The various state budget crises are increasing in severity. Here is the news from California, and Illinois. (Thanks to GG, for both links.)
Reader “Burrito Boy” forwarded this warning of darker days in Europe: Greece leads Europe’s winter of discontent
Michael H. suggested a piece by Professor Bainbridge: What, Me Worry? Credit Default Swaps on US Treasuries. Oh, don’t miss his advice at the end of the article: “Although sovereign defaults are hardly unknown, things would have to get incredibly bad for the US to default on Treasuries. And if they got that bad, you’d probably have been better off investing in a survivalist camp than CDSs.”
Items from The Economatrix:
Quantitative Easing May Have to Restart. (They’re talking about monetization, folks. Be ready for some serious inflation, in coming years.)
A Desperate FDIC Begs Americans to Open Savings Accounts During “America Saves” Week
Chart of the Day: Banks Continue to Pull the Rug Out From Under the Economy