GREEN SHOOTS? Gordon Smith says the money is starting to flow. “We have been talking about ‘frozen’ capital markets for so long, it may be hard to remember a time when money flowed freely, but that time may not be far way.” Hmm. Well, let’s hope.

UPDATE: Brown Shoots: Residential construction drops 3.1% in July. Plus this commentary: “Once again, the core of the economic malaise is unemployment. The scarcity of jobs hits all segments of a consumer-driven economy, and as long as the US government keeps sucking up capital to expand regulation, businesses will hoard cash instead of investing in expansion and job-creating activities. The year of stimulus has passed without healing the economy at all, and instead we’re looking at a Cash for Clunkers hangover, only applied to the entire economy — with taxpayers on the hook for the tab.”