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