It takes more than a globally competitive economy to have a sound banking system. For the third straight year, the United States finds itself at the top of the Global Competitiveness Index (GCI), published by the World Economic Forum (WEF) as part of its annual Global Competitiveness Report.

Good day… And a Terrific Tuesday to you! Well… Folks… The wheels, what was left of them, are really coming off this economy. It’s a sad sight to see, but it’s happening nonetheless, and there’s no bailout, stimulus check, mortgage bill, truck loads of money supply, or whatever, that’s going to stop this recession bus.. Memo to Paulson and Bernanke… Don’t throw yourself under this recession bus…

These are worrying times. Not only for investors, but also for anyone with their savings in US banks. Already, some of the biggest names in banking have gone belly up. How do you know whether you bank is safe or not? Keith Fitz-Gerald in Money Morning says there are three steps you can take to make sure your bank is safe.

Wall Street is still in chaos. Yesterday, regulators seized America’s biggest savings and loan bank WaMu (NYSE:WM) and sold it to JPMorgan Chase (NYSE:JPM). It was the most spectacular bank failure in US history.

The crisis, and the bungled attempts of the government to ‘fix’ it, is setting up some great contrarian investment plays.

“All it takes to make money on Wall Street these days is a ‘for sale’ sign,” says Andrew Snyder. “Companies in every industry are hurting from the financial crisis. Their only way out is to hope a buyer comes along. The action is creating a lot of great profit potential for investors.”

The FDIC is beefing up its staff in anticipation of more bank failures, reports The Dallas Morning News today. This doesn’t bode well for the insurer, says in David Newman in The Sovereign Society. The problem is the FDIC is running our of cash to fulfill its obligation to insure deposits…

eBay’s Copy Cat Move; Mortgage Applications at New Low; FDIC Extends Help to IndyMac Customers; Oil’s Wild Ride; Suntech Stock Shines; BJ’s Stock Slump; HP Beats Expectations; TVA Hikes Rates 20%

Whiskey and Gunpowder editor Dan Amoss says the recent rally in financial stocks has more to do with short covering than regular buying.

Weak institutions were shorted so much that a bounce was inevitable.

Despite an SEC clampdown on shorting, Dan says legitimate shorting is vital for the stock market and is not to blame for the stategic mistakes of U.S. banks.

For those still looking for new short ideas in the sector, Dan says Allied Capital (NYSE:ALD) is a good place to start…

Is your money safe if your bank goes belly up? The Federal Desposit Insurance Corporation (FDIC) insures you in case the worst should happen… but only up to $100,000. So, what happens if your account exceeds this limit? The Sovereign Society’s Erika Nolan says she has discovered “a masterful solution to protect your savings” even if your personal or business account is worth up to $50 million. More from Erika…

U.S. Federal Reserve Chairman Ben S. Bernanke and his fellow central bank policymakers will be back in the spotlight this week as the group convenes for its monthly monetary-policy meeting.

If you have followed the market over the past year, you know what’s been happening if you’ve been thinking about buying bank stocks.