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

MARKETS EXPECTED TO RISE A BIT AFTER LAST WEEK'S NEW CLOSING LOWS

Astoria, New York
With banks ,such as Citibank (C) and Bank of America (BAC) , getting ripped apart and causing the markets (and the Dow) to sink towards Dow 7,000 , the real economist sees some relief rally in the upcoming week. The implementing of the new stimulus and the effects of it, in the midst of a deteriorating economy, are still puzzling investors across the globe. On a technicality, markets should jump early but then turn cautious awaiting economic news by mid to end of week.
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http://www.economyincrisis.org/?gclid=CL_TocD78ZgCFQwNGgodN3NB1Q
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THE REAL ECONOMIST SEEKS ELECTRONIC SECURITY TO COMBAT FINANCIAL FRAUD

* ELECTRONIC SURVEILLANCE OF FINANCIAL TRANSACTIONS OF $10,000 OR MORE
* MORE EFFICIENT MONITORING OF FINANCIAL COMPANIES WITH MORE THAN 1 MILLION IN ASSETS
* BELIEVES THAT FINANCIAL FRAUD IS EQUAL TO FINANCIAL TERRORISM
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Astoria, New York
Another alleged scandal, involving a Texas billionaire named Stanford, has crossed the wires today. This scandal involved CDs, a safe type of investment. This has shocked many people across the globe. Even though the size of the scheme of 8 billion is far less than Madoff's Ponzi, it has serious ramifications.
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For more information, please click on the following>
http://finance.yahoo.com/news/Billionaires-bank-customers-apf-14407193.html

MICRO CAPS HUNTING (Part 2) THE FOUNDER

The beauty about micro caps is that they are easy to understand as compared to the BIG BOYS, the so called Blue Chips, (maybe you can call them Black and Blue Chops these days ). In this session, I want to discuss the difference between the founder and the other guys. The founder and co-founders if more than one, are the people that give light to the corporation, They could be scientists, professors, business owners, real estate tycoons, or just anybody who wants to start a business with the goal of making money. What I have noticed, is that most founders have a better attitude towards their company than the next guy down the block. He/She( or they), will be dedicated to the success of their company more than anybody else. They are dedicated and they devote most of their time to well-being of the company. Once the founder departs, because of sickness or other reason, the guy down the block steps in. He or she will have a different idea about the company. That could translate into an incentive. Will the new person do the job if the price is right? Will he/she be able to bring his friends in so they can raid the company with creative financing? Will he/she be able to run the company down because he has conspired with a competitor? Will he/she be careless and wasteful as long as he/she gets his/her salary, perk and bonuses? Will the accounting be more transparent as it was with the founder, or will it contain more hidden and forbidden liabilities? The good thing about the founder is that he/she will try to create longevity for the company through some sort of nepotism. The successor could be a child, a younger sibling, a spouse, an in-law or more distant relative. The founder, if he succeeds, would be more interested in the development of his/her successor than the other guy. I have seen companies like LMTI that are classical when it comes to this. And this one may involve the entire family. LMTI, known as Laser Master is not a laser but a gift wrap company. The founder has his children working for him, and together they have weathered many storms in protecting this company. Bottom line is that I am not against the other guy. I am just saying that I will favor a company with a founder if I am seeking longevity in a micro cap. The price of a stock could go in many directions, because I consider the stock as the soul of the body, while the company itself, as the body. ((Laser Master (LMTI) is company with its stock quoted on the Nasdaq bulletin board. Past performance is not indicative of future performance. The mentioning of this company was not intended as solicitation to buy or sell this security but for discussion purpose for the blog on MICRO CAPS HUNTING ( the founder). Usually, the risk of investment losses is higher with micro caps than larger and more stable companies. ))

*BREAKING NEWS - OBAMA SIGNS STIMULUS BILL IN DENVER

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

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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IN MEMORY OF MARCUS TULLIUS CICERO

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BECAUSE OF AMERICAN FAT CATS GREED AND AMERICAN POLITICIAN INJUSTICES, ALL OF OUR STATES ARE NOW SUFFERING, ALL OUR FREE COMMUNITIES ON MAIN STREET ARE COMPLAINING, AND EVEN FOREIGN GOVERNMENTS AND PEOPLE ARE PROTESTING. AS FAR AS THE BOUNDS OF
THIS UNIVERSE, THERE IS NO SPOT NOW SO DISTANT OR SO OBSCURE THAT THE WANTON AND UNSCRUPOLOUS DEEDS OF THE AMERICAN FAT CATS HAVE NOT PENETRATED THITHER.
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Dear Larry,
I appreciate listening to some of your speeches. I have learnt more about what and who you are but I believe that this is a conference directed for the small stock investors. It should have a speaker who can understand and discuss the issues that the listener needs to know before he considers investing in these micro companies. Politics is an essential part of macro economics and micro economics. But politics cannot and should not persuade an economist to alter his opinion for the benefit of his fellow politicians. A media economist must remain independent at all times so he can favor what he truly believes in, and that is a fair economy and true economic growth.
Real estate as you may have learnt lately is an essential part of this economy and other economies worldwide. It is a multi trillion dollar business which affects banks, insurance companies, and any other industry that you can think of. A question came to your plate 3 years ago at this conference. It asked you if Americans had borrowed too much and if the true worth of real estate prices had been compromised. You argued that Americans had borrowed the same percentage to equity as usual and that prices were backed by the strength of the money supply of this economy. You were wrong. Freddie and Fannie were giving out or buying out loans with zero equity. When real estate gets manipulated by the politicians and by the greedy fat cats, it could overshoot causing a manic period in prices, just like small stock prices tend to soar on particular times on Wall Street. But there is a difference. Real estate affects everyone anywhere while stock prices in small stocks only affect a few. And the sad thing is that they have more regulation on small companies instead of having it on the real estate industry. You argued in the past against European policies and against its currency. You were wrong. The euro soared to 1.60. But the Europeans followed the greedy fat cats and they also fell in that fat cat trap of this global economy. Somehow, the greed of the fat cats is contagious and persuasive enough to convince people, from economies with more regulations, to indulge into an easy way out of their debt. But now change has opened its doors in America. The president elect has promised to change the way Wall Street operates. His hands are full as he inherits this financial mess. Bailouts and cry-outs are distrusting and disgusting for capitalism but not for the welfare and protection of the economy. The greedy American fat cats and those with unlimited executive compensation who don't know how or are too greedy to protect their companies on a rainy day, now will lose weight and they will feel the pain of change. Capitalism will survive in one shape or the other but it will be played on a different playground.
Taxation and regulation as well as caps on executive compensation for those public companies that are owned by private shareholders will be needed to be implemented in a fair and consistent way. This will be essential in Monitoring against excessive economic spurs that could affect anyone anywhere anytime.
For me, it was Marcus T Cicero who inspired me in writing this letter to you. Even though,
we are more than two thousand years apart, we live in a period of time that could be similar economically and politically to that of the roman senator. History usually repeats itself.
This is serious stuff. This is not what you thought just a few months ago at another stock conference. The amount of money in question here is really huge.
Sincerely, a fellow
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( written in early November 2008, ahead of the Westergaard Paulson Small Cap Conference at the Waldfoorf Astoria, NY )
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OBAMA IN FIRST RADIO ADDRESS

• In his first radio address to the nation, President Obama has outlined his proposed stimulas plan. He wants to promote education, green renewable energy, health care and security. So far, the economy has continued to deteriorate with unemployment insurance claims rising to new highs and housing starts falling again. With the Dow Jones declining almost 8 percent in 2009 and banks under serious pressure, another stimulus plan looks likely to be passed in the next few weeks. Obama also said that he wants accountability for the spending and has initiated a new website for taxpayers who wanted to know how the money is spent at http://www.recovery.gov/.
  PROPOSED STIMULAS PLAN
  SECURITY
• <>BOOST SECURITY AT 90 PORTS
  <>BETTER COMMUNICATION BETWEEN LAW ENFORCEMENT AND PUBLIC OFFICIALS IN CASE OF AN EMERGENCY
  EDUCATION
• <> MODERNIZE 10,000 SCHOOLS
  <> PROVIDE HIGHER EDUCATION TAX CREDITS TO 4
  MILLION STUDENTS
  HEALTH CARE
• <>NEW TAX CREDIT FOR PEOPLE LOOSING THEIR JOBS
  <>INCREASE MEDICAID BENEFITS
  <> EXPANSION OF CHILD TAX CREDIT
  ENERGY
• <> 3000 MILES OF NEW TRANSMISSION LINES TO CONVEY
  ENERGY FROM COAST TO COAST
• <>BUILD UP CLEAN ENERGY INDUSTRIES