Minnesota Nice

A MarketWatch study of best metro centers for business ranks Minneapolis #1. Of course, MarketWatch has just figured out something Gopher Girl has always known.

"Minneapolis-St. Paul is where it's at when it comes to business, much more so than any other of the nation's major urban areas. The Twin Cities ranked at the top of a MarketWatch study on the nation's best metro centers for business, winning by a wide margin."

We'll Shop Our Way Out of This Mess!

This cannot be susainable:

Sept. 25 (Bloomberg) -- Consumer confidence fell more than forecast in September to the lowest level in almost two years, as declining home values, a deteriorating labor market and tougher borrowing standards took a toll on Americans' spirits. The Conference Board's index of confidence dropped to 99.8 from a revised 105.6 in August and workers were less optimistic about job prospects, the New York-based group said today. The report raises concern that the prolonged housing recession and tougher credit standards will put a brake on consumer spending, which accounts for more than two-thirds of the economy.

Minnesota State Bird?

Another reason to hate (and fear) mosquitoes:

Almost 270 people in Italy's province of Ravenna may have been infected with chikungunya, a virus that causes fever, rash and joint pain, since it arrived with a tourist three months ago. The outbreak was caused by the same viral strain that sickened about 235,000 people on Reunion island in the Indian Ocean last year, says an Italian virologist investigating the episode.

Now Italy is threatened by a contagious illness that may also spread elsewhere in Europe and North America the same way it got to Ravenna -- through an infected traveler. There were 2.1 billion airplane passengers last year, driving the spread of new diseases that are emerging at ``an unprecedented rate,'' the World Health Organization said last month.

A run on the bank in England

The Wall Street Journal describes a literal run on the bank today in England:

"Early Friday, Northern Rock customers queued outside at least one branch to withdraw their savings after the mortgage lender was forced to tap the Bank of England for emergency funds. Some savers had been concerned weeks ago about the possible fallout from the subprime lending crisis on the U.K. lender. In Kingston, England, a line began to form more than an hour before the Castle Street branch opened as concerns about the institution's liquidity unnerved savers. A staff meeting appeared to be taking place before doors were unlocked. Around 9:00 local time, the line outside contained about 30 people, but swelled to more than 70 within half an hour. Almost all were over 50 years old and retired. All planned to withdraw their cash."

European Central Bank Steps in as Lender of Last Resort….Again

As reported by Financial Times:

The European Central Bank on Wednesday loaned commercial banks €75bn ($104bn) for three months, a sign that institutions in the money market remain wary of lending to each other for periods of more than a week.

The Frankfurt-based central bank said 140 banks had applied for €139bn in central bank deposits, agreeing to pay an average interest rate of 4.52 per cent as compared with current interbank prices of 4.75 per cent.

The size of the refinancing operation shows how worried commercial banks remain that the crisis in the US mortgage market could yet render fellow institutions in the money market unable to repay loans.

It chimes with remarks by US Treasury secretary Henry Paulson that, even as short-term lending normalises, the crisis of confidence in the credit markets could last longer than any recent financial crises.

Category 5 Stink Bomb of Bad Mortgages

Dear Readers, I thought you might enjoy this cheery news, as reported in the Financial Times:

“Washington Mutual, the largest US savings and loan company, said on Monday it was increasing its reserves for loan losses to as much as $2.2bn because of a “near-perfect storm” in the mortgage markets.”

So much for a super-cycle.