Economics and Investing:

The other shoe has finally dropped: China reduces holdings in US debt. Expect more of the same in the months to come. (Thanks to Dave S. for the link.)

From GG: Mounting joblessness fuels US housing crisis

Noah was the first of several readers to mention this article about the failure of the second largest US bank of the year: Bank Failure #81: Down Goes Guaranty

Items from The Economatrix:

The Mother of all Bank Runs

Unemployment: The Worst Hit States in July

US Stocks Rise, Sending S&P to Highest Level in 10 Months

Bank Failures in the US

Even Warren Buffett is Now Saying US Treasury Bonds Could Crack

US Helps Spanish Company Buy Failured Texas Bank by Putting $9.7 Billion Loss on Taxpayers

Seller, Beware: Feds Cracking Down on Yard Sales