Goldman Sachs Would Have Collapsed If Not For Henry Paulson.

Comes word this morning that the China State Construction Engineering company has gone public. It’s the biggest public offering – at $7.3 billion – in more than a year. It’s also China’s biggest homebuilder. And as soon as the shares hit the market yesterday they soared… closing 56% higher than the IPO price. At that price, it trades at about 40 times forecast 2009 earnings.

China turns it up another notch… now “concerned about the security” of U.S. investments… Chris Mayer tells the “story of today’s economy”… Mainstream celebrates latest home price index… our perceptive on the housing “recovery”… Three market sectors currently detached from reality… The truth emerges… why Ben Bernanke really bailed out Wall Street…

The depression deepens. “These are not layoffs… they’re permanent job losses,” said Barry Rithotlz this morning. “These people are not going back to work anytime soon.”

In the currency market, the dollar rose slightly against the euro. Late Tuesday, the euro was trading at $1.4199 vs. $1.4226 on Monday.

Bernanke sticks to the script…  Pound sterling comes under pressure…  China starts shopping for assets…  BRIC MarketSafe lights up the phones… And Now… Today’s Pfennig!

US leading indicators push higher…  Labor department admits errors…  Ben Bernanke heads to the hill…  PIMCO suggests buying emerging markets… And Now… Today’s Pfennig!

“Just how can the Fed credibly promise to be irresponsible…?”  Here’s a thought—that tiny handful of investors and analysts warning how Fed policy risks hyper-inflation are in fact doing the central bank’s work.

Bankruptcies, Depressions and Mark Stanford with his Argentine beauty.

China has stopped stockpiling metals, according to reports in the Chinese media. Will this put the cap on the recent strength in base metals prices? The AFP reports that, “China has been building its inventories of metals, including 235,000 tonnes of copper, over recent months, Caijing magazine reported on its website over the weekend, citing Yu Dongming, an official with the state economic planner.”