Financial and economic news

Wal-mart: Scenes from the economic front lines. They report that shoppers are using less credit and spikes of purchases occur around pay periods, including purchases of baby formula.

Fed offers $540bn to prop up money funds
. This makes me a teensy bit nervous. Like, are they assuming more money market funds will break the buck?

42% of California Bay Area sales are foreclosures. The Bay Area was supposed to be the bright spot of California real estate too. Not any more.

Iceland gets $6 billion IMF-Led bailout

Pakistan needs $10 billion to avoid default

The LIBOR is dropping, and this is good. But…

But bear in mind that this just stops the credit markets from collapsing; the real economy is still rushing downhill.