The U.S. trade deficit expanded at its fastest pace in more than ten years in July, accelerated by rising oil prices and increased demand for auto parts and industrial supplies.

The U.S. government is starting to see profits from the $750 billion Troubled Asset Relief Program (TARP), started last year to thwart the financial crisis.

Japan Election Rout Shakes Shares; Shanghai Composite Falls Nearly 7%; Walt Disney Adding Marvel to its Roster; Baker Hughes Buys Rival BJ Services; PetroChina Gaining Athabasca Tar Sand Control; Petrobras Wants 30% Stake in Brazil Reserve Wells; India’s Economy Grows 6.1%; JPMorgan: China-Taiwan Interested in Mutual Opportunities; Funds Dumping U.S. Consumer Stocks

After earning hefty profits on its commodities trading for nearly 18 years, heavyweight trader Goldman Sachs Group Inc. (NYSE: GS) now finds itself on the hot seat, defending this crucial source of revenue. And while that may not be good for Goldman, it’s also bad for investors.  Let me explain…

Today’s global stock sell-off really started on Friday, when the U.S. suffered its worst bank failure of 2009. Alabama-based Colonial Bank gasped its last breath late Friday. With roughly $25 billion in assets, it was the biggest bank failure since Washington Mutual back in September.

Overdraft fees, which a large number of U.S. banks and credit unions relied on to turn a profit in 2008, are under a great deal of fire from consumers and Washington alike.

At least something good has come out of the economic crisis; it blew off the purple robes that clothed economists and exposed their naked flanks. Still, they don’t deserve the beating they’re getting in the press – with snide remarks and sarcastic comments; they deserve better. A beating with sticks!

 Goldman Sachs Would Have Collapsed If Not For Henry Paulson.

The future cometh…Cash for bankers! Cash for Detroit’s clunkers! From one scam to the next…But first, let us turn to the latest market update.