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 <> MARKETS CONTINUE RALLY AS THE DOW HITS 7300

* BANK STOCKS CONTINUE RALLY, CITI SOARS ABOVE 2
* TECHS HOLD NASDAQ DOWN

MARKETS RALLY ON CITI FORECAST, DOW SOARS ALMOST 400 POINTS

CITICORP SAYS IT IS HAVING BEST QUARTER SINCE 2007
ASTORIA, NEW YORK
March, a crazy month for anybody. Just think about the Ides of March. After dipping to new lows last week, the Dow and the beaten down bulls have mounted a counterattack against the bears. The result was a monster move in percentage terms for the Dow and other indices. Citi on the news, stating that it will be profitable in the first quarter of 2009 and that was enough to ignite the fire. Financial stocks led the rally after being beaten down to historical lows.

BREAKING NEWS <> STEM CELLS STOCKS RALLY ON OBAMA

*OBAMA REVERSES REPUBBLICAN GEORGE W. BUSH POLICY AGAINST EMBROYONIC STEM CELLS
*STEM CELL STUDIES CAN HELP FIND CURES FOR MANY DISEASES
ASTORIA, NEW YORK
It took eight years of Bush's anti-stem policies to wipe out the capitalization of many genetic and stem cell research companies. Now, with Obama, the tide may favor these companies, if they were able to survive. The idea is that stem cells could help save lives in fighting many kinds of illnesses. From diabetes to Parkinson's disease to spinal injuries, scientists hope to find new ways to cures or prevention. While Bush's reasons were religious, it is understandable that this action has stirred up members in the religious community. Shares of stem cell companies rallied on the news and will be eyed upon by aggressive investors. Usually, these type of companies have a significant amount of risk associated with them and are better suited for sophisticated investors.

BREAKING NEWS <> UNEMPLOYMENT RISES TO 8.1 PERCENT

* EMPLOYMENT RATE HIGHEST SINCE 1983
* WELLS FARGO SLASHES DIVIDEND

MICRO CAPS HUNTING - ( Part 3 ) DIRECT INSIDER BUYING

THE REAL ECONOMIST EXPLAINS GVSS STOCK PICK FOR PROS ONLY:
INSIDER BUYING IS A STRONG TOOL FOR EVALUATION.
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There are many tools for evaluating micro cap stocks. I don't like to call them all penny stocks, because for me, penny stocks are the ones where you have at least 100 million shares or more and they trade for just a few pennies. Micro caps are just small tiny companies. When a micro cap becomes a penny stock, then I have to evaluate if to sell it or buy more. One of my preferred tool is Direct Insider Buying. Direct means that the insider is putting his/her money,dollar per dollar and not pennies on the dollar, for the purchase of traded shares. The insider is probably sending a signal to the street that he is buying because he feels that shares may be a bargain at that particular price. He may be right, he may be wrong, he may be clever or he may be not so clever. After the direct purchase, the insider has to file a Form 4 within an amount time. A Form 4 looks like this
http://app.quotemedia.com/quotetools/showFiling.go?name=GVI%20SECURITY%20SOLUTIONS%20INC:%204,%20Sub-Doc%201&link=http%3A//quotemedia.10kwizard.com/filing.xml%3Frid%3D12%26ipage%3D6081722%26DSEQ%3D1%26SQDESC%3DSECTION_BODY%26doc%3D1&cp=off&type=TEXT
For the nasdaq.com site go to:
http://www.nasdaq.com/asp/quotes_sec.asp?symbol=GVSS&selected=GVSS
Direct buying is real and tangible if you compare it to indirect buying or exercise of below market options or just free stock. Of course, direct insider buying is just one tool and many other tools must be looked at separately before combining them to see what effects it can have on that particular stock.

BREAKING NEWS<> FAT CATS SLAMMED OUT OF CITI, GOVERNMENT TAKES BIGGER STAKE

*CITIBANK'S CITICORP SHARES PLUMMET IN PRE-MARKETS TO NEW LOWS, CAUSING FUTURES TO SINK DEEPER
*GOVERNMENT TO REVAMP CITI BOARD, TAKES LARGER STAKE BY CONVERSION OF PREFERREDS
*MOVE SEEN AS THWARTING A RUN ON THE BANK
FEBRUARY'S POINT DECLINE FOR DOW, WORST ON RECORD. DOW NOW STANDS AT 50 PERCENT LOSS FROM ALL TIME HIGH. THE REAL ECONOMIST OF ASTORIA, OFFICIALLY DECLARES THE WINTER AD 2008 TO AD 2009 AS THE WORST IN THE LAST FEW DECADES.
ASTORIA, NEW YORK
Another friday, another down day for the Dow. February closes with the Dow just above the 7000 area. The major culprit was Citicorp (C). It was forced to go back to the government and make another deal. The latest one will bring the government's stake in Citi's common to 36 percent. The move will dilute further existing shareholders. This week has seen other bad news including an increase in first time unemployment applications, a decrease in existing home sales and a 5.2 pct decrease of durable orders for January. The real economist believes that March could be a wild one for the markets. "After a dip below the 7000 level, it is possible to see a slim gain for the month if not better. We need to see spring soon ".

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

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

MICRO CAPS HUNTING (Part 1)

I have seen many investors in my life. Each investor is different and has different qualifications for investing but all investors are similar when it comes to making a profit on their investment. Whether it's short term or long term ( if they have patience ), each investor needs to understand that an investment can be a tricky thing. You can ask Mario Gabelli, a mutual fund company owner about that. I had the honor of meeting him back in October 2003 on the Intrepid Museum for just a few minutes. My comment to him was about a penny stock called Baldwin Technology (BLD) on the Amex. He was shocked, and quickly replied that the the stock was a tricky one. All micro caps are tricky indeed. BLD sank to a low of 18 cents in April 2003 in midst of a debt restructuring and mounting losses. Mario's funds had a cumulative stake of more than 10 percent as they felt the vibrations of this equity position. The night I met Gabelli, BLD was at 99 cents as it was headed to 7.00 in the next couple of years. BLD became a classic 30 bagger plus. The level of confidence in each investor is different but investors who are searching for risk, may find remedy in micro caps. In the next posting on Micro Caps , I want to discuss the risk of investing in these tiny companies. (BLD was mentioned a past historical performer. It is not indicative of future performance, and it's not intended as solicitation to buy or sell this equity)
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(Attendees at the Small Cap Conference at the Waldforf Astoria vote for micro caps/small caps)
LINK http://www.paulsoninvestment.com/Press/PLCC%20-%20Westergaard%20Survey%2011-08.pdf
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