Stocks stage huge rally, but will it hold? Key levels to watch, and some historic perspective… Libor continues to ease; famous Wall Street CEO explains why credit still isn’t flowing… John Williams on the “true cost” of the U.S. financial crisis, with charts to prove it… Byron King with an “exploding” foreign resource market…. Plus, a stinging critique of I.O.U.S.A., and one thing you must do before voting Nov. 4.

U.S. stocks futures fell this morning despite yesterday’s barnstormer rally and heavy hints of a further rate cut by the Fed. “S&P 500 futures dropped 21 points to 917.70 and Nasdaq 100 futures fell 32.5 points to 1,275.50. Dow industrial futures dropped 200 points to 8,889.00,” according to MarketWatch.

Carry Trade Depth…  RBA intervenes…  Oil weighs on the loonie… And Now… Today’s Pfennig!

It’s panic time for U.S. legislators, regulators, banks and lenders. More than $24 billion worth of adjustable-rate mortgages (ARMs) are expected to “re-set” to higher interest rates in November – boosting the likelihood of further home foreclosures.

Credit fears ease…  Chuck’s thoughts from the road… India cuts rates… China growth slows, but is still 9%…
And Now… Today’s Pfennig!

Swiss banking giant UBS AG (ADR: UBS) succumbed to government intervention yesterday (Thursday) and the country’s other banking powerhouse, Credit Suisse Group AG (ADR: CS) announced it would raise fresh capital from private shareholders after rebuffing central bank assistance.

Overseas markets surged early Tuesday as government-backed bank-bailout plans in the United States, Europe and Japan persuaded investors to jump back into stocks.

How will we know the credit crisis and banking fiasco are truly over? We won’t.

So far, the Fed’s magic is working: Sub-prime is leaving primetime.

Life’s about to get much tougher…for all of us…It’s that R-word again. Loose talk of a ‘recession’ has been bandied about for some time, particularly amongst those of us who keep a keen eye on what’s happening in both the money markets and the high street.