Economics and Investing:

Dollar hit on Fed’s signal of low rates. Meeting minutes show Fed has strong lean to more debt monetization. (Thanks to GG for the link.)

Brian H. sent us a link to a piece in Zero Hedge. that quotes Money magazine: “Now 5 institutions hold 97% of the notional value [face amount] and 88% of the market value in derivatives, and they are all basically in the same business and all basically hedge with each other. It is not a true hedge when the other side can’t pay, and history has clearly proven how easy it is for the other side not to be able to pay.” [JWR Adds: That is the very definition of derivatives counterparty risk.] Brian’s comment: “I would add that the risk isn’t just concentrated in these “Too Big To Fail” Five. The risks are clearly placed on the backs of the taxpayer, either through Federal Reserve inflation or direct confiscation of taxes passing through to the banks.”

Items from The Economatrix:

Why the Housing Rescue Hasn’t Prevented Record Foreclosures

BofA, GE Stocks Push Results Lower

Summers: Banks Must Accept Goernmnent Regulation

BofA Posts 3Q Loss on Defaults: $1 Billion

GE Profits Fall 45%, as Revenue Trails Estimates

US Consumer Confidence Worse than Forecast

Investors Get Jitters as Citigroup Fuels Fears Over US Economy

You Ain’t Seen Nothing Yet at Goldman

The People v. Wall Street

60 Million Mortgages May Have Fatal Flaws. This refers to the Mortgage Electronic Registration Systems (MERS)