Not a fan of socialism? Me either. But, if the federal government has to backstop free market excesses with taxpayer dollars, how will it eventually unravel the veil, or tarp of intervention? Or should it? The answers are about to unfold before our eyes.

Hate thy neighbor? Giveth his children money; that will fix them all. Few things are as costly as free money.

Investors are “bloodied and confused,” says Warren Buffett, “much as though they were small birds that had strayed into a badminton game…”

Berkshire’s Armor Cracks; JPMorgan Bags $5 Billion Selling Deriviates; Recordati Proposes Increased Divided; China May Double Stimulus This Week; Homes Sales Continue to Break Down

What happens to the relationship between the small-cap investor and the unemployed consumer during a recession? Greg Gunner of Whiskey and Gunpowder has advice, buy low and sell high.

MasterCard Posts 4Q Profit; Buffet’s Berkshire Investing in Swiss Re; Rogers Staying Out of Russia; Ford in Volvo Talks with Geely Auto; Louis Vuitton Misses on Earnings; Brown Refuses to Ban Bonuses; Mortgage Rates Jump; Retail Trade Group Wants Tax Holidays

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.