Economics and Investing:

F.G. forwarded this news story: Bank ‘walkaways’ from foreclosed homes are a growing, troubling trend. If foresaw buyers walking away from houses, but not banks!

A piece that I missed from earlier this month: Banking system like South Sea bubble, says senior Bank of England official

Reader MAM sent this fascinating piece from Columbia Journalism Review: Goldman Sachs to the Forefront. The plot thickens!

LJ on England spotted this: Deflation fears as the underlying rate of inflation reaches its lowest level since 1948

Items from The Economatrix:

Lawmakers Blast Paulson for His Response to Crisis

Philadelphia Suspends Payment of Contracts

Ambrose Evans-Pritchard: Fiscal Ruin of Western World Beckons

Ron Paul and Jim DeMint Take on the Fed

Four Wall Street Banks Reject California IOUs

Bank of America Earns $2.4 Billion in 2Q, Ahead of Estimates

General Electric Profits Drop 47% in 2Q

Unemployment Tops 10% in 15 States, DC

Many Predict US Financial Collapse in September
“What will this fall really bring? It is not too far away so we shall soon know. Unfortunately, it may make last fall look pretty tame. When the government answers economic distress by preparing for the worst, then the worst may very well be what happens.”