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The drop in oil prices of almost $24 per barrel has started to shift much of the conversation. Instead of talking about unlimited demand and shrinking supply, people are returning to economic fundamentals, and realizing, like real estate, that nothing goes straight up forever.

As expected the Federal Reserve kept the Federal Funds rate at 2%. The statement below continues to reflect their uncertainty on which way the economy is going - inflation or recession. Expect the Fed to do nothing until the wind breaks one way or the other.

The demand for corporate debt has plunged, forcing companies who want to raise debt money to either borrow from a bank or offer higher rates and other perks to potential investors.

Here's an example of an investment expert getting way ahead of himself. Mark Mobius, who oversees about $40 billion in emerging- market stocks as executive chairman at Templeton Asset Management Ltd. in Singapore thinks falling oil prices make it the right time for the Fed to drop rates.

Like all bubbles, this one has been led by cries of "its different this time." Is it?

It's not just subprime mortgages which are in trouble. Alt A mortgages brought down Indymac and a bigger wave of Prime mortgage defaults threatens to wash over us soon.

With recessionary forces fighting against inflationary forces, central bankers in the US and Europe don't know what to do, so they aren't doing anything.

PASADENA, Calif., Aug 01, 2008 (BUSINESS WIRE) -- On Friday, August 1, 2008, IndyMac Bancorp, the former holding company of IndyMac Bank filed for bankruptcy protection under the U.S. Bankruptcy Code (Title 11, Chapter 7 U.S.C). This action has no effect on the operations of IndyMac Federal Bank, FSB, which came into existence on July 11, 2008, when IndyMac Bank was removed from its holding company, IndyMac Bancorp, and IndyMac Federal Bank was placed into conservatorship by the Federal Deposit Insurance Corporation (FDIC). Other than a similarity of name, IndyMac Federal Bank has no relationship, nor does it share any employees, with IndyMac Bancorp.

Ever wonder why gas prices seem to rocket up when oil prices rise, sometimes rising a few cents in a day, but then take forever to come back down? A theory called Rockets and Feathers explains why and shows how you can help bring gas prices down faster.

The bureau of economic analysis released its preliminary GDP numbers today and they looked pretty good. 1.9% quarterly growth is not a recession. But a closer look at the numbers shows reason for concern.

WaMu now offers an online savings account with 4% APY.

Ascencia Bank took the #1 spot on the BestCashCow 6 month CD rate tables with a rate of 4.07% APY.

Lest we all think that we were out of the woods with the credit crisis, the Fed announced today that it was extending several pieces of the assistance it has provided to investment banks.

Everyone wondered at what gas price we (American consumers) would stop driving. The answer is in - $4.00/gallon. Car usage has dropped for the first time in over 20 years and that softening in demand has started a decline in oil prices.

Probably not. This capitulation sale may be the end of the fall for Merrill, but it has real implications for the rest of the banking industry.