Economics and Investing:

G.G. flagged this: Bank’s idea for tackling the financial crisis: six bicycles. The article begins: “The Bank of England considered buying bicycles so that its officials
could continue to move around in the event of a full-scale financial meltdown, the former City minister disclosed last night.”

San Bernardino seeks bankruptcy protection: San Bernardino, facing the possibility of missing payroll, becomes California’s third city in weeks to authorize a bankruptcy filing.

FHA bailout inches closer – FHA defaults surge 26 percent while upping mortgage insurance premiums to make loans more expensive. Foreclosure starts outnumber foreclosure sales 3 to 1.

RBS sent this: Wall Street’s latest sucker: Your hometown

Also from RBS: Rising costs push California cities to fiscal brink. Throughout the state, local governments are slashing services to avoid bankruptcy. For some, it’s too late. [JWR’s Comment: Just wait until the Fed is forced to abandon ZIRP. When interest rates rise, then the real pain will begin. Tangentially, for some insight just compare San Bernardino’s lavish glass-encased City Hall building with these humble structures, in Iowa. FWIW, I’m not reading many news stories about municipal bankruptcies in Iowa…]

Items from The Economatrix:

Moody’s Downgrades Italy Two Notches

Housing Is Not Out Of The Woods Yet:  Former FDIC Chief Bair

New Foreclosures Jump 9% in 2Q

How Your Bank Account Could Disappear