Your Daily Economic Update

First, you have calculated risk reporting that the discount rate spread has jumped to near record levels:

This is the spread between high and low quality short term (30 days) commercial paper. Even the bad stuff is supposed to be pretty much a sure thing, and the spread between the two is big, indicating a very high fear level.

It's worse than when the big sh$@pile started to collapse in August.

It's worse than when the Twin Towers DID collapse on 911.

People are scared, and getting people UNscared will be a very difficult thing.

Then there is the fact that the Producer Price Index took the biggest one-month jump in 34 years, 3.2% in a month, or 45% a year.

The economists will tell you to look at the core rate, but I live in a non core world, as do you.

Florida says $9B can't be pulled from fund -- OrlandoSentinel.com

Remember when I wrote about a Florida money market fund for local governments that froze its accounts because of a run on the account due to its investments in the big sh#$pile?

They are finally releasing some funds to the local governments, but only ¼ of what was deposited.

Citigroup to lay off as many as 32,000 employees.