Wondering

What, me worry?

   The Bank of England said it will keep interest low, at 0.5 percent for government funds, until the unemployment rate drops to 7 percent from its current 7.8 percent.
   On this side of the pond, two Federal Reserve governors said the U.S. central bank may squeeze off the money pump next month, and the Fed chief put the target indicator at a 7 percent unemployment rate. It's now 7.4 percent, down from 7.6 percent in June.
   Meanwhile, President Obama announced a move to get rid of Fannie Mae and Freddie Mac as the nation's primary home mortgage guarantor. The two companies well belly up during the nation's financial crisis, and were bailed out by the government. The thinking now is to get rid of the moral hazard of letting the companies think they could be more loose in their lending, knowing the government would bail them out if they sank.
   Message: No more bailouts; you're on your own.
   Whether all these things will happen soon, or not until the economy returns to health, is another issue.

   As to economic good news, the Commerce Department reported that the U.S. international trade deficit dropped in June, as exports rose and imports declined. American firms sold more stuff overseas than they bought for resale to U.S. consumers that month. Want numbers? The value of exports in June totaled $191.2 billion, up from exports in May valued at $187.1 billion. Imports that month were $225.4 billion, down from $231.2 billion.
   In an economy totaling $16 trillion, however, a foreign trade deficit of $34.2 billion is a relatively small percentage.