Economics and Investing:

Chris in West Virginia was the first of several readers that mentioned Glenn Beck’s recent explanation of inflation, interest rates, and the history of destroyed currencies. It was a basic primer for the sheeple. I just wish he had taken a couple of minutes to explain the money multiplier effect of fractional reserve banking. Ehh! Probably too complicated for many television viewers to grasp.

The latest from Dr. Housing Bubble: Option ARMs Enter the Eye of the Hurricane: The $189 Billion Recast Problem Targeted Directly at the California Housing Market. Of $189 Billion in Securitized Option ARMs $109 Billion in California.

Norfolk Southern Railroad’s profit slides as traffic remains slow. Revenues fell across all of the railroad’s business segments. (Thanks to Damon for the link.)

GG noticed this piece by John Browne in The Asia Times: Inflation by Stealth

Items from The Economatrix:

Nine Banks Seized this Week, Total Up to 115. The fourth largest failure was California National Bank in Los Angeles

Are Things Really Getting Better?

New Home Sales Take Surprise Tumble

$8,000 Home Credit Still in Play Critic says government spent $43,000 for each sale that occurred because of the program

Investors Rush Back into Stocks as Economy Grows

Economy Growing But Recovery Could Be at Risk


Consumers Returning to Big Brands

Crude Prices Near $80 Again, Retail Gas Up Again JWR Adds: But wholesale inventories are very high, so expect prices to fall soon!

MetLife Posts 3Q Loss on Investment Losses

First-Time Jobless Claims Drop Less than Expected

Banks Cut Emergency Borrowing from Federal Reserve

US Economy: Consumers, Government Propel Growth; Economy Up for First in a Year

Mish: Houston is Bankrupt (As are California, Oregon, and Pension Plans in General)

Dollar, Yen Tumble as Growth in US Economy Spurs Risk Demand

Sprint Loses Nearly $500 Million in Third Quarter

Are US Treasuries About to Rally … Or Crash?

World Markets Fall After Weak US Consumer Report

Soros on the World Financial Crisis
His message: China must be part of the New World Order