July 28

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

Small Banks at Center of Overhaul Debate (WP)
The Obama administration’s efforts to overhaul regulation of the financial industry could rest in the hands of the country’s 8,000 community banks.

Politicians Accused of Meddling in Bank Rules (NYT)
A report from the Financial Crisis Advisory Group claims that accounting rules did not cause the financial crisis, and they still allow banks to overstate the value of their assets.

Traders Blamed for Oil Spike (WSJ)
The Commodity Futures Trading Commission to issue a report next month suggesting speculators played a significant role in driving wild swings in oil prices.

Equity and Efficiency in Health Care Markets (EconBrowser)
Economist Mark Thoma explains why health care markets need government intervention.

Stimulus Creates, Saves More Jobs in June: Committee (Reuters)
The number of jobs created or saved by infrastructure projects funded by the U.S. economic stimulus plan more than doubled in June from May.

Home Prices in Major U.S. Cities Probably Fell at Slower Pace (BLM)
The S&P/Case-Shiller home-price index fell 17.9 percent from a year earlier following an 18.1 percent drop in April.

US Seeks Closer China Ties (FT)
Barack Obama urges China to forge deeper ties with Washington on the economy, climate change and nuclear proliferation.

Budgets by the People, for the People (NYT)
Chris Elmendorf and Ethan J. Leib argue a participatory budgeting procedure to breaking budget stalemates would result in more timely, responsive and transparent budgets.