Well, here’s a quick lowdown on financial news.Foreclosures in the US rise 9% June to July, and 93% YoY. House prices are no longer rising, so people cannot sell to get out from under.

This has put a more general squeeze on credit, so companies are increasingly unable to get credit for expansion or even normal operations. Commercial paper, and the bond markets are moving less than George Bush after eating a pretzel, with results like this:

• Hertz isl struggling to get low-rate loans for rental-fleet purchases.
• Deere is “putting the brakes” on production of construction vehicles.
• Countrywide Financial on Thursday had to tap its entire $11.3 billion emergency funding line.
• Home Depot is rethinking a plan to borrow money for a stock buyback, and the debt shutdown may stop the sale of its wholesale supply business.
• Media giant Quebecor canceled a $750 million debt offering.

The money quote here is, “The market for investment-grade bonds — or money lent to companies with great credit — has virtually stopped for the past few weeks“.