Economy

TOP STORY: Existing home sales plunge in July by 27.2 percent from June level



WSJ, A1: "U.S. home sales plummeted in July to a level not seen in more than a decade, spurring fears of renewed weakness in housing prices and the broader economy." http://bit.ly/bh88gV 



NYT, A1: "The steep descent surprised nearly every analyst and put the volume of single-family home sales at the lowest level since 1995. The financial markets took the news badly, with the Dow Jones industrial average closing down 134 points to a six-month low. As investors sought security, the yield on the two-year Treasury note fell to a record low." http://nyti.ms/be8R1n 



"Lack of Jobs, Foreclosures May Keep Housing Depressed." Bloomberg: http://bit.ly/b73n0H 



Justin Fox (on Ezra Klein's blog) argues that housing prices need to fall more to lure buyers in. http://bit.ly/97QT6Y 



WSJ editorial calls for end to housing subsidies: "What people really need are jobs, and what the economy needs to create those jobs is for Washington to stop force-feeding investment to politically favored goals and let investors find the most productive uses for their money." http://bit.ly/9W0DKB



World markets jittery, says FT: "Fears that the US and other major economies are slowing sharply sent investors piling into the safety of government debt on Tuesday, sending UK, German and US bond yields down to record lows." http://bit.ly/cnJT0s


Eyes turn to Bernanke speech at the Fed's annual meeting on Friday, according to Reuters' Mark Felsenthal: "The big question now is whether the Federal Reserve will start buying Treasury bonds more aggressively again to provide the U.S. economy with a new injection of cash." http://bit.ly/bvrJzT 



More housing data coming Wednesday: New home sales from the Census Bureau and the mortgage applications index from the Mortgage Bankers Association

BOEHNER v. WHITE HOUSE ON ECONOMY. ICYMI: House GOP leader, in a Tuesday morning speech, called for Treasury Secretary Timothy Geithner and top White House economic adviser Lawrence Summers to step down. http://bit.ly/bWVocZ 



Gallup finds Americans' confidence in the economy at its lowest level this year. http://bit.ly/9sgt10 



Fiscal hawks at the Committee for a Responsible Federal Budget see House Minority Leader John Boehner (R-Ohio) open to deal on tax expenditures. http://bit.ly/aYDRQj 



Some good news for Dems on the stimulus: The Congressional Budget Office finds that it boosted GDP growth by as much as 4.5 percent and employment by as much as 3.3 million jobs. http://bit.ly/asWNl2

Germany's Deficit Soars. WSJ: http://bit.ly/c30Zkm

TAKES ON KRUGMAN ON TAX CUTS. Former Bush White House economic adviser Keith Hennessey says NYT columnist Paul Krugman's attack on the Bush-era tax cut extensions relies on "language tricks" and historical revisions. http://bit.ly/ds3rIG



Krugman's original column: http://nyti.ms/cXpgzJ

Americans rated their confidence in the economy as "poor" in July, and most don't believe the nation's economic situation is improving. 

Of those polled, 48 percent rated current economic conditions as "poor" during the week ending Aug. 22, closing in on the highest levels of the year, according to Gallup's Economic Confidence Index released Tuesday. 

The recent figures are in line with the July average of 47 percent and slightly worse than this time in 2009, according to the index. 

The latest data show consumer confidence giving up its modest gains of late July and early August during recent weeks.

Existing home sales plunged 27.2 percent in July despite the party's two-year campaign to ease the nation's real estate crisis.

A new report from the Congressional Budget Office found the stimulus package may have created 3 million jobs.

Voters are almost evenly divided over whether the stimulus helped the economy recover from a historically rough recession, according to a new poll by Rasmussen Reports. 

The Service Employees International Union (SEIU) on Tuesday will begin a week-long demonstration that includes fasting, candlelight vigils and a massive rally to stop JP Morgan Chase from laying off 19 janitors who work at Century Plaza, located in Los Angeles and owned by the firm. 

The union notes the firm that received $95 billion in federal bailout money and last year paid out more than $9 billion in bonuses to executives is now looking to layoff the janitors. 

Vice President Biden fires back, saying "Boehner and the Republican Party ran the economy literally into the ground."

With the economy struggling to create jobs, Sen. Mike Crapo (R-Idaho) has urged congressional leaders to implement the pending free trade agreements with Colombia, Panama and South Korea that he says will save or create 380,000 jobs, according finding by the U.S. Chamber of Commerce. 

Sales of previously owned homes plunged 27 percent in July to the lowest level in 11 years.

Americans 55 and older are filing for bankruptcy at an increasing rate, according to the study Aging and Bankruptcy Revisited.