Details to follow later today

That may change soon given a global slowdown and their sensitivity to inflation.

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As China slows the world understands how much they contribute to global growth.

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The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops—the local level, where the likes of San Jose mayor Chuck Reed and Vallejo fire chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.

Read the rest here.

Pickups and SUVs helped accelerate U.S. auto sales in September, although carmakers remain concerned that worries about the economy could dampen demand later this fall.

General Motor Co.’s sales rose 20 percent compared with last September, led by a 34-percent rise in full-size pickups and SUV sales. Chrysler Group LLC’s overall sales rose 27 percent.

The growth built on a healthy performance in August, when new models, cheaper financing and pent-up demand lifted the industry after several disappointing months.

September truck sales benefited from falling gas prices, a need to replace aging fleets, and promotions to clear out older models from showrooms.

Sales promotions were especially helpful, according to Jeff Schuster, executive director of global forecasting for J.D. Power and Associates. GM, for example, was offering zero-percent financing and $1,000 cash on the 2011 Chevrolet Silverado 1500 pickup. Sales of the Silverado, one of America’s best-selling vehicles, rose 36 percent. Ram pickup sales were especially strong at Chrysler.

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Cheap can always get cheaper in a crisis….

Nice summation here if your not up to date….

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Dallas Fed president feels inflation will drop 30% closer to 2%…

Expectations are getting worse, but the one bright spot is it will be shallow. Avoiding painful is another matter if we fall into recession.

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They do not predict a double dip scenario, but see growth slowing for the whole globe.

Fitch may have to downgrade India is their finances deteriorate further.

Also prepare for the havoc it will inflict upon the banking system. Greece has 8 days of money left before a default.

It appears that the people may override the IMF, EU, and their government.

This piece shows the real story

Also here is some decent commentary on the gravity of the sovereign debt crisis

Sometimes it is good to get a wide perspective; as such people from around the country have written BI commenting on their local economy.

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The weaker euro is having an effect.

FRANKFURT, Germany (AP) – Inflation jumped to a startling 3.0 percent in September in the 17 countries that use the euro, a surprise increase that makes it less likely the European Central Bank will cut interest rates next week to head off a possible recession.

The rate reported Friday from the European Union’s statistics agency was the highest since October 2008 and represented a big increase from August’s 2.5 percent. The scale of the rise was unexpected.

The ECB, the chief monetary authority for the euro countries, has come under pressure to cut interest rates soon to ward off mounting signs of recession in the eurozone economy. A waning global recovery and market turmoil from Europe’s debt crisis are starting to weigh on growth.

Leading economic indicators have been falling to the point where some predict a downturn is imminent, after a weak 0.2 percent growth figure for the second quarter.

Separate figures Friday from the statistics office showed unemployment in the eurozone stuck at 10 percent in August.

A few economists have predicted a cut next week when the ECB’s rate-setting council meets in Berlin. But the council’s 23 members may want to see evidence that inflation is not a threat before they cut. September’s rate, which is well above the ECB’s mandate to keep inflation just below 2 percent, could mean a cut that soon is less likely.

“The latest eurozone inflation and unemployment numbers would appear to reduce the chance of an imminent ECB rate cut,” said Ben May, European economist at Capital Economics.

Tough questions answered 

So let’s clean house

Retool and educate America….forget liquefying the banks 

How about a soft landing that ends up in a hard bounce ?

Soft landing