Tuesday morning headlines

Low, lower, lowest?: L.A. area home prices took another dip, according to the closely watched S&P/Case-Shiller 20-city housing index. The drop from October to November was 2.2 percent and the decline from November 2007 was 26.9 percent. As usual, L.A. has been among the hardest hit metro areas, though it’s very misleading to blend all portions of Los Angeles into a single percentage. (press release)

Still more about home prices: The housing service Zillow.com has L.A.-area home prices falling 21 percent for all of 2008 (see above note). The price cuts have spurred sales in L.A. and elsewhere, but economists don't see a real turnaround until later in the year at the earliest. From the WSJ:

There are glimmers of hope. The Realtors said there were 3.68 million previously occupied homes listed for sale at the end of December, down 7.5% from a year earlier. Moratoriums on foreclosures by some lenders probably reduced the flow of such homes into the market late in the year, said Michelle Meyer, an economist at Barclays Capital. Separately, The Wall Street Journal's quarterly survey of housing-market conditions in 28 major metropolitan areas shows that inventory levels dropped fastest in some places where foreclosures are attracting bargain hunters. These areas include Los Angeles, San Francisco, San Diego, Sacramento and Orange County, Calif., as well as Denver and Washington, D.C.

Bank stops lending: The feds have told L.A.-based First Federal Bank of California to stop taking on new loans and ordered it to submit a detailed recovery plan. FirstFed said it would eliminate 62 jobs to trim costs. From the LAT:

FirstFed began tightening its lending requirements in late 2005, before its rivals did so, improving its odds of survival, analysts said. Nonetheless, its ratio of nonperforming assets -- a measure of bad loans -- stood at 7.9% on Sept. 30, up from 1.4% a year earlier.

SAG ready to deal?: Now that executive director Doug Allen is out, how long will it take for the guild to cut a deal with the studios and networks? Will they want to drag things out a little in order to save face? The union's negotiating committee has been replaced by a task force appointed by the board, which is now controlled by moderates. (LAT, THR)

Madoff hearing: The Senate Banking Committee is holding a hearing this morning on how Bernie's Ponzi scheme escaped detection for so many years and what regulatory changes are needed to avoid a repeat. Live blogging from DealBook.

What recession? Corporate titans, eat your hearts out. McDonald's, which reported better-than-expected fourth-quarter earnings, plans to open 1,000 new restaurants in 2009. The fast-food giant posted a 5.8 percent rise in worldwide December sales. (Reuters)

Palmdale on its own: L.A. airport officials turn in their federal certification to operate the desert facility. Palmdale Mayor Jim Ledford said the city is assuming responsibility for attracting carriers to the airport. Good luck. (LAT)

Corporate jets sit it out: Poor Tampa - it just happens to be hosting the Super Bowl in one of the worst economies in a generation. That has the bizguys keeping this weekend's festivities on the subdued side. PricewaterhouseCoopers estimates that visitor spending will be down by $50 million. From the NYT:

The business jet industry has been staggered lately not only by a bad economy, but also by a palpable public backlash against high-flying corporate jets. That was apparent last November when executives of Detroit’s Big Three automakers flew in their private jets to Washington to ask for federal bailouts. Starting late last year, the use of corporate jets dropped sharply, as companies eliminated or curtailed flight departments and as individuals cut back on charter flights.

Cal Worthington on NPR: Still peddling cars after 50 years, he talks about the troubled auto industry. "This is absolutely, beyond a doubt, the worst time I have ever seen in the car business," he says. (NPR)

Lacter on radio: This week's business chat on KPCC is with Mark Austin Thomas (Steve Julian is off). We talk about what all the layoffs mean for the local economy and the future of downtown. Also on kpcc.org and on podcast.