OPINION: ‘New Welfare Queens’ Did Not Cause Mortgage Crisis · Conservative political circles are circulating the idea that the mortgage crisis is a result of the Community Reinvestment Act of 1977, writes Ed Kilgore, but this fiction is specious. (Democratic Strategist) "In truth the CRA didn t require lending to unqualified applicants though it did provide that applicants' credit-worthiness could be established..., and in any event CRA doesn t even apply to the non-bank lenders responsible for the vast majority of bad mortgages."

Paulson Defends G-7 Communique · The Group of Seven issued a communique on the first day of their meetings in Washington, DC.  It promised to take "decisive action and use all available tools" without specifying what they are beyond supporting the Financial Stability Forum's recommendations. (WSJ)

McCain Campaign Ties Obama to ACORN, Hence Mortgage Meltdown · The McCain campaign is linking Barack Obama to the non-profit group ACORN, which is under investigation for various voter registration irregularities. (Time) A new McCain ad links Obama to ACORN, then associates ACORN with the sub-prime mortgage crisis, "pressuring banks to make risky loans." (YouTube) Audio of McCain campaign adviser Rick Davis and Missouri Gov. Matt Blunt. Official Republican Party website devoted to the Obama-ACORN connection.

Experts Debunk McCain Mortgage Buyout Plan · John McCain's proposal to directly buy and refinance troubled home loans has led some mortgage industry experts to criticize the plan as flawed. (Washington Post) They say $300 billion underestimates the magnitude of the housing crisis. Alan Blinder, former vice-chair of the Federal Reserve, said it "would be giving the biggest gifts to the lenders who made the worst mortgages."

U.S. Retailers Post Major September Sales Drops · Big U.S. retailers' September same-store sales were worse than expected. J.C. Penney sales fell 12.4%, while Saks had a 10.9% drop. Costco and Wal-Mart Stores posted gains, but less than analysts had expected. (WSJ)

Citi Exits Wholesale Mortgage Business · Citigroup will reportedly exit the wholesale U.S. mortgage business, reducing the number of brokers it does business with from 9,500 to about 1,000 and eliminating an additional 500 sales positions in its mortage unit. (WSJ)

One In Six Owe More On Home Than It’s Worth · Plunging U.S. home prices mean 16% of homeowners owe more on their home than it is worth. Among homes bought with the last five years, 29% are under water. The rates raise the possibility of more defaults. (WSJ)

Dubai’s Real Estate Market Slows · Dubai's six-year boom real estate market has slowed, according to Cityscape exhibition participants. Its growth was fueled by foreign investment. State funds back government linked property developers, providing a bottom to that market segment. (FT)

Moscow Real Estate Bailout May Cost $2B · Moscow government officials are saying the city may spend as much as $2 billion to aid real estate developers with liquidity problems. (Bloomberg)

PROFILE: Robert Toll, Master Overbuilder · Robert Toll's luxury home-building company was one of the winners of the housing bubble. With the bubble now popped, he concedes Toll Brothers made some foolish deals. (Portfolio.com)

OPINION: American Populism Created Financial Crisis · Janet Albrechtsen, a weekly columnist for The Australian, argues that the American Dream of "home ownership for all" is economically reckless because it allows U.S. homeowners to wipe their hands of liability through nonrecourse mortgage loans. (WSJ)

U.S. Apartment Vacancy Rate Rises · The vacancy rate for U.S. rental apartment buildings rose to 6.1% in the third quarter and average asking rents were essentially flat at $1,053. Vacancies had been expected to decline because of troubles in the housing market. (Bloomberg)

Mall Vacancies Rise To Highest Rate Since 2001 · Vacancy rates at U.S. malls and shopping centers rose to 6.6% in the third quarter from 6.3% in the previous quarter, as the slowing economy prompted retailers to close stores. The vacancy rate is the highest rate since late 2001. (WSJ)

FEATURE: Reviving The Empire State Building · The Empire State Building is a cultural icon, but long a commercial real estate flop. Now, owner Wien & Malkin is looking to new tenants to make the building's real estate profile as high as its spire. (NYT)

OPINION: Bailout Won’t Stem Mortgage Crisis · Harvard economist Martin Feldstein contends the U.S. Treasury's $700 billion bailout plan fails to address the root of the financial crisis: falling house prices. Feldstein suggests the government offer full-recourse, mortgage-replacement loans to U.S. homeowners on the verge of default. (WSJ)