Weekend Reading: Talking Stagflation

Welcome to another edition of Weekend Reading. First, a look back at the week that just finished, then a look forward to the week ahead, and, finally, a summary of articles and papers worth reading.

It was a crummy week. Really, really crummy. The Dow slid 3.4%, the S&P 500 fell 2.8% and the Nasdaq Composite lost 1.9%. Things were fairly dodgy all week, but the bottom really fell out on Friday with weak economic data, and a record-setting 2-day oil advance to $139. Ouch, ouch and ouch.

Looking forward to the week ahead, stagflation is the word on everyone's lips. High and increasing prices, plus weak economic growth, is a condition investors hoped to have left behind in the 1970s. Back then, a combination of high inflation, runaway oil prices and weak economic growth led to interest rates hitting 21% and the Dow standing still for four years.

Turning to economic indicators, inflation worries will have everyone looking at the consumer price index, which is scheduled for release Friday. Investors will also give oodles of scrutiny to the Federal Reserve's Beige Book of economic conditions, due out Wednesday.

Turning to earnings, all eyes are on Lehman Brothers(LEH Quote - Cramer on LEH - Stock Picks). The much worried-over investment bank is thought to be considering releasing earnings next week, which would be a week early. If investors are disappointed, it could precipitate some nasty trading.

Lastly, here are some articles and papers worth reading:

Editor's note: To access some of these stories, registration or a subscription may be required. Please check the individual links for the site's policy.

• Oil-price supernova spurs search for alternatives. (Reuters)
• Time to put investment banking back in its box. (Bloomberg)
• Barron's features interview with Goldman Sachs oil analyst Murti and picks Alcoa(AA Quote - Cramer on AA - Stock Picks) and biofuels. (Barrons)
• Water-Starved California Slows Development. (The New York Times)
• Food Allergies Trigger Multibillion-Dollar Specialty Market. (The Washington Post)
• Herd Behavior in Financial Markets: An Experiment with Financial Market Professionals. (IMF)
• Cars in Russia: Crisis? What oil crisis? (The Economist)
• Green dreams at General Motors(GM Quote - Cramer on GM - Stock Picks). (Globe and Mail)
• Russia Takes Critical Tone on Economy. (The New York Times)
• Economy: Why It's Worse Than You Think. (Newsweek)
• Brokerage results to show crisis far from over. (Reuters)
• G8 energy ministers look inward on oil. (Reuters)
• BRICs helped by Western finance crisis. (Reuters)
• What's Steve Jobs got up his sleeve? (Fortune)
• Apple(AAPL Quote - Cramer on AAPL - Stock Picks) ready to unlock 3G iPhone. (Telegraph)
• Why the oil boom will eventually bust. (Fortune)
• Oil prices in other currencies. (Econbrowser)
• Oil Prices Raise Cost of Making a Range of Goods. (The New York Times)
• More Americans dip early into funds for retirement. (The Boston Globe)
• Small Caps Still Luring Hedge Funds. (IDD)
• The mess at UBS(UBS Quote - Cramer on UBS - Stock Picks). (Bloomberg Markets)
• The fleecing of Alabama. (Bloomberg Markets)
• Dollar policy for dummies, dimwits and dolts. (Bloomberg)
• Amazon(AMZN Quote - Cramer on AMZN - Stock Picks) Just Lost $1.8 Million in an Hour. (Advertising Age)
• Asia and the environment. (The Economist)
• Hedge Fund Contagion and Liquidity. (NBER)

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting