In a major win for labor unions, the SEC on Wednesday gave investors new powers to nominate corporate board members.

New home sales fell 12.4 percent in July to the lowest level on records dating back to 1963 despite low prices and mortgage rates. 

The unexpected drop in purchases rounds out three of the worst months on record as sales dropped to an annual pace of 276,600, down from a revised 315,000 units in June, the Commerce Department reported Wednesday. 

The median home price in July was $204,000, the lowest level since 2003. The median price was down 4.8 percent from a year earlier and 6 percent from June. 

Sales were down across the country, with purchases falling 25 percent in the West, 14 percent in the Northeast, 9 percent in the South and 8 percent in the Midwest. 

Mark Zandi, an analyst who advised Democrats on the stimulus, sees a one-in-three chance of a second recession.

Durable goods orders increased less than expected in July, providing another sign that the nation's economic recovery is slowing. 

Demand for manufactured durable goods rose 0.3 percent last month after analysts had predicted up to a 2.8 percent gain, the Commerce Department said Wednesday.

Despite large gains in transportation equipment orders — up 13.1 percent in July — for civilian airplanes and cars, orders for other durables outside transportation dropped unexpectedly by 3.8 percent, the largest drop since January 2009. Business also sharply cut back their capital spending.

Demand decreased for machinery, computers and fabricated metals last month, according to the report. 

Nearly two-thirds of workers polled (60 percent) say they are not optimistic about the direction of the U.S. economy, and 62 percent feel less secure about their job compared to a year ago, according to a new Spherion Staffing Services Snapshot survey.

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

A Washington trade association for bond dealers is undergoing a revamp and adding new members.

The Regional Bond Dealers Association announced Tuesday that it has renamed itself the Bond Dealers of America and has added Minneapolis-based Piper Jaffray as a member. Piper has 25 offices in the United States, as well as in London and Hong Kong.

The association's membership has increased from 14 in 2008 to 35 firms this year. The association represents banks and securities firms in the U.S. fixed-income market.

"In a very short period, this association has become the established, go-to organization for the industry, as well as legislators and regulators seeking expert perspectives on U.S. fixed income markets," said Ken Williams, president and CEO of Stone & Youngberg and chair of the association, in a statement.

Other large members include Raymond James and Wells Fargo.

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.

The American Institute of Certified Public Accountants (AICPA) said new IRS rules to regulate an estimated 1.2 million paid tax preparers would place immense financial burdens on smaller firms that must comply with the regulations.