COMMENCING 2010 WITH HOPE AND REGULATION

*REASONABLE REGULATION IS THE KEY TO STABILITY
*LESSONS TO BE LEARNED FROM PAST POLICIES OF THE LAST DECADE
Astoria, New York
We start 2010 on a hopeful footing. We hope that things will be different and better than the previous decade. We learned that regulation is a necessary evil. But we have learned that reasonable regulation is necessary for capitalism to survive. When Larry Kudlow, show host at CNBC, says that we need the FED to get out, we plainly want to laugh at him. He is the guy who said to a bunch of investment professionals that he was sorry that he had made a mistake in 2008.
Free capitalism does not work. Tough regulations don't work either. A blend of reasonable regulations have to be implemented and the FED has to act upon any anomalies in the economy with speed. And we mean it when we say reasonable. When interest rates went down in 2001, I believe it was unreasonable from the economic point view. When bank companies executive were getting large bonuses even though banks were loosing money and overlending, I believed that to be unreasonable too. Anomalies of any kind ruin the stability of the economy at the macro level. We need the FEDS to look more at the macroeconomics and less at the microeconomics so they can make sure that the events of the past decade don't occur again anytime soon.

THE DOW CONTINUES MOVE TO MID 10,000 RANGE, BUT IS IT AHEAD OF ITSELF

*THE REAL ECONOMIST THEORY IS THAT INDICES GO UP ON VARIOUS REASONS
*GREEN OR BLACK FRIDAY AHEAD FOR THE DOW?
Astoria, New York
The continuation of the rally of the Dow and other indices continues to stun the elite of the economists. As a real economist, you must take in consideration that indices do go up for various reasons. Some of the reasons are good and real ones, others are bad and fake ones. The good reasons: healthy growth of the economy( with increasing GDP), stronger currency that leads to higher demand for it, political stability domestically and internationally, fair accounting practices with non deceiving disclosures by corporations. The bad ones are simply the opposite of the above list, including inflation and deflation scares and higher interest environments. But economists suggest that we are in period of a mixed bag scenario. Low interest rates with hard to get lending, higher commodity values with sinking real estate values. This is leading to confusion and markets rising with only some slightly favorable news. The markets are pointing to 10,000 for the Dow after European markets sank more than 3 pct on Turkey Day. A real Black Friday ahead?

THE DOW FLIRTS WITH 10,000

* RESISTANCE AT 10,000 AREA HAS BEEN STRONG EVEN ON BREAKOUTS
Astoria, New York
With the Dow going back and forth above and below 10,000, a look back at the last 6 months is essential in understanding what happened here. The Dow hit a low between 6000 and 7000 in March. Thanks to the bailout, financials led the spring rally towards 8000. In the summer, it looked like the worst was over even though unemployment kept soaring. The market kept rallying after some pullbacks. By Labor Day, 9000 became a support level. In the late summer and early fall, the slow ascent towards Dow 10k even with more banks failing, gold breaking 1000 dollars and oil beginning to move north once again. And the government continues to print money, an easier task than other alternatives but resulting in a weaker dollar that hits 1.50 against the euro.

THE DOW DEFIES THE NEGATIVE ODDS, ON COLLISION WITH TEN THOUSAND

*THE DOW JONES AVOIDED 9000 EVEN IN THE MIDST OF ECONOMIC NEWS EARLIER IN SEPTEMBER
*A REAL ECONOMIST BELIEVES DOW 10,000 AREA TO BE A MAJOR RESISTANCE LEVEL
Astoria, New York
Even in the midst of sour economic news in late August and early September, the positive sentiment built by investors thwarted any attempt to a breakdown below 9000. The Dow ran down to below 9200 from the mid 9500 area but found support from investors believing that the recession may be over and that an economic recovery is taking place but slow and on track. With the Dow hovering above 9800, the markets are feeling the area of a major resistance in the 10,000 zone. " I believe it will take some time to break this level solidly. The initial belief was the market would have gone below 9000 and then come back to break the 10,000 level in a year end rally between October and late December. This looks like it could be earlier than anticipated"

THE DOW EXPECTED TO GO BELOW 9000 BY THE LABOR DAY WEEKEND

*FUNDAMENTALS DON'T SUPPORT LATEST BANK RALLY AS ECONOMY SHOWS SIGNS OF ONLY A SLOW RECOVERY
Astoria, New York
Cash for clunkers, national health care proposals, shaky labor market and no real economic theory fundamentals are making stories in August. While the cash for clunkers has helped auto sales and Obama may back off from a national run government medical insurance idea, companies are still unsure of what to do with unemployment. Even though we may have seen some kind of bottom, ripple effects could take a toll from a surge in taxes that will help governments curb increased expenditures, it may hurt small to mid size businesses. With this in mind and fresh off a sizzling July to August market rally, there may be room for a correction in the Dow. The Dow could easily crack back below the 9000 level with a possible aim towards Dow 8700 territory, an area of resistance in the late spring rally. Even the latest bank rallies were not as justified since PE ratios have been pushed to their highest level in the last few years with banks also shedding off their dividend payouts. Short term profit taking for various reasons could be taking place especially in some of the banks that have went up too much. Stay tuned to the real economist at www.therealeconomist.blogspot.com

ALERT: THE DOW HAS 90 PERCENT CHANCE OF GOING BELOW 9000 BY LABOR DAY WEEKEND

* THIS IS AN ALERT, A STORY WILL FOLLOW SOON

BREAKING NEWS <>THE DOW BREAKS 9000 IN JULY 2009 RALLY

*MARKET RALLY SET OFF BY GOOD ECONOMIC REPORTS COUPLED WITH EARNINGS UPBEAT

DOW ALERT AFTER MONDAY'S 100 POINT RALLY

* DOW 9000 IS A MAJOR RESISTANCE LEVEL
Astoria, New York
A powerful 7 percent rally last week has been met by another 100 point rally today. The Dow is now at 150 points shy of Dow 9000 territory. If last week, there was a sustained rally for financials, Monday was a negative day ,though, for them. The broader market continued to rally on good earnings reports and CIT's survival package. As a real economist and not a fake one, I see major resistance near Dow 9000. The markets continue to trade in 8000 to 9000 range and after testing Dow 8000 territory in early July, earnings reports coupled with better recovery prospects have launched the markets towards 2009's peak levels set in June at the end of the Spring Fling rally. There is a flip of the coin 50 percent chance that the Dow could hit or break 9000 in the next two weeks.

JUNE UNEMPLOYMENT PREDICTED TO RISE TO MID 9 PERCENT AREA, AS N.KOREA LAUNCHES MISSILES

*MORE UNEMPLOYED PEOPLE IN JUNE AS THE ECONOMY IS STILL UNDER PRESSURE
*NORTH KOREA FIRES 2 MISSILES AHEAD OF THE JULY 4TH FESTIVITIES
Astoria, New York
Perhaps two different kind of dark clouds, one of economic , the other of international political nature, and the markets are feeling the effects. June was not a good month for employees. The bankruptcy of GM and continued layoffs put a dent in unemployment across the country. A proposed Obama healthcare overhaul could unleash new jobs down the road as employers could save millions on medical insurance costs. June unemployment is targeted to be in the mid 9 percent area perhaps near 9.6 percent. In the midst of this, North Korea continues its missile launches provoking the United States and the world once again. I don't see a happy ending here but I hope there is one anyways. The Dow Jones and world markets are under pressure since they reached the top in the late spring. I see a potential of 75 percent that the Dow will hit 8000 within July. There should be solid support at that area but continued dark clouds could push it below. Perhaps we need a dark knight to solve the problems.

IRAN AND NORTH KOREA DEVELOPMENTS SET THE TONE FOR THE EARLY SUMMER DOLDRUMS

* EVENTS FREEZING SPRING FLING RALLY BONANZA AS WE ENTER THE SUMMER
Astoria, New York
It may have been a dandy of a spring, but now the summer, with wet spring weather carryover in the Northeast, could signal a flattish to bearish pattern for the late June period. As predicted here at the real economist blogspot, the Dow was anticipated to trade in 8000 range finding resistance just below 9000 and support just above 8000. But now dark clouds, and not the ones hounding New York City for several weeks, have loomed and are threatening the markets once again. The two big ones are Iran with a possibility of a revolution destabilizing that country, and North Korea with perceived threat for missile launches in July, perhaps on the 4th. There are other clouds too but for the time being, here I am concerned mostly with the international news front.
The possibility for the Dow to revisit 8000 exists as early today we have fallen below 8500. Stay tuned here at the real economist blogspot for real ideas, not fake ones.

MANY AMERICANS APPLAUD OBAMA'S HEALTHCARE PROPOSALS

*OBAMA BELIEVES HEALTHCARE IS LARGEST ISSUE FOR CITIZENS
*OBAMA LOOKS AT LONG TERM SOLUTIONS AND REVAMPING OF THE INDUSTRY
Astoria, New York
It is a real problem, a problem that has tormented this nation for a while and that is loosing your medical insurance coverage. With Obama beginning to tackle this issue with a speech yesterday from Italy, a nation that has socialized coverage, a glimpse of the future is starting to appear. The United States, the largest economy in the world, was in the brinks of collapsing market and the president has blamed healthcare for that. He said that many corporations like Gm have failed because of the high and always increasing costs of medical insurance. Obama is seeking to revamp the healthcare plague with a different philosophy. The problem is embedded in the healthcare system and it will take time to solve it. Doctors, insurance companies and patients have to do their part in order to go forward. Doctors have to become real doctors and not pencil pushers, Obama said. They have to put the patient first and not their own interest. Insurance companies have to right thing by reimbursing accordingly while patients have to take care of themselves by doing checkups and avoid smoking or eating fatty foods. Obama has also said that he would not likely put caps on malpractice suits. Overall, the president believes that a healthy America will make a stronger America.

MAYOR BLOOMBERG TO JOIN ASTORIA HOMEOWNERS TENANTS BUSINESS ASSOCIATION ON JUNE 11th

ASTORIA HOMEOWNERS, TENANTS & BUSINESS

CIVIC ASSOCIATION

ATTENTION MEMBERS & ASTORIA COMMUNITY: Please attend this important meeting on

THURSDAY, JUNE 11^TH, 2009

7:30 P.M.

St. Francis of Assisi School Basement 21-17 45^th Street, Astoria, NY

SPECIAL GUEST SPEAKER:

THE HONORABLE

MICHAEL R. BLOOMBERG

MAYOR, CITY OF NEW YORK

Come and hear directly from the Mayor about how the city of New York is doing during these difficult economic times

and hear what his vision is

for the future of the city of New York.

•

We will be honoring Mayor Bloomberg with a plaque for his

many accomplishments for the past eight years.

•

In addition there will be an update on other community issues.

PLEASE JOIN US - YOUR PRESENCE AND INVOLVEMENT ARE VERY IMPORTANT FOR A BETTER COMMUNITY!