News
Bloomberg | Consumer Comfort in U.S. Climbs to More Than Five-Year High
Consumer confidence advanced last week to the highest level in more than five years as Americans’ views on the economy, personal finances and spending improved.
CNN Money | Bank of America hit with government lawsuits over mortgages
The Department of Justice announced a civil lawsuit on Tuesday alleging that Bank of America defrauded buyers of mortgage-backed securities by lying about the quality of the home loans involved. The Securities and Exchange Commission also announced a parallel case.
Bloomberg | Home Prices Rise in 87% of U.S. Cities Amid Recovery
Prices for single-family homes climbed in 87 percent of U.S. cities in the second quarter as the national housing recovery accelerated amid competition for a limited number of properties on the market.
CNBC | US consumer credit increased by $13.8 billion in June, less than expected
U.S. consumer credit rose less than expected in June, held back by the largest decline in credit card use in a year as households continue to pay down debts.
Econ Comments & Analysis
Washington Times | Obama’s next housing boom and bust
It would be funny if it weren’t so serious. The president has proposed to eliminate Fannie Mae and Freddie Mac, while at the same time proposing to put in place the same policies that caused the two government-sponsored enterprises to fail.
Fortune | What the end of Freddie and Fannie could cost borrowers
There are plenty of unanswered questions around the potential unwinding of Fannie Mae and Freddie Mac, but one thing is certain: It will cost homebuyers more to get a mortgage.
Bloomberg | A User’s Guide to Obama’s Inside-Out Economics
The president may be out of ideas, but he is never out of words. He has been sharing voluminous amounts of them with audiences over the last two weeks on his latest speaking tour, or pivot, on the economy.
Blogs
Economist | Time as money
How much we spend depends on how old we are. Generally, people increase their day-to-day expenditure until middle age, but spending drops thereafter. Economists call this the “hump” in life-cycle spending. But it is difficult to determine exactly what drives the fall in spending as people age
WSJ | Vital Signs Chart: Consumers Boost Borrowing for Cars, Education
Consumers continued to step up borrowing in June, namely for education and cars. Nonrevolving credit outstanding — including auto finance and student loans — rose $16.5 billion, a 10% annual rate, to a seasonally adjusted $1.99 trillion.
