AP LEDE: "It's starting to feel like another recession."
"Businesses are ordering fewer goods. Home sales are the slowest in decades. Jobs are scarce, and unemployment claims are rising. Perhaps most worrisome, manufacturing activity, which had been one of the economy's few bright spots, is faltering."
The wire story comes after reports Thursday showed that durable-goods orders from June to July rose 0.3 percent, less than the 3 percent expected, and new home sales dropped 12.4 percent instead of holding steady.
DOUBLE-DIP ODDS INCREASING, ANALYSTS SAY
Zandi says odds of another recession are one-in-three, calls for
temporary extension of Bush tax cuts for the wealthy. http://bit.ly/bkAwTf
Roubini puts double-dip odds at 40 percent, projects GDP growth of less
than 1 percent in third quarter. http://bit.ly/amvoDl
Goldman Sachs: 25-30 percent. http://bit.ly/dq5jDQ
PREVIEWING BERNANKE'S FRIDAY SPEECH
Neil Irwin: "With statistics due out Friday that are expected to show
the economy grew much less than estimated in the second quarter of the
year, Fed-watchers are hoping Bernanke's comments later that day in
Jackson Hole, Wyo., will instill confidence that he has a plan and can
act decisively if the economy continues to deteriorate. They warn that
recent conflicting signals from Fed insiders may even be contributing
to economic weakness by spooking financial markets. http://bit.ly/a4wiDL
Sewell Chan: "It is not known what Mr. Bernanke will say [Friday], but
some insight may come from an episode in his past: his concern, soon
after he became a Fed governor, that the economy was at risk of
deflation as the nation gradually recovered from the dot-com bust a
decade ago." http://nyti.ms/b7F3Nd
Fed Vice Chairman Alan Blinder says the Fed is almost out of tools to
help the economy.
Fun link of the day. Roy Blunt channels Old Spice to find interns. http://bit.ly/ak9QDe
REGS: Banks will still be able to make risky deals under Wall Street
reform act. NYT: http://nyti.ms/biJCu5
gives shareholders more power over corporate boards. http://bit.ly/d2BCLA
WH still against extending tax cuts for wealthy. VP
Biden says GOP argument to prolong cuts for the "super rich" is
Obama takes a break from his vacation to talk economy with Geithner and
Summers, a day after House GOP Leader John Boehner called for the
ouster of the two economic aides. http://bit.ly/9Iw2j6
call for Simpson to step down from fiscal commission. http://bit.ly/a2KTMZ
But... WH says Simpson isn't going. http://huff.to/cBBq7j
The IRS is
going overboard in targeting bad tax preparers, Reps.
Brad Sherman (D-Calif.) and Mike Conaway (R-Texas) write in WSJ op-ed. http://bit.ly/axVL02