Dollars for Dishwashers?

Two sectors hit hard by the recession—manufacturing and housing—showed signs of improving in July, the Washington Post reports. The Commerce Department announced yesterday that increased demand for commercial aircraft and motor vehicles boosted orders for durable goods by their biggest margin in two years. And, for the fourth straight month, new home sales increased. Both manufacturing and housing have benefited from federal programs—including efforts to make credit more accessible; the Cash for Clunkers program, which ended Monday; and the first-time-home-buyer tax credit, which will run out at the end of November. "The question now," the paper posits, "is whether both sectors will sustain their gains once the subsidies are gone or future demand has been siphoned off."

Federal regulators have approved what the Wall Street Journal calls "watered-down guidelines for private-equity firms seeking to snap up failed U.S. banks." The rules are still restrictive when it comes to private equity ownership of banks, but the Federal Deposit Insurance Corp. decided to back away from proposed rules that would have made the buyouts much tougher. Under the rules, private equity firms have to hold onto a bought-out failed bank for at least three years, and investors need to "maintain larger amounts of high-quality capital at their acquired banks." The still-tough rules point to the dilemma that regulators are facing, the article points out: "They need to find buyers for failed banks while ensuring that investors aren't playing the game to turn a quick profit."

According to the New York Times, the cost of solar panels is dropping. Due to an increase in the supply of a panel ingredient, prices have fallen about 40 percent since the middle of last year. While it typically takes 22 years for solar panels to pay for themselves in place with high electricity costs, these price drops, together with new federal incentives, could reduce that time to 16 years.

Apple (AAPL) is getting closer to tapping one of the last major phone markets it hasn't reached yet—China. The Wall Street Journal reports that the rumored-to-be-pending release of the iPhone in China would "turbocharge" growth for the already fast-growing product. While the United States has more than 270 million mobile subscribers, China has a whopping 687 million. Apple products don't sell well everywhere, but the brand is popular in China at a time when Internet cell phone usage is increasing. Analysts say that Apple's negotiations with a state-owned wireless operator, which is expected to carry the iPhone, are almost over.

According to the Detroit News, in the final week of the Cash for Clunkers program, the Big Three automakers saw their sales fell sharply. Collectively, General Motors (MTLQQ), Ford (F), and Chrysler Group LLC sold 38.6 percent—approximately 266,000—of the nearly 700,000 clunker replacements. The U.S.-based automakers said that they were hurt by a relative shortage of small, fuel-efficient vehicles that foreign competitors didn't experience. U.S. Transportation officials announced yesterday that, after $100 million in administrative costs are accounted for, around $23 million earmarked for car and light truck sales in the program will remain unspent. It's still not clear what will happen to the leftover funds.

Now that Cash for Clunkers has wrapped up, get ready for the sequel: dollars for dishwashers! The $300 million federal program is coming to an appliance store near you, according to the Wall Street Journal. The initiative is intended to boost sales of energy-efficient appliances, but its scope will be small compared with the auto program. Thus, it's doubtful that the program will make much of a difference to the big appliance makers. Unlike the clunkers plan, this program lets each state select qualifying models and adjust rebate amounts. For example, the paper suggests that Ohio might choose one washing machine that qualifies for a $100 rebate, while California selects another for $125. "States could ask to include up to 46 other types of products, ranging from light bulbs to computers," the article says, "While rebates are expected to range between $50 and $200, qualifying models and precise rebate amounts won't be provided until late this year or early next."