Other types of consumer loans also are souring, including credit cards and auto loans. But delinquent home-equity loans are rising faster, representing 12.5 percent of all delinquent loans in the fourth quarter at Bank of America Corp., the largest U.S. bank in stock-market value. That was up from 9.4 percent in last year’s first quarter, according to research firm SNL Financial.

Buy American!

The papers all report that Boeing is protesting the awarding of a $40 billion Defense Department contract to EADS, the European maker of Airbus, and Northrop Grumman. Boeing says the Air Force changed the criteria for the air tanker to suit its competitors.

That may be thin gruel, but when combined with the intense political pressure for awarding a potentially $100 billion contract to a European-led team, it wouldn’t be surprising if the deal is at least modified.

With thousands of jobs on the line and larger issues about U.S. defense policy in question, lawmakers aren’t holding back from trying to get Boeing back in the game. “We’ve got to straighten this out if we’re going to maintain a defense industrial base,” said Kansas Rep. Todd Tiahrt, who said during the same hearing that the Air Force had “stacked the deck” against a U.S. manufacturer in favor of European companies like EADS. Kansas also is home to significant Boeing operations.

The WSJ says it could end up with the Pentagon rebidding the contract.

Downward Dollar

In economic news, the trade deficit widened in January as high oil prices overcame increased exports.

And the dollar fell—again—on what Bloomberg says is doubt that the Fed’s huge move yesterday will make much of a difference.

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