Metzenbaum Scissors

LIBOR Shows Worst Is Yet to Come for Credit Markets

Great primer for those not familiar with OIS and LIBOR. Recall when no one knew what CDO meant? Watch for LIBOR and OIS on the Christmas cocktail parties. In Peoria.

As for your first choice of investment, Treasuries. Sure, they appear safe, with a negative return. Personally, I have loaded up on Canadian Gov't bonds. I don't feel much comfort in the long term trend of the US$.

U.S. Records Another Huge Current Account Deficit

Rabble,
China is a polluted prison filled with illiterate peasants trading their miserable agrarian subsistence for a slightly less miserable (but still Dickensian) 'life' on an assembly line on the coast.
PJ O'Rourke paraphrase on Purchasing Power Parity: saying the Chinese quality of life is in any way gaining on ours is like saying you can have a better house in a crime-ridden, crack district. Yes, it's a better house, but most folks would not choose it.

I think you over-estimate internal Chinese demand for 99% of their population. The rich 1% want to buy anything but tainted food, counterfeit brake pads, soy sauce made from hair, etc,

U.S. Records Another Huge Current Account Deficit

If your dumb-a** leaders insisted the Chinese buy a dollar of US goods for every dollar they sell here, and all their containers were inspected, it would accomplish two things: balanced trade deficit and a whole lot less drugs on US streets.
China needs America; America can get on without China... so why the kowtowing?

Asset Class Correlations

More Lep in more places.

What passes for valid numerical analysis is appalling.