Underlying the credit crisis gripping the U.S. and world economies is a crisis of confidence. Blame has been laid at the feet of the U.S. Federal Reserve, and an investment bankers’ brew of toxic financial products. Ultimately, however, it was the supposedly trustworthy rating agencies that got everyone to drink the poisoned Kool-Aid.

Best Buy Profit Falls 77%; Goldman Sachs Posts $2.12 Billion Loss; New Permits and Starts at Record Low; Brazil Retail Rises 10.1%; Berkshire Buys NC Real Estate Brokerage; Crude Slides in Spite of OPEC

EDF Scooping Constellation; Research in Motion Posts Tough 3Q; Legg Mason’s Miller Calls Market Bottom; Cyber Monday Sales Strong; Crude Stocks Drop; New Zealand Fights Recession

Addison Wiggin and Kate Incontrera look at the implications of America’s large and persistent trade deficit. The country is dependent on foreign products for its energy, food and leisure needs. Simply put: America is consuming more than it produces.  And as this imbalance continues to grow, the long-term risks to the economy become more severe.

Warren Buffett is shopping for railroad stocks again. The ‘Oracle of Omaha’ increased his stake in Burlington Northern (NYSE:BNI) to almost 20% last month. Fuel efficiency and road congestion are two key factors supporting a bullish outlook for the railroad industry, says Jason Simpkins.

The markets are truly scary right now. Global credit has all but frozen. Stocks around the world are tumbling. And to make matters worse, governments and central banks are trying to ‘fix’ the problem with massive interventions.

But for investors with “a clear head and a keen eye for opportunity” boldness can pay big dividends.

Taipan Daily editor Justice Litle says there are five proven strategies for building wealth… regardless of whether the bulls or the bears are in charge. 

The economic releases now and for the immediate future will be weak. “that’s a given, says William Patalon III in Money Morning. Therefore, investors should give them a passing glance, evaluate the consequences and potential remedies, and move on. In fact, the bigger picture should focus on how to correct these assorted problems.

General Electric Co. (GE) said yesterday (Wednesday) that it will sell “at least” $12 billion in common shares to investors, and another $3 billion in preferred stock to Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B), making GE the latest U.S. giant that’s been forced to raise capital in recent weeks.

In a move that underscores the potential of China’s auto market – as well as the viability of so-called “green” technology – investing guru Warren Buffett’s MidAmerican Energy Holding Co. will pay roughly $230 million for a 10% stake in BYD Co. Ltd., a Chinese producer of both cars and specialized batteries.

Even with a congressional compromise having been reached, the $700 billion credit-crisis bailout plan will remain the headline story this week as analysts monitor whether the deal is viewed as a good one, or is ultimately regarded as a flawed deal that can only do damage to the U.S. economy over the long haul.