July 2

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

Big Pay Packages Return to Wall Street (WSJ)
Compensation on Track to Soar as Earnings Recover From Crisis; ‘Like It’s 2007 Again’

The Bailout Halftime Report (NYT)
Steven Davidofftakes a step back and reflect on some of the results and broadly defined ironies of the bailout.

Car Makers See End to Sales Slide (WSJ)
New-vehicle sales in June fell 28% from a year earlier to 860,000 cars and light truck, the smallest decline in any month this year.

Treasury to Name Up to 9 Managers for Toxic-Asset Plan (Reuters)
Treasury Department is expected to name as many as nine fund managers to operate the Public-Private Investment Program (PPIP) to cleanse banks of toxic assets.

Data Give Signs of Global Recovery (FT)
World manufacturing figures suggest the worldwide recession is running out of steam in all big economies.

A V-shaped recession? (EconBrowser)
Economist James Hamilton looks at inventory investment for signs of economic recovery.

Credit Card Issuers Raising Rates Ahead of New Law (WP)
Credit card companies are raising interest rates and fees seven months before new rules go into effect that will limit their ability to do so.

Payrolls Probably Fell, Unemployment Rate Reached 26-Year High (BLM)
New government report says U.S. probably cut 365,000 jobs in June, offering little evidence to support the Obama administration’s promise to shore up labor markets.

Obama Widens Mortgage Refi Program (CNN)
With home prices still falling, administration opens up rescue program to homeowners whose loans are 125% of their home’s value.

Will Tax Breaks Boost Jobs? (BW)
States are doling out billions to woo companies and revive local economies. But their incentives may be undermining America’s recovery plan.