More economic issues

After The Money's Gone

By Paul Krugman

On Wednesday, the U.S. Federal Reserve announced plans to lend $40 billion to banks. By my count, it's the fourth high-profile attempt to rescue the financial system since things started falling apart about five months ago. Maybe this one will do the trick, but I wouldn't count on it. Continue

Adding to the List of Worries, Signs That Inflation Is Bubbling Up : Economists and central bankers have worried for months that soaring food and energy costs could lead to higher inflation, but investors had shrugged off those concerns, preferring to focus on the slowdown in growth.

U.S. stocks tumble on rise in consumer prices: U.S. stocks fell Friday, with the major indexes slammed by their worst weekly drop in five weeks, as rising inflation fed investors' fears about the economy, while reducing the odds of another Federal Reserve rate cut next month.

China's Investment House: Housing prices are falling and so are US dollars. This would have happened sooner, faster and farther were it not for the large and growing demand for US housing and dollars coming from the People's Republic of China.

US loses status as top World Bank donor to Britain: Losing its position as the top donor could weaken Washington's influence over the World Bank, which is the largest provider of "development assistance" to poor countries, and over the policies that decide how its cash is spent.

World Abandoning the US Dollar as International Currency For Trade : The foreign exchange markets are not solely about exchange rates. They are about values, smooth flowing of international trade, about trust and reliability. The sight of the $ falling over a long period of time, with bounces and recoveries that don't change the downward trend is far more than simply a drop in value!

Countrywide reports doubling of foreclosures: Countrywide Financial said on Thursday foreclosures had doubled in November, while late payments continued to rise amid the US subprime housing crisis.

Citigroup Rescues SIVs With $58 Billion Debt Bailout : Citigroup Inc. will take over seven troubled investment funds and assume $58 billion of debt to avoid forced asset sales that would further erode confidence in capital markets. Moody's Investors Service lowered the bank's credit ratings.