Econ 101: August 5, 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 stock market fell more than 500 points yesterday, erasing all of 2011’s gains. It was the worst stock tumble since December, 2008. [Dow Jones Newswires]
  • “More than $4.4 trillion have been wiped out from equity market values worldwide since July 26,” as global markets fall due to continued bad economic news. [Politico]
  • Members of the Federal Reserve “are reluctant to take further steps to stimulate economic activity. Still, persistent unemployment and fresh turbulence in financial markets could boost the pressure on the Fed to do something.” [Reuters]
  • New York Attorney General Eric Schneiderman (D) has “asked a state judge to reject a proposed $8.5 billion settlement agreement over soured loans between Bank of America and a group of investors.” [Huffington Post]
  • The Department of Housing and Urban Development has reached a separate settlement with Bank of America over charges that the bank failed “to adequately provide alternatives to foreclosure on 57,000 delinquent government-insured mortgages.” It requires BofaA “to waive a minimum of $10 million in unpaid mortgage payments and vet each of the 57,000 delinquent borrowers” for a foreclosure alternative. [American Banker]
  • Mega-bank Citigroup “was subpoenaed by the California Attorney General’s Office over mortgage securitization.” [Bloomberg]
  • According to the latest Census Bureau data, “the percentage of people who owned a home had dropped to 65.9% during the second quarter — its lowest level since the first quarter of 1998 and a far cry from the high of 69.2% reached in late 2004.” [CNN Money]
  • A survey released this week by the Consumer Federation of America found that the median bank overdraft fee is $35, “the same as it was last year. The highest fees also remain $33 to $37 per overdraft.” [Associated Press]
  • At least 23 states have approved cuts to K-12 education for the coming year, reductions that will shrink or eliminate a broad array of school programs and services, particularly those serving the neediest communities,” according to a new report from the Center on Budget and Policy Priorities. [Education Week]
  • I was on MSNBC’s The Ed Show last night, talking about the Dow’s dive. Watch it: