"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

Yesterday, Dow Industrials advanced 96.28 points on better than expected y/o/y quarterly earnings reports. Eaton Corporation beat expectations and raised its full-year forecast .

Among the sectors were;

U.S. Basic Materials Average + 1.72%
Dow Jones Utility Average + 1.48%
Securities Broker/Dealer Index + 1.10%
S&P Retail Index rose + 1.12%
NYSE Arca Oil Index + 1.08%
Philadelphia Oil Service Index + 1.57%
Philadelphia Semiconductor Index +1%

Today, Caterpillar rallied on better-than-expected earnings, but cold water was poured on the rally after housing starts for September came in weak, and building permits declined. The National Association of Home-builders survey showed that the housing index declined to 18 in October from 19 in September. Economists had estimated a reading of 20 for October.

The Rest of the Story

Clearly, many U.S. states are in deep financial trouble. Some is due to poor money management, and some is due to corruption. Like Warren Buffett said many years ago, "when the tide goes out, you'll find out who's been swimming naked." Well apparently, many state officials who were trusted by the public were not very honest. Take this case in Birmingham, Alabama- Article.

In the south, the good ole boy system is very prevalent, in other areas of the country, it's just corruption. Here is a funny scene from the movie "My Cousin Vinny" on how northerners perceive southern corruption- Video.

Several states such as California, Nevada, and Arizona are also facing severe budget issues.