In our interconnected world, the most important news for the USA was in Europe where the world economy once more was at the abyss:
1. European leaders "create" a $1.4 trillion bailout fund to prevent an Italian, Spanish or Greek default in a near desperate attempt to save the Euro. Just one detail left to figure out: From where will the money come?
2. Europe goes with tin cup extended to China and Middle East looking for money to capitalize the $1.4 trillion bailout fund, a truly historic moment that underlines the wealth created by oil and the rise of Chinese manufacturing and exports. World power shifts to those with money.
3. Private European banks "voluntarily accept" a 50% loss on all Greek debt. Greece must pay back all debt owed to the International Monetary Fund and European Central Bank.
4. The Bottom Line in Europe is that for another few weeks a monetary collapse has been averted that would have triggered another collapse in global consumer demand, more deflationary pressure, and another round of massive job loss. But will it work? Nobody knows.
5. Meanwhile in the USA, GDP grew a higher than expected 2.5% in the third quarter. But incomes declined a worrying 1.7%, and a decline in the savings rate financed consumer demand expansion. Not clear at all that the growth is sustainable.
6. On the field a great weekend for Pennsylvanaia: Pittsburgh goes to 6-2, with a brutal game against the Ravens next; the Eagles dismantle the Cowboys to reach 3-4; and PSU remarkably sits at 8-1, with Nebraska, Ohio State, and Wisconsin left.
7. Off the field, Penn State ranks number 1 in Fulbright Scholars. Congratulations!