Economics and Investing:

Items from Mr. Econocobas:

Dow Tumbles Nearly 400 Points on China Worries- Dow and S&P Off to Worse Start Ever – I would expect a relief rally very soon, otherwise I don’t see how we don’t get a serious intervention by world central banks.

Silver Seen Beating Gold as Ratio Rises to Near Historical Peaks– And we are not even talking about the historical average of around 16:1.

Most Americans are One Paycheck Away from the Street

Items from Professor Preponomics:

US News

Watchdog Says Government Agencies Ignore Billions in Savings (Taxpayers for Common Sense) Excerpt: “Agencies have a “too cavalier” attitude about findings by the government’s watchdog…”

Alcoa Plans to Close Largest US Aluminum Smelter Amid Tumbling Prices (Reuters) Excerpt: “…will permanently close its 269,000 tonne-per-year Warrick Operations smelter in Evansville, Indiana, by the end of first quarter, the latest in a string of U.S. smelter curtailments as producers struggle with tumbling prices.”

International News

Saudi Economy Implodes: Fascinating Solution Emerges. (Zero Hedge) Will this be the Saudi’s version of a Hail Mary? Excerpt: “Because reading between the lines, what this announcement really means is that Saudi Arabia is scrambling: for it to resort to partial privatization of its crown jewel, which is what selling stake in an IPO would mean, it suggests two things: the government is desperate to obtain liquidity at any price, and it means that if successful, the Saudi regime will be able to continue its strategy of crushing its high production cost competition for a long time thanks to the new funds.”

Will Saudi Aramco Go Public? (Business Insider) Excerpt: “There are any number of reasons why Aramco would go public, which range from encouraging investment in the Saudi stock market to bringing some limited transparency to a notoriously opaque company. But the biggest reason just might be revenue generation.”

Heavy Canadian Crude Falls to $19.81 per Barrel (Contra Corner) Excerpt: “A deepening oil market slump is adding fresh pain for producers of the world’s cheapest crude, raising the prospect that more production will be curtailed.”

Gloom Hangs Over China’s Economy Amid Market Turmoil (Wall Street Journal) Excerpt: “Everyone thinks this will be a very troubled year…”

Here’s How China’s Yuan Drives the Global Sell-Off (Market Watch) Excerpt: “The yuan is China’s currency, but it’s the world’s problem.”

Personal Economics and Household Finance

Why You Should Limit Car Loans to 42 Months (Clark Howard) Suggestion… Own your car. Maintain it properly. Drive it for as close to forever as you can! Spoiler Alert: “If your payments per month are too high to knock out the loan in 42 months, you’re buying more car than you can afford. Forget about those 60 month and 72 month loans that people love to do.”