mortgages, for buyers who intend to rent rather than occupy a property."

"'Whilst terms for renewal have been offered in principle, they are not attractive for a variety of reasons, including the high cost of such facilities in the current market environment,' the company said."

The Herald. "Alistair Darling yesterday promised to protect the interests of taxpayers in resolving the Northern Rock crisis, telling MPs that he 'fully expected' to get back all the public money loaned by the Bank of England, currently estimated at £24bn."

"In a statement to MPs, the Chancellor made clear that the vast amounts loaned to the Newcastle-based mortgage lender - put at £900 for every taxpayer - were secured against 'high quality' assets it held. 'The government has a clear duty to protect the public interest and we will do that,' declared Mr Darling."

"Vince Cable, the acting Liberal Democrat leader, said taxpayers' money had been used to prop up the bank and provide a profit opportunity for 'spivs in the City.' He called for the UK Government to nationalise 'temporarily' Northern Rock to provide stability before it could be sold off."

"However, Jim Cousins, the Labour MP for Newcastle Upon Tyne Central, said nationalisation would mean 'a slow lingering death' for the 6000 jobs at Northern Rock, its assets and the reputation of Britain as a major financial services centre with Mr Darling playing the role of undertaker."

"Northern Rock Plc. slumped for a second day in London trading after saying yesterday that bids are 'materially below' its market value. 'I can hardly believe that someone would come in and offer zero to the shareholders,' said Christian Stoian, who helps manage 2 billion euros ($3 billion) at (a) Swedish pension fund, including a 1.5 percent stake in Northern Rock. 'It is not a bankrupt company. They are making money.'"

"The cost of borrowing pounds for three months rose to a two-month high yesterday amid concern that losses linked to U.S. subprime home loans will grow."

"'People are making comparisons with Railtrack, where shareholders got nothing,' said said Simon Maughan, an analyst in London. U.K. rail operator Railtrack Plc operated around 2,500 stations in 2001 when the government asked the High Court to put the company into administration. About 49,000 shareholders lost a three-year legal battle to gain compensation in 2005 after a company partly funded by the government bought Railtrack's shares."

"John Gieve, the Bank of England's deputy governor for financial stability, said that money markets may face renewed 'tightening' before the end of the year."

"'There still may be more bad news to come,' he told a conference today on hedge funds in London. 'There's still a worry we haven't yet seen the bottom. Some markets are still very illiquid. As the year end approaches, we may see some tightening in money markets.'"

"Losses on holdings backed by U.S. subprime mortgages are prompting banks to hoard cash, driving up credit costs for companies and consumers. The three-month London interbank offered rate for pounds, or Libor, rose to 6.49 percent today, the highest in two months, suggesting banks are still reluctant to lend to each other."

"'It's already happened,' said George Buckley, chief U.K. economist at Deutsche Bank AG in London. 'That's telling you something about what the market thinks about the subprime risk.'"

"'In the last few weeks we've seen another lurch. There's been more pain than people anticipated,' Gieve said. 'Hedge funds have not been blown away yet by the first real market stress,' he said."

"The Bank of England 'identified that the most likely course of instability was the low risk premia, particularly in structured credit markets,' Gieve said."

"The risk that banks and brokerages from Citigroup Inc. to Bear Stearns Cos. will default on their debt is accelerating as analysts increase their estimates of losses from subprime mortgages, credit-default swaps show."

"Contracts on New York-based Citigroup, the largest U.S. bank by assets, rose 16 basis points to 95 basis points over the past two days, according to broker Phoenix Partners Group, setting a record today for the seventh time this month."

"Contracts on New York-based Bear Stearns have climbed 24 basis points the past two days to 174 basis points, about a six-year high. A rise signals investors are less confident in a company's creditworthiness."

"They dubbed it 'The Survivors' Conference.' In early November, 2,000 people who handle asset- backed securities for a living crowded into a ballroom to hear speaker after speaker explain why 2008 may be their worst year ever."

"'These events tend to become deeper and play out longer than most people initially expect,' says Michael Mayo, an analyst who covers securities firms at Deutsche Bank AG in New York. 'This is one of the slowest-moving train wrecks we've seen.'"

"The tumbling U.S. housing market will continue to inflict the damage. Mortgage-backed securities and collateralized debt obligations containing those securities are falling in price and won't find their footing anytime soon."

"That's because most of the subprime mortgages, which provide collateral for $800 billion in securities, have yet to go bad, says Christopher Whalen of Institutional Risk Analytics."

"'The collateral is not yet problematic,' Whalen says. 'That's the next big shoe to drop.'"

"'Until housing prices bottom out, the writedowns won't stop,' says Peter Kovalski, who helps manage more than $12 billion. 'The Street wants things right away, but it doesn't work that way.'"

"Wall Street profits are also plunging in the fourth quarter. Lower profits mean more firings. Bank of America Corp., JPMorgan Chase & Co., Bear Stearns, Citigroup, Lehman Brothers and Morgan Stanley announced more than 24,000 job cuts in the first 10 months of 2007."

"New York law firms are cutting associates for the first time since 2001 as the collapse of the subprime mortgage and credit markets causes private equity deal volume and structured finance work to slow."

"McKee Nelson is asking associates to take sabbaticals with 40 percent pay for campaign or charity work, unpaid sabbaticals that last as long as a year or severance packages that include four months pay and benefits, Nelson said."

"'When we realized this wasn't a transient event, we decided to size our staff to what we anticipate demand being,' Nelson said. 'It's nobody's fault that the market has caved in.'"