Eye on the Economy

Stories today from Bloomberg that caught my eye:









Pension Plans’ Private-Equity Cash Depleted as Profits Shrink
Aug. 20 (Bloomberg) -- U.S. pension funds contributed to the record $1.2 trillion that private-equity firms raised this decade. Three of the biggest investors, state pensions in California, Oregon and Washington, plunked down at least $53.8 billion. So far, they only have dwindling paper profits and a lot less cash to show the millions of policemen, teachers and other civil servants in their retirement plans. Read the full story here

Mortgage Delinquencies Rise to Record as U.S. Home Prices Fall
Americans fell behind on their mortgage payments at a record pace in the second quarter as job losses and falling real estate prices thwarted government efforts to stabilize the housing market.
Read the full story here

U.S. Initial Jobless Claims Rose by 15,000 to 576,000
More Americans unexpectedly filed claims for jobless benefits last week, indicating companies are trying to cut costs further even as the economy stabilizes.Applications rose to 576,000 in the week ended Aug. 15 from a revised 561,000 the week before, the Labor Department said today in Washington. The number of people collecting unemployment benefits the week earlier was little changed at 6.24 million. Read the full story here

Philadelphia Area Manufacturing Unexpectedly Expands
Manufacturing in the Philadelphia region unexpectedly expanded in August for the first time in almost a year, a sign the economy is pulling out of the recession. Read the full story here

Corporate Defaults Soar to $453 Billion, S&P Reports
Corporate defaults worldwide rose in 2009, surpassing the number for the whole of 2008, Standard & Poor’s said in a report today.A total of 201 issuers defaulted through Aug. 12, affecting $453.1 billion of debt, S&P said. That’s up from 126 defaults totaling $433 billion for all of last year, the report said. Read the full story here

From Reuters:

Getting ready for the dollar’s fall, It just won’t go away, this needling worry about the U.S. dollar losing its coveted top-dog status.
No matter that there are plenty of reasonable arguments to support the dollar as the world reserve currency — namely there’s just no alternative — for perhaps decades to come.Yet, in a world where once-rock-solid assumptions quickly turn to dust, investors should keep an eye on the dollar since changing perceptions are chipping away at its cherished status as currency to the world. Read the full story here

New York Times reports:
A Surprise Increase in U.S. Jobless Claims
WASHINGTON (AP) — The number of newly laid-off workers filing claims for unemployment benefits rose unexpectedly for a second consecutive week, an indication that jobs remain scarce.
Read the full story here