Econ 101: August 1, 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.

  • The White House last night announced the contours of a deal to raise the debt ceiling that cuts $1 trillion in spending over the next ten years and sets up a special committee to reduce deficits by a additional $1.5 trillion. It includes no new revenue (though the committee could theoretically raise revenue later). [White House fact sheet]
  • Speaker of the House John Boehner (R-OH) last night assured conservatives that “”there’s nothing in this [debt ceiling deal] framework that violates our principles,” adding “it’s all spending cuts.” [The Hill]
  • The White House has confirmed that “there would not be an extension of unemployment benefits as part of the final package” to raise the debt ceiling. [Huffington Post]
  • The U.S. homeownership rate dropped “to the lowest level since 1998 in the second quarter as stricter lending standards blocked purchases and foreclosures forced people out of their residences.” [Bloomberg]
  • The stock market drop last week cost investors $680 billion. [Bloomberg]
  • Budget cuts mean fewer firefighters to combat California’s wildfires. [McClatchy]
  • In her farewell note to the employees of the Consumer Financial Protection Bureau, which she played an instrumental role in creating, Prof. Elizabeth Warren wrote, “I leave this agency, but not this fight.” “The issues we deal with — a middle class that has been squeezed and business models built on tricks and traps — are deeply personal to me, and they always will be,” she said. [Huffington Post]
  • Bank of America is facing yet another lawsuit stemming from its 2008 purchase of troubled lender Countrywide. [Associated Press]
  • According to a new survey, “consumer sentiment fell in July to its lowest point in more than two years, as anxieties over stagnant wages and rising unemployment deepened.” [Reuters]
  • Tennessee is the latest state seeking “to use its revamped education standards to measure schools instead of those mandated by No Child Left Behind.” [Associated Press]
  • “Four out of 10 new public school teachers hired since 2005 came through alternative teacher-preparation programs,” according to new data released by the National Center for Education Information. [Education Week]