Dollar’s rally is cut short…Major problems for loans still exist…Yen rallies on exporter repatriation…Kiwi gets whacked! And Now… Today’s Pfennig!

You wanna know what is going on? David Rosenberg explains…

GM to Sell Opel to Magna; U.S. Foreclosures Improve in August; Bank of England Holds Rates Steady; Emerging Market Stocks at Expensive Levels; U.K. Housing Prices Rise 0.8% in August; Turkey GDP Down 7% in 2Q; Suntory in Talks to Buy Drinkmaker Orangina.

Euro & yen add to gains…RBNZ disappoints…Foreclosures continue to stack up! BOE & BOC meet today…And Now… Today’s Pfennig!

Summer is over…and the rally may be over, too.

With vacation season ending in the Northern Hemisphere, we’ll start to see analysis rooted in experience and common sense driving stock prices. Through much of the summer, trading has been dominated by “quant” funds that are prone to “garbage in, garbage out” decision systems. You can see it in the tick-by-tick movements and in Level 2 quotes. These quant funds typically use backward-looking data on the U.S. economy to drive trading decisions, rather than assess how the outlook for the global economy has changed in the wake of last fall’s panic.

Pity the poor rich! Pity the poor! Pity us all!

Even as investors get more and more bullish about the outlook for the U.S. economy, the economy’s underlying foundation continues to erode.

Mortgage delinquencies move higher…Euro pushed higher by European data…Economist predicts Norway will be first to raise…Mexico to leave rates unchanged…And Now… Today’s Pfennig!

The dollar fell to $1.42 per euro yesterday. Many believe it is the Achilles Heel of the entire world financial system – including Warren Buffett.