U.S. stocks fell on Monday as a resurgent U.S. dollar took a toll on commodity prices and investors paused to gauge if the outlook for corporate profits justified the market’s recent run to 11-month highs.

Gold fell to its lowest in almost a week on Monday, weighed by a rallying dollar that dented the metal’s appeal to non-U.S. investors and record speculative positioning in the New York gold futures market.

Oil prices fell by almost 3.5 percent towards $69 a barrel on Monday as further signs of weak fuel demand raised expectations that prices may have raced ahead of the nascent economic recovery.

Impact of mortgage rates on Fed buying Calculated Risk

FDIC’s Bair says open bank aid should be blocked Marketwatch

The Hypocrisy of the Fed  Marketwatch

Geithner ends money market guarantee program Yahoo Finance

So Much for high frequency trading The Big Picture

Our trip to Paris served as a brief distraction from the “good news” chatter that MSM floods us with. “Global confidence index holds at record high as signs recession has ended,” reads Bloomberg. Yesterday, Chairman Ben indicated that the recession is over, sending stocks and commodities higher.

7 megatrends that effect your future Zero Hedge

Jim Rogers: US to have zombie capitalism for 15-20 years The Daily Crux

The negative trend in insider selling worsens The Pragmatic Capitalist

Yellen calls for a U shaped recovery Mish’s Global Economic Analysis

The housing tax credit debate Calculated Risk Blog

Stock buybacks fall to record lows The Daily Crux

Bailed out bank lending falls for sixth straight month Zero Hedge

Times of crisis Reuters

In the spirit of not suffering from confirmation bias, in today’s Notes we will try to make the bearish case against gold. So before you storm Notes HQ in Buenos Aires craving blood, hear us out. Many of our staff here love gold and have long term holdings.

It’s a difficult question to ponder as the state of the world economy is so fragile. Right now, GDP growth stems exclusively from the government’s stimulus package. But once Obama and his cronies are finished fixing the economy, what will the fuel the next leg of the recovery?

P&G cuts prices to adjust, but sees sales rising Yahoo Finance

China’s premier says stimulus to continue MarketWatch

Where will growth come from? The Big Picture

Golden eggs: Danger in precious metal stocks WSJ

China’s new lending quickens, money supply rises by record Bloomberg

Trade deficit increases in July Calculated Risk

Metal mania Yahoo Finance

5 reasons gold you shouldn’t buy gold Zero Hedge

Official gold reserves by country Wikipedia