St. George Agrees to Takeover; Chile’s Pension Funds go Global; Lights Out at LSE; KDB Warned Over Lehman; United Air’s Costly Misprint; Consumer Spending Cutback; Oil Traders Eye Ike; P&G Sells Noxzema

Claims that the worst of the financial crisis is over have been rubbished by ex-IMF Chief Economist , who yesterday warned that a major U.S. bank is likely to collapse within months.

Money Morning’s William Patalon III says dire warnings like this are becoming more frequent. And the slump in shares for Fannie Mae (FNM) and Freddie Mac (FRE) this week is generating more fear among investors.

William says the financial meltdown will keep the Fed from raising interest rates anytime soon. But at a time when inflation is accelerating, this will create more problems down the line…

The 29th Olympic Games opened today. They are expected to cost China a staggering $40 billion. 

Bill Patalon in Money Morning says the games are a reminder that every investor needs a China strategy. Despite the country’s benchmark Shanghai exchange being in “double bear” territory, China’s economy is white hot right now, and it’s expected to grow by double digits this year.

The bottom line, says Bill, is that ignoring China is ignoring the world’s second-most-important economy - not a way to profit in the long term. Consider the following facts:

U.S. Federal Reserve Chairman Ben S. Bernanke and his fellow central bank policymakers will be back in the spotlight this week as the group convenes for its monthly monetary-policy meeting.