Thursday morning headlines

Zig-zag market: First down, then up, then down again. Not many buyers and lots of nervousness about the world economy.

Foreclosures fall: January filings in California were down almost 11 percent from the previous month and 6.4 percent from a year earlier. Even so, six CA cities had some of the nation's highest foreclosure rates, including Riverside-San Bernardino-Ontario, at one in 109. (RealtyTrac)

Citi's foreclosure idea: Pilot program that lets homeowners stay in their house for six months, so long as they turn over the deed to their property. CA is not among the states involved so far. (AP)

Big jump in bankruptcies: January filings in L.A. County (both individual and business) were up a whopping 64 percent from a year earlier. OC filings were up 59 percent. From the OC Register:

"Everyone I talk to expects first and second quarters of 2010 will have a lot more business filings," bankruptcy attorney Jim Bastian of Shulman, Hodges & Bastian in Foothill Ranch said late in 2009. "Expect an uptick in commercial real estate (filings) and some retailers, who will come through the holiday season and realize after the first of the year their sales were not as good as they hoped."

Commercial RE worries: Congressional report warns that loan losses could jeopardize the stability of thousands of small and midsize banks. From the NYT:

From 2010 to 2014, about $1.4 trillion in commercial real estate loans will reach the end of their terms, according to the report, a copy of which was provided by the panel to The New York Times. Commercial property values have fallen more than 40 percent since the start of 2007, and nearly half of the loans coming due are "underwater," meaning the borrower owes more than the property is worth, according to the report.

Deal on Greek debt: EU leaders stopped short of immediate financial support, but gave assurance that they would help if the nation ran into trouble refinancing later this year. The concern has been that Greece's problems would spread elsewhere in Europe. (FT)

Toyota fix update: About 50,000 recalled cars are being repaired each day, says an executive for the automaker, who added that the pedal fix would last "a lifetime.". (USA Today, DJ)

Silicon Valley warning: Two local groups worry about the region's future as the world's tech capital, citing state budget woes, less money for schools, and competition from other areas. From the Mercury News:

Employment is back to 2005 levels, with 90,000 jobs lost in less than two years; the influx of foreign science and engineering talent has slowed; venture capital funding has declined; and there are fewer middle-income wage earners in a "hollowing out of the middle." Per capita income is down 5 percent from 2007, and the number of people working as contractors rather than full-time employees is rising.

Bumper grape crop: Harvest is only second in size to 2005, with red grapes up 24 percent from 2008 and white grapes up 21 percent. The Pinot crop was especially big. But prices haven't fallen much. From the SF Chronicle:

John Ciatti, partner at Ciatti Wine Co., one of California's top wine brokers, pointed out the report doesn't include pricing for grapes still controlled by growers themselves. So if a grower was fed up with last fall's bargain-basement prices and crushed grapes themselves to sell as wine, or if a winery is still in control of its own grapes, those prices weren't factored in.