Econ 101: July 11, 2011

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • A meeting of Congressional leaders last night at the White House “adjourned after roughly 75 minutes without agreement over how far the parties should go in cutting the deficit over the next decade or whether tax cuts and entitlement reductions should be a part of any deal” to raise the nation’s debt ceiling. [Washington Post]
  • Economists fear that the end of government support to individuals that was enacted to combat the recession “will further crimp consumer spending and act as a drag on a recovery that is still quite fragile.” [New York Times]
  • House Republicans “ran away from defense cuts last week with the great majority opposing even modest reductions at the expense of military bands or the Pentagon’s sponsorship of NASCAR races to promote recruitment.” [Politico]
  • Nearly half of states “cut back on their all-important spending on need-based financial aid, even as enrollments boomed and as many students and families struggled to keep pace with tuitions that public colleges (or their legislatures) raised sharply.” [Inside Higher Ed]
  • Mega-bank Wells Fargo “has agreed to pay $125 million to a group of pension funds and other investors to settle allegations the bank failed to warn investors of the risks the poorly-written mortgage backed securities.” [Associated Press]
  • Gov. Tom Corbett’s (R-PA) radical education agenda largely shrivels in the state legislature. [The Morning Call]
  • Bank of America and JP Morgan Chase “will have to meet a July 13 deadline to submit remedial plans for their foreclosure practices while federal and state officials continue working on broader settlement terms” regarding the foreclosure fraud scandal that broke several moths ago. [Bloomberg]
  • Elizabeth Warren, who is setting up the newly formed Consumer Financial Protection Bureau, will appear before the House Oversight Committee on Thursday, giving the GOP “one last chance to air public critiques of the CFPB before the new agency begins its work.” [The Hill]
  • Rep. Jim Jordan (R-OH) — chairman of the ultra-conservative Republican Study Committee — “warned GOP leaders that he and a growing group of conservatives will vote against any debt limit deal — even if they support it — if the House and Senate have not first passed a balanced budget amendment.” [Roll Call]
  • Christine Lagarde, the new director of the International Monetary Fund, “foresees ‘real nasty consequences’ for the U.S. and global economies if the U.S. fails to raise its borrowing limit.” [Associated Press]