SPAIN JOINS IN EUROPE'S WOES, EU TO WORK OUT A GREEK DEBT DEAL

* SPAIN'S DEBT DOWNGRADED
* EU CHIEF SAYS WORKING ON GREEK DEBT DEAL BAILOUT BUT NO ASSURANCES GIVEN
Astoria, New York
More jitters for Europeans after a downgrade of Spain's debt. The country joins Portugal and Greece in Europe's credit crisis. Today, EU chief Herman Van Rompuy has said that his council is working on solving the Greek financial crisis but cannot assure on that. The deal should close in the next few days. He also is enforcing a 2 month ban restricting short sales on the Athens Stock Exchange. This was good enough to send European shares higher today. US shares have rallied yesterday from a decline on Tuesday that took the Dow below 11,000. Yesterday's close saw the Dow above 11 k again. The euro is a bit higher today above 1.32 against the dollar.

EUROPEAN DEBT JITTERS PUSH DOW BELOW 11000

*PORTUGUAL JOINS GREECE IN DEBT WATCH WORRIES
*EURO SLIDES TO NEW 2010 LOWS
Astoria, New York
The greek debt status cut to junk as Portugual's rating downgrade took aim at the world markets. Markets across the globe saw new fresh 2010 peaks clubbered a bit on Tuesday as the European credit crisis deepens a bit. Even a rescue package for Greece did not seem to save it from junk status. But a Portugual downgrade opened the door to a possibility that other European countries such as Spain could follow Greece. These countries are the southern portion of Europe. Historically Southern Europe has been a weak spot for Western Europe. Italy, another country in the area, has been a bit stronger lately thanks to the center right government of billionaire Silvio Berlusconi. The euro currency has been on a slide lately and
Tuesday's events took it to new 2010 lows near the 1.30 area against the US dollar. The real economist will continue to monitor further developments on the European debt crisis.

GOLDMAN SACHS FRAUD PROBE MAY SEND RIPPLES THROUGH THE FINANCIAL MARKETS

Astoria,New York
Goldman Sachs, the jewel of the financial banking system, is under the gun as allegations of fraud are arising. This blogspot will keep updating the situation.
Initially, shares of the company have fallen a bit, but news of good earnings report have baAslanced this situation. "The ongoing investigation and testimony in Congress may be damaging to a degree and we will need to continue to monitor all of this" finalized FPG.

THE DOW CONQUERS THE 11000 MARK,WILL IT HANG ON TO IT?

*LONG AWAITED 11000 TOOK A WHILE BUT ARRIVES BY MID APRIL
*THE REAL ECONOMIST STILL SEES NEGATIVE ECONOMIC ISSUES
Astoria, New York
The Dow reaching 11,000 was like the Roma soccer team of Italy getting past Inter. It took time and hard work but it was achieved. Even though negative economic data are lurking around, positive signs of stability and decrease in unemployment have helped indices push higher. With interest rates near and at lows of the year, investors have returned to large and small cap companies as flocks of birds do when come back from the winter migrations. The Fed has said that interest rates are historical lows but they expect rates to go back higher sooner than later and real estate is in a dormant stage. In the meantime, hungry investors are sliipping back to risky investments. If you look at them, some investments are less risky than one's eye or immagination may suggest. Low priced stocks with low capitalization and good financials could be some of the ingredients for an investor's recipe.

SPRING BLOOM MAY BRING DOW TO 11K

*The Dow has not seen 11000 since 2008
Astoria, New York
The markets hanging in the 10K range for most of the winter are about to crack at the 11K area for the Dow. April begins as a lamb for the holidays, after a snowy February and a wet March. "Even though we still see problems with the economy, it has stabilized in the short giving investors a vote of confidence. This in turn is giving investors a chance to buy stocks with alternate investments not bearing fruit" finalized FPG.

MERGER AND LENDING ACTIVITY FAVORING SMALLER CAPS IN 2010

Astoria, New York
Many small companies with good balance sheets and loss carryforwards in the Small Cap and Micro Cap World are in the driver's seat for 2010. With mergers and takeover activity starting to pick up coupled with better lending for the smaller companies, we have the potential for these tiny companies to outperform their larger counterparts. The capital gains rate, steady in 2010, is expected to rise by percentage points in 2011. Also tax rates for corporation is expected to go higher as government budgets need to find ways to solve their credit crunches. Thus, there is a rush to look for bargain small companies that can offer increased sales and loss carryforwards for the larger companies. Mergers among small companies could take place for various reasons too. Cost constraints, need to consolidate to save money and diversification to stay alive could be reasons for the micro caps to decide on a merger or a privatization. One of the interesting takeovers was Sirit ( SI.TO ) of Canada by Federal Signal. Sirit is a Rfid company that uses its technology for highway and bridges tolls. The initial takeover price was 30 cents Canadian currency but yesterday the offer was finalized at 46 cents, a whopping 53 plus percent premium. It signals the markets that many small and micro caps are undervalued and after thorough due diligence, it can lead to unleash higher values on these tiny companies. Also, lending towards smaller companies with good balance sheets and good stories has been favorable. " With less money out there to lend, it probably is better for the investment lenders to spread it out on a few favorable smaller companies than on a single larger cap. You are simply diversifying the risk and could be reaping on much higher rewards" finalized FPG.
Posted by FPG at www.MicroCapStock.blogspot.com 1:47 AM

ALL EYES POINT TO DOW 10,000

CAN IT BREAK IT AND FIND SUPPORT?
Astoria, New York
The idea of returning back to 10,000 and just below it, in late 2009 comes back in February ahead of the Superbowl. A mixed bag of negative news continues to plague the markets even though hope of a quicker recovery and demand for lower valued stocks have supported a short term Dow above 10k market. This blogspot will continue to monitor the developing situation. Stay tuned.

ITALIAN VICE IN NEW YORK ON FEBRUARY 4TH

Astoria, New York
Dinner in Honor of Gianfranco Fini, President Italian Chamber of Deputies
Thursday, February 4, 2010The Grand Hyatt Hotel (Park Avenue at Grand Central, New York)
Reception begins 7:00 pm - Dinner begins 8:00 pm
On Thursday, February 4, 2010, the President of the Italian Chamber of Deputies, Gianfranco Fini, will be in New York during a visit to the United States. On this occasion, the Italian American Community of the States of New York, New Jersey and Connecticut will organize a dinner in honor of the President of the Italian Chamber of Deputies on Thursday, February 4th at the Grand Hyatt Hotel (Park Avenue at Grand Central, New York). The reception will start at 7:00 p.m. and dinner will follow at 8:00 p.m. We look forward to a warm participation at this important event and count on your commitment to ensure that members of your organization will participate in the highest possible number. Thank you in advance for your support of this important initiative. Reservation Form
Please list below the name, phone number, e-mail address and organization of those attending I am enclosing a check for $..........for……Golden Seating Table(s) of ten at $2,000 each I am enclosing a check for $..........for……Golden Seating Ticket(s) at $200 each I am enclosing a check for $..........for……Silver Seating Table(s) of ten at $1,300 each I am enclosing a check for $..........for……Silver Seating Ticket(s) at $150 each Checks should be made payable to: The Consulate General of Italy (Pres. Fini) Please mail this form and your check to: Mr. Giorgio GoriniConsulate General of Italy690 Park AvenueNew York, N.Y. 10065For security reasons all tickets are non-transferable and all attendees must present a photo I.D.To ensure that you are seated with members of the Italian American Museum please contact: Dr. Joseph V. Scelsa at (917) 642-4922

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"