SWINE FLU PANDEMIC COULD IMPACT WORLD ECONOMIES

*SWINE FLU IS A MIXTURE OF PIG, BIRD AND HUMAN FLU
*PHYSCHOLOGY OF OUTBREAK FLU COULD HAVE IMPACT ON GLOBAL RECOVERY
Astoria, New York
Government officials are worried that a swine flu outbreak that has already killed dozens in people in Mexico and already affected more than a thousand people combined in various countries including the United States, could stall the economic the economic recovery. Markets worldwide are under pressure, with futures in US showing a negative start." The battle for Dow 8000 has raged for more than 5 weeks as I predicted back in March. The 8000 level is a major resistance level in this leg up from the bottom near the 6500 bottom. A swine flu outbreak scare could give the bears ammunition to take this Dow below 8000 again." said the real economist.
In the meantime, http://www.microcapstock.blogspot.com/ has a speculative buy rating on GVSS with a 4 month target of 45 cents. A Spring Fling 2009 could turn more bullish for healthcare, medical technology and biotechnology stocks on news of the flu outbreak. PURE ( Pure Bioscience ) is soaring on the news of the outbreak because their formula kills viruses and bacteria. It is suggested to do careful and extensive due diligence before acting on any purchase or sale of securities. http://www.therealeconomist.blogspot.com/ endorses the consulting with financial and legal experts ahead of any consideration of purchase.

WHITE HOUSE RAT PUSHES OUT GM'S WAGON

*RATNER SAYS GM'S RESTRUCTURING NEEDS NEW LEADERSHIP
*WAGONER TO GET GENEROUS PENSION PACKAGE
*OBAMA SAYS HOPEFUL OF FIAT-CHRYSLER DEAL,SAYS F.I.A.T. A FINE INTERNATIONAL COMPANY UNDER GOOD LEADERSHIP
Astoria, New York
The markets tumbled on Monday because of the continued plague of the auto industry. At the White House, President Obama said that GM's ceo was asked to resign because of need of change of direction in the auto maker pursuit to return back to financial soundness. Wagoner won't leave GM empty handed. He will receive generous pension plan worth over 20 million dollars. Obama, on behalf of the taxpayers, said that the government is not considering to run the auto industry. He said that a financial disaster has struck the industry and as if it was a natural disaster, the government has to intervene in the same manner. He is giving the auto makers GM and Chrysler another 30 days to come with a better restructuring plan. Regarding Chrysler, Obama is hopeful of FIAT-Chrysler deal. He believes FIAT to be a fine turnaround international auto maker under good leadership. FIAT, the jewel of the past Agnelli family of Italy, has undergone a major restructuring plan and now under new professional leadership, is in a position to gain from the overall global situation, said the real economist. Just a few years ago, a cancelled put option by GM netted 2 billion to FIAT.

MARKETS MUSTER A SIGNIFICANT RALLY ON TREASURY, HOME SALES

*RALLY BRINGS MARCH DECISEVELY IN THE GREEN AFTER INITIAL TUMBLE
Astoria, New York
A rally that ignited investors around the globe was sparked by the unveiling of the Treasury Plan to soak up bad toxic assets. The real economist believes that such a plan, as predicted earlier, would try to maintain real estate value from sinking lower. This would lead to more money printing and easily higher inflation down the road. Also, credit would flow back into the system to stimulate the sagging economy. The real economist predicted a positive month in an earlier post. We are seeing some spring action after a long and disastrous winter. The rally is decisevely in the larger stocks, but rotation should set in and we could witness one of the largest spring small cap and microcap rally since 1996. That rally commenced in April and ended in June. For additional info visit www.microcapstock.blogspot.com. The rally was also fueled by an increase of 5.1 pct in real estate sales for February.

MARKETS AWAIT TREASURY PLAN ON RESCUING BANKS

*GOVERNMENT TO CALL BAD BANK "PUBLIC INVESTMENT CORPORATION"
*WAMU HOLDING CORP SUES FDIC OVER BLITZ TAKEOVER BY JP MORGAN
Astoria,New York
US markets sank on Friday ahead of the unveiling of a new plan for rescuing of banks and regulation on tarp/talf money. It didn't took much to anger many last week when AIG paid out bonuses in the millions to its executives. AIG and legal experts claim that the payments were made because of contractual obligations. Also,in a filing, WAMU Holding Corp said that JP Morgan underpaid for its assets. JP Morgan took over WAMU in 2008, in a government backed deal.
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THE REAL ECONOMIST LAUNCHES MICROCAPSTOCK.BLOGSPOT.COM

*NEW BLOGSPOT WILL COVER THE WIDE SPECTRUM OF MICRO CAPS
*JOIN IN CHATS TO FIND THE BEST MICRO CAPS OUT THERE
Astoria, New York
The real economist in an attempt to keep things simple, has decided to create a new blogspot for micro cap stocks. This blogspot will have more detailed information about these companies and it will also try to identify the best companies out there with everybody's help. It is not intended to be a guru website or make reccomendations. At www.microcapstock.blogspot, the intention is to create an atmosphere of identifying good companies with good financials, management and other tools necessary to create good oppurtunities for investors.
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MARKETS MAY HEAD LOWER AT THE OPENING IN THE US AFTER FED DECISION TO INJECT MORE THAN A TRILLION IN TREASURIES.
MARKETS HAVE BEEN STRONG SINCE LAST WEEK.
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THE REAL ECONOMIST IS IRATED AT AIG BONUSES AND CORPORATE WASTE ON BAILOUT MONEY. PLEASE VOICE YOUR OPINION HERE AT WWW.THEREALECONOMIST.BLOGSPOT.COM.

BREAKING NEWS <> UNEMPLOYMENT RISES TO 8.1 PERCENT

* EMPLOYMENT RATE HIGHEST SINCE 1983
* WELLS FARGO SLASHES DIVIDEND

BREAKING NEWS<> MARKETS LIFTED BY BERNANKE'S SPEECH, OBAMA COMMITTMENT TO BETTER AMERICA

FIRST EVER STOCK PICK (FOR PROS ONLY) AT WWW.THEREALECONOMIST.BLOGSPOT.COM
Astoria, New York
A speech by Bernanke televised by TV stations across the globe, including the Italian tv station RAI24 news, had the objective of reversing yesterday's losses for the Dow. With Bernanke explaining that the recession could be over in 2009, investors jumped by short covering and snapping up beaten down stocks. As the real economist has foreseen some kind of relief rally this week, he is also concerned by negative news coming from different angles of this battered economy. It's like the Battle of the Bulge, where there are no clear winners, until something drastic happens. Hopefully, it will be on the upside. With Obama reaffirming, tonight, his committment in fixing this financial mess by sacrificing, people are still perplexed in identifying the exact road that Obama will be taking. Will he be more on the hunt for catching fraudulent activities or will he be taxing the rich to cut down the deficit?
The real economist in its first attempt, will make its first micro cap stock pick for pros only. Pros are considered experts and accredited investors. A regular or new investor needs to consult with a financial advisor or an expert to ascertain his risk tolerance and qualification. A pro should also do some due diligence and check reliable sources for additional information regarding the below mentioned company. Prices could fluctuate significantly causing a major gap in value. Bottom fishing and buying at the bid when combined, could prove to be a winning strategy. This is not a solicitation to buy or sell this security but just a stock pick for monitoring purposes only. The following security has the potential to surge on the upside for various reasons. The following security could also collapse and become worthless for unseen reasons too.
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STOCK PICK : GVI SECURITY (GVSS)
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Last Trade:	0.30
Trade Time:	Feb 24

OBAMA GETS VOTES TO PASS STIMULUS PLAN; WILL SIGN BILL IN NEXT 48 HOURS

THE 787 BILLION STIMULUS PLAN IS MAJOR MILESTONE FOR OBAMA
RESULTS OF OUR RECENT POLL INDICATES STIMULUS WOULD HELP A LITTLE THIS ECONOMY
Astoria, New York
President Obama says that this is not the end of the deep recession but the beginning of the end of it. After debates, some alteration and major opposition from Repubblicans, the new Stimulus Plan has squeaked by the Senate earlier last week, and was passed finally by Congess on Friday. Obama wants to put Americans back to work with a massive infrastructure plan. He also wants to boost new green technologies to alleviate and eventually eliminate dependence on foreign oil. A stimulus break for $400.00 per person and $800.00 per couple is expected to affect 95 percent of Americans. As most top economists say, the Obama Stimulus would only help a little this economy and much more may be needed to bring it back to normal. Therealeconomist ( THE REAL ECONOMIST ) believes that in order to protect property values, governments may need to print more money leading to longer term inflation and the amount of stimuli needed in the U.S. for the next four years, would amount to between 2 to 5 trillions.
(( Top economist LARRY KUDLOW at CNBC believed that the damage was only between 10 to 20 billions (MAY 2008 at the TAGLICH CONFERENCE ))

MINI DEPRESSION VERSUS (GREAT) DEPRESSION

Astoria, New York
Last winter, I had tossed the idea of a possibility of a mini depression looming ahead. During the summer, I was convinced that we were heading towards one. What is the difference between mini and GREAT? A lot. In a Great Depression, people will be struggling to put food on the table. Most banks will be going bankrupt, and urban areas could become vacant lots because there are no jobs available. That doesn't sound nice. It did happen in the Great Depression of the late 20's and early 30's. The inaction of the government as well food shortages and calamaties could create another one. In a mini depression, instead, the government is more efficient in allocating its resources quickly and swiftly to deal with any rising problem. Food is available as well as housing. Credit becomes scarce and unemployment rises due to cost efficiency programs implemented by companies. Today, we have resources that can help us thwart another Great Depression. These resources were not available back then. We have computers that could give us information instantly. We have better technology and communication across agencies. We have security. We have food and transportation availability. We have medical resources availability. We have cooperation among foreign governments. And we have the spirit of moving forward. So, you may ask: " Can we head towards another Great Depression ?" And I would reply: " YES, WE CAN".
But we won't , if we can stick together and we tell the powerful fat cats to do the right thing. Government bailout money to bonuses for the fat cats??? That is a no no. I don't want to think about the idea of those fat cats living 2000 years ago in Rome if they were able to get away with it, if caught.
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ALERT<> SENATE TEST VOTE IN FAVOR OF STIMILUS
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THE NEXT BLOG > MICRO CAPS HUNTING (Part 2 )

THE SENATE READIES TO VOTE ON OBAMA'S ECONOMIC STIMULUS

Markets were higher in the United States and overseas on hope that the stimulus plan would stabilize the economy, but the debate continues on what to do about the bad assets, as well as how to allocate government spending.
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Stay tuned to http://www.therealeconomist.blogspot.com/ for more developments.
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PLEASE VOTE IN THE NEW POLL REGARDING THE STIMULUS. (in the right column) ----------------------------------------------------------------------------->
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THE NEXT BLOG> MINI DEPRESSION VERSUS (GREAT) DEPRESSION
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JANUARY 2009, WORST JANUARY PERFORMANCE ON RECORD, IN MIDST OF MORE SCANDALS

Markets tumbled in January in the midst of the biggest scandals in the financial markets that I have ever read. After Bernie Madoff's 50 billion dollar ponzi scheme discovered last month by the Feds, another smaller version has been found in the past week. Nicholas Cosmo, from Agape World, has been accused of running a similar version of the investment scheme. This comes as the markets have been pummeled in 2008 in the worst financial crisis since the Great Depression that has been taking place in the U.S. It has been unfortunate that these events which can cause catasthrophic repercussions on investors, have taken so long to identify while "nickle and dime" small and insignificant cases are discovered faster. More regulation involving legal and compliance means may be required going forward.
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www.foxbusiness.com/story/stocks-end-worst-january-record-losses/

www.nydailynews.com/money/2009/01/29/2009-01-29_judge_minimadoff_nicholas_cosmo_must_fin.html