July 17

What you need to know to navigate today’s economic debates.

Bank of America Posts a Profit on Trading Gains (NYT)
Bank of America, one of the nation’s largest and most troubled banks, announced on Friday a $3.2 billion second-quarter profit.

Citi Reports $4.3bn Second-Quarter Profit (FT)
Citigroup recorded a $4.3bn profit in the second quarter, thanks to a $6.7bn one-off gain from the partial sale of its brokerage unit.

The Joy of Sachs (NYT)
Economist Paul Krugman discusses what we can learn from the fact that Goldman Sachs earned record profits despite the stagnation in the broader economy.

Housing Starts in U.S. Climb to Seven-Month High (BLM)
Housing starts in the U.S. unexpectedly rose 3.6 percent in June bring housing starts to an annual rate of 582,000, the highest level since November.

CIT Rushes to Secure Lending, Bankruptcy Feared (Reuters)
CIT Group Inc was in discussions on Thursday with potential lenders to secure financing, after talks with the government collapsed.

Retailers Fear Impact of a CIT Bankruptcy (WP)
Many retailers could face disruption in flow of merchandise.

Paulson Counters His Critics (NYT)
Several lawmakers accused Mr. Paulson of misleading Congress about how he had planned to use the $700 billion authorized under TARP.

FOMC Forecasts - Reality or Fantasy? (FedWatch)
Tim Duy analyzes the economic projections in the minutes from the June FOMC meeting.