The morning rally in gold has faded. The market is going downhill in a hurry. Whatever bounce associated with the election seems to be fading.Barack Obama's Yuan Calls May Place U.S. on Collision Course With China Barack Obama's calls for changes in China's yuan policy may put the president-elect on a collision course with the U.S.'s second-largest trade partner, which is holding the currency stable to support its export-led economy.Euro Falls Against Dollar After ECB Cuts Rate to Lowest Level in Two Years The euro fell against the dollar, the yen and the pound after European Central Bank President Jean- Claude Trichet said the economy ``weakened significantly'' and the International Monetary Fund cut growth forecasts for the region.Oil Falls, Tracking Equity Prices, on Concern Slowdown Is Cutting Demand Crude oil fell to an 18-month low, following equities, on signs that fuel demand will contract as ...

Like a boxer who has a habit of dropping his hands, America finally caught one on the chin. The U.S. economy is flat on its back, and the financial markets are leaning down into its face yelling out a 10-count. But the U.S. economy isn’t “out for the count” yet. It will struggle back to its feet. But if the economy hopes to stay on its feet, it will have to devise new tactics. The old, sloppy tactics of credit-financed consumption won’t work anymore.

The biggest change in the American economy over the last few decades has been the transition from making things to making loans. We Americans abandoned the manufacturing industries that once powered our economy and devoted ourselves to merely financial activities. We became experts in “financial origami.” Precisely when and why this happened will be something for historians to debate. But sometime in the 1990s, the percentage of

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