Economic Agenda: March 16, 2010

Key Events

8:30 a.m.: The Commerce Department releases data on new home construction in February; economists surveyed by Bloomberg expect housing starts to have dropped 3.6 percent from January, mainly because of inclement weather. Another economic release worth watching: the Labor Department issues data on import and export prices for February.

10:30 a.m.: The Federal Communications Commission delivers to Congress its long-awaited plan to bring high-speed Internet access to virtually every U.S. household and business. The agency has scheduled an open meeting on the plan.

2:15 p.m.: Top Federal Reserve officials release a statement on interest at the conclusion of a one-day monetary policymaking meeting. Economists surveyed by Bloomberg expect the central bank to keep rates steady at the current, ultra-low level of 0.25 percent, but the Fed's statement may shed some light about the economic recovery.

In Tuesday's Washington Post

The Federal Communications Commission's proposal to vastly expand broadband access throughout the United States seeks to bring more competition to the market for Internet services and help bridge a digital divide that has largely excluded low-income and rural residents from the Web.

Sen. Christopher J. Dodd (D-Conn.) introduces his version of legislation to overhaul the nation's system of financial regulation, but it remains unclear whether the measure will garner enough votes from Republicans and conservative Democrats to ensure its passage. Already, financial industry lobbyists and consumer advocates are taking shots at different elements of the bill.

The United States and other large countries get a stern warning from Moody's that they risk losing their top credit ratings unless they slash spending and shore up their shaky public finances.

The former head of a New York bank seized by regulators last week has been accused by federal prosecutors of trying to defraud the taxpayer-funded bailout program, marking the first time criminal charges have been filed in connection with alleged abuse of the government's financial rescue.

The issue of runaway acceleration is not strictly Toyota's, and every car maker has experienced similar incidents, writes Jeremy Anwyl, the head of consumer automotive Web site Edmunds.com. In his opinion article, Anwyl argues that the government and industry need to work together to find a root cause for the problem.

Speaking of Toyota: Two D.C.-area residents have filed personal injury lawsuits against the Japanese automaker, alleging that they suffered severe injuries after the vehicles they were driving suddenly accelerated.

What we're reading elsewhere

2012--the sequel? In two years, more than $700 billion in high-risk corporate debt starts to mature, and with the government in the middle of a borrowing spree, the timing could not be worse, the New York Times reports. Some companies may have a tough time securing new financing, and the result could be a spike in corporate bankruptcy filings.

In the battle over the yuan, a volley from Capitol Hill: More than 100 lawmakers have signed a letter sent to President Obama urging swift U.S. action on China's currency, which they consider undervalued and a drag on American exports. Read the Financial Times account.

Winners and losers? If enacted, the financial regulatory reform bill introduced on Monday would inflict the deepest pain on the nation's biggest banks by imposing tighter scrutiny and requiring payments into a fund in the event a major firm failed, according to a Wall Street Journal analysis. Meanwhile, community banks would be better positioned to compete with larger rivals.

In defense of CDS: Since the onset of the financial crisis, credit-default swaps have been widely blamed for fomenting market instability and criticized for lacking transparency. But in an item posted on The Atlantic's Web site, Charles Davi steps up to defend these esoteric bets on debt, arguing that the CDS market is "relatively transparent" and a generous provider of useful information on credit quality.

Pensions in peril: The bankruptcy of General Motors last year provided a bitter preview of the larger troubles in public- and private-sector pensions, which currently are saddled with trillions of dollars in unfunded liabilities. Read Institutional Investor's sobering assessment of the looming U.S. pension crisis.

Tough words for the Street: During a speech last week, Sen. Ted Kaufman (D-Del.) blasted Wall Street and said that "fraud and potential criminal conduct were at the heart of the financial crisis." His remarks win praise on the Baseline Scenario blog from former International Monetary Fund chief economist Simon Johnson, now a professor at MIT.

Also caught our eye

Weak credit imperils job prospects: Job seekers nowadays are finding that a checkered financial history can wreck their chances of landing the position they want, the Wall Street Journal reports, and the trend is dealing a double-whammy to unemployed people who hope to get back on their feet but racked up unpaid bills while out of work.