Home Prices Record Plunge; U.S. Trade Gap Grows; Social Security Funds Running Out Early; Citigroup Lends Most TARP Money; Big Shipper Maersk Posts Loss; EU To Do Bank Stress Tests

If it’s good enough for Wal-Mart… Looks like the discounting model pioneered by Wal-Mart Stores Inc. (WMT), the Bentonville, Ark.-based retailing giant, will make its way to some rather unlikely high-end retailers: Barney’s New York Inc. and Neiman Marcus Inc. have announced significant price reductions (up to 75%) over the next few days to avoid a disastrous holiday shopping season.

The Bernie Madoff scandal has investors newly terrified of money manager fraud. But fraud is actually not all that hard to avoid – the real lesson goes deeper than that. “Madoff with ya money.”

Riddle me this: When is it good news when an analyst slashes his price target for a stock by 55%? Answer: When that “reduced” target price still represents a 59% gain. That’s precisely the scenario facing Companhia Vale do Rio Doce (ADR: RIO), the world’s biggest iron-ore producer.

Latin American markets were hit hard as the credit crisis spread to emerging markets. But Sara Nunnally says Spanish banks operating in the region are recording strong profits. And they are not heavily exposed to subprime debt. Banco Santander (NYSE:STD) and BBVA Group (NYSE:BBV) are at “rock-bottom” prices right now. Sara says that makes them a strong, long-term investment option.

The Treasury’s plan to inject $250 billion in capital directly into US banks is underway. But William Patalon III says some of these taxpayer funds will be used by big banks to acquire junior competitors. This means the increase in lending that the plan is supposed to spark will be modest at best. And less competition in the banking sector could mean a rise in fees going forward.

Horacio Marquez says the credit crisis is giving investors another chance to profit from Brazil’s long-term success story. The country is rich in natural resources, has a solid banking system, and a strong economic outlook. He recommends buying the iShares MSCI Brazil Index (NYSE:EWZ) in increasing increments over the coming 8 weeks.

The U.K. government yesterday (Wednesday) announced its own banking bailout package with an $87 billion (50 billion pound) recapitalization plan for the ailing British financial sector.

Europe is rapidly following the US into financial oblivion. The eurozone’s economic cycle some six to nine months behind the US. This means the the short-term future looks bleak on the other side of the Atlantic.

But Eric Roseman says Spain’s solid regulatory system should protect its banks from the worst of the storm. This is despite a major slump in real estate that is wreaking havoc in the wider economy.

This makes the country’s biggest bank, Banco Santander (NYSE:STD), an interesting investment option…

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