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reuters.com — A growing number of U.S. adults are struggling to pay their medical bills, tapping into savings accounts, home equity and credit cards to cover health care costs, according to a survey released on Wednesday. An estimated 72 million Americans aged 19 to 64, or 41 percent, said they had trouble paying for medical care in 2007, with some slipping far enough behind to face collection agencies. That compared to nearly 58 million, or 34 percent, in 2005, the Commonwealth Fund survey found. The report comes as U.S. consumers face rising financial pressures, including higher energy costs, food bills and mortgage payments.

money.cnn.com — As mortgage financiers Fannie Mae and Freddie Mac struggle with continuing credit losses, their ability to raise needed capital is uncertain and, analysts say, is complicated by the possibility of a government bailout of the two companies. Published reports about a possible bailout, continued quarterly losses at Fannie and Freddie and further deterioration in the credit markets have investors concerned about the mortgage companies' solvency. Those worries have sent the companies' prices tumbling, with Fannie falling another 4.49 percent and Freddie sliding 5.01 percent.

iht.com — Iraq is on the verge of reviving an 11-year-old contract with China worth $1.2 billion, its largest oil deal since the invasion in 2003, an Oil Ministry official said. The deal sets new terms for an agreement reached between China and Iraq under Saddam Hussein in 1997. Unlike that agreement, which included production-sharing rights, the new one is a service contract, under which China would be paid for its work at the Ahdab oil field southeast of Baghdad but would not be a partner in the profits.

— Consumers should brace for the biggest increase in food prices in nearly 20 years in 2008 and even more pain next year due to surging meat and produce prices, the Agriculture Department said. Food prices are forecast to rise by 5 percent to 6 percent this year, making it the largest annual increase since 1990. Just last month, USDA forecast food prices would climb between 4.5 percent and 5.5 percent in 2008. Prices are expected to rise by 4% to 5% in 2009, lead by red meat and poultry.

reuters.com — Major U.S. airlines will see a 6 percent drop in passengers during the eight-day Labor Day holiday period as high oil prices continue to roil the industry, the airlines' trade organization predicted. The Air Transport Association of America said that although fuel prices have declined in recent weeks, jet fuel has averaged $160.47 a barrel this summer, 79 percent higher than last summer's price. To survive, airlines have been making big cuts in routes, staff and capacity, as well as raising fares and introducing fees for checked bags and other services.

nytimes.com — Wholesale prices rose at a higher annual rate last month than they had in 27 years, making it more difficult for businesses to maintain profit margins as consumer spending declines. The 1.2 percent rise in wholesale prices, reported by the Labor Department, was well above economists' expectations and the latest report showing a sharp rise in inflation in July. Some of the higher prices have tapered off because of the recent decline in crude oil prices. But American businesses and consumers, along with central bankers, are facing an increasingly difficult situation. Businesses can raise retail prices and risk losing customers who are already squeezed by the downturn. Or they can eat the cost of more expensive goods and lose profits.

time.com — Construction of homes and apartments fell in July to the lowest level in more than 17 years, the government reported Tuesday. The Commerce Department said that builders broke ground on 965,000 housing units on an annualized basis. That was down from a pace of 1.08 million in June and the weakest showing since March 1991. The latest housing figures continue to show a badly battered housing market, one of the biggest problems plaguing the already shaky national economy. The report showed that construction of single-family homes in July fell by 2.9 percent from the previous month to a pace of 641,000. That was the lowest since January 1991, when the economy also was in distress.

money.cnn.com — Washington policy makers and housing industry insiders hope a new tax credit for first-time home buyers will get the moribund housing market moving again. But most analysts agree that the program is more of a band-aid than a cure-all for the battered real estate market. What's more, others are quick to point out that the credit must be repaid, which means it's actually an interest-free loan that could get some homeowners in trouble.

guardian.co.uk — Stock markets around the world have fallen amid new fears that the credit crunch will cause further damage to the banking sector. The global sell-off began last night in America, sparked by a report that the U.S. government will have to step in to rescue Freddie Mac and Fannie Mae, leaving investors with almost nothing. Shares in the two massive mortgage finance firms plunged, with Freddie losing 25 percent and Fannie 22 percent. Both companies have filed massive losses because of the slump in the U.S. housing market. Analysts said a government bail-out would lead to renewed fears that the worst of the financial crisis is to come.

ft.com — Fears about the financial system grew as money market liquidity tightened and sharp falls in the share prices of mortgage financiers Fannie Mae and Freddie Mac led the US stock market lower. Fannie's and Freddie's shares lost 22 percent and 25 percent, respectively, after an article in Barron's suggested that the U.S. government was considering recapitalizing the companies on terms that would all but wipe out existing shareholders.