This week is shaping up to be another active one on the bailout-and-financing front. First and foremost, Congress returns to work this week to consider a once-unthinkable proposal: Put up billions in taxpayer-backed loans so that Detroit’s “Big Three” can be saved. Expect a fight, however, as the bailout debate finally moves past banks to focus on General Motors Corp. (GM), Ford Motor Co. (F), and Chrysler Corp.

By all reasonable measures, we are already in a recession, says Shah Gilani. Deflation has become today’s number one threat. But massive government rescues mean another bout of inflation looms on the horizon. Shah says investors should look to short vulnerable stocks in 2009. But in 12-18 months, they should be prepared for a “generational opportunity” to make a fortune.

Retailers 3Q Earnings Dismal; Cisco Sees Small Biz Sales Growth; Blackstone Posts $502 million 3Q Loss; IEA Sees $100 Oil Average; Mattel Toying with Job Cuts; Direct TV Earnings Up; Fidelity Cuts 1,300 jobs; Jobless Claims Fall

Circuit City Stores Inc. (CC) will close 155, or 20%, of its 566 U.S. stores by Dec. 31 and slash its domestic workforce by about 17% as the fledging electronics retailer scrambles to conserve cash and reverse six consecutive quarters of falling sales.

US retailer Target Corp. (NYSE:TGT) is considering offloading $20 billion in real estate holdings. This will enable the company to focus on its core strategic operations, says Andrew Snyder. And that makes it easier for investors to analyse the business. Andrew expects Target’s stock to jump if this sale is given the go ahead.

Electronic Arts Ditches Take-Two; Nucor’s Positive Outlook; Best Buy Snaps up Napster; Target’s New Ballpark; Oil Hits Six-Month Low; Wilbur Ross Expects 1,000 U.S. Banks to Fail; Hewlett-Packard Slashes Payrolls

Money Morning’s William Patalon III says comments by Ben Bernanke at the end of the week show he continues to prioritise economic growth over inflation. This means no rate hikes in the near future. But despite falling commodity prices, William says the threat of stagflation is growing…

Target Misses the Mark; General Dynamics Broadens Horizons; Chavez Bounces Cemex; Manchester United Scores with Saudi Deal; Lacker Lobbies for Rate Hike; Carlyle Group Chair Steps Down; Hedge Fund Fraud Judgment; Quiznos Overseas Expansion

The big debate on “The Street,” (besides whether we’re really in a bear market or not) is will the next move be bullish or bearish? And my answer is “Yes, the next move will be bullish and bearish.” (I know what you’re thinking: “Great, David…that’s a lot of help!”)

When U.S. Department of Energy analysts told you more than a month ago that gasoline prices would peak at about $4 a gallon around Memorial Day, we told you they were wrong. Gas prices, we said, were destined to head much, much higher.