According to the Federal Reserve, the best way to prevent future housing bubbles is to require lenders to be tougher in enforcing loans based on one’s income. The Chicago Fed reported that its economic activity is below trend. The Residential Price Index, on the other hand, increased month-over-month.

Regional and state unemployment rates were reported slightly higher. The Leading Economic Index is also slightly up, as are gas prices, spreading worry that the uptick may trigger a shopping slump by consumers. Fannie Mae and Freddie Mac bailout terms have changed; now the two GSEs need to pay whatever profits they make rather than the fixed amount.

Housing starts dropped. E-commerce, on the other hand, continues to flourish despite the downward economy. Unemployment rose slightly.

The Housing Market Index increased by 2 points. National for-sale inventory remains at historic lows. And inflation is currently at a standstill, despite predictions of the drought spiking up food and energy prices.

Consumers shopped a lot more this time around, pulling retail sales up compared to the previous month. Southern California, one of the worst-hit national real estate markets, is showing signs of recovery. The EU budget, on the other hand, continues to shrink.

Euro-zone debt does not take a vacation. Even in the summer, debt-inclined countries continue feeling the pinch of borrowing costs and joblessness.