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This Week’s Financial News: Paulson has an idea, Bear Stearns ain’t a cheap floozy and mind the overspray

Posted March 29, 2008

"At least the U.S. economy has started to look more like a soap opera and less like a Greek tragedy this week. Maybe we can get out of the current market situation without having to watch every player die a bloody, violent death, afterall… or maybe not. Either way, I’d bring a an umbrella to the performance. There may be splatter." — Stephanie Grimmett

by Stephanie Grimmett

Well, this week we discovered that Henry Paulson is going to save the U.S. economy by consolidating government regulators, that is, according to a study he commissioned last summer for the Treasury. His plans could streamline a bloated and overlapping system of regulatory bodies, if only Congress will listen to him.

— If you (like us) are less than confident that the government can revive the markets, you’re probably preparing for the worst. And we can help: J. Christoph Amberger spoke with bestselling business advisor Michael Masterson this week in a Special Report just for our readers.

Michael outlines six steps you need to take to keep your business successful and profitable during a recession. If you own a business, or just work for one, Michael’s advice could be invaluable to you in the current economic drama.

And that drama has continued in the last seven days. But at least the U.S. economy has started to look more like a soap opera and less like a Greek tragedy this week. Maybe we can get out of the current market situation without having to watch every player die a bloody, violent death, afterall… or maybe not. Either way, I’d bring a an umbrella to the performance. There may be splatter.

It turns out Bear Stearns investors aren’t all that happy to be bought out for 10% of their stocks’ worth. JP Morgan had to up its bid for the (temporarily, they swear) insolvent financial firm to $10 a share this week after shareholders threw a fit at the original $3 price.

In the meantime , fellow financial firm Lehman Bros. is suing Japan’s fifth-largest trading firm for $250 million Lehman says the company fradulently misappropriated. Lehman has been doing the liquidity dance in the last week, trying desparately to back up its claims that it isn’t suffering from the same cash shortage that destroyed Bear Stearns.

In other words, Wall Street’s banking industry is still an unpleasant place to work or invest. And the rest of the U.S. economy is still floundering to find a sustainable level, which means your money shouldn’t be in America right now. It should be somewhere else.

— So where do you put your funds while the American economy gropes for its own, er, bottom? Horacio Marquez has some great ideas for you. The long-time trader and Oxford Club editor told Laura Cadden about the emerging markets that will provide a safe haven for investors in this week’s Smart Trading Action Alert.

— But how hard will the U.S. economic crash hit these emerging markets? Can foreign markets really maintain their upward mobility, even with the U.S. dragging them down?

Sara Nunnally of Taipan Trader discusses the decoupling of international markets from the U.S. economy with our own Krista Das in this week’s Smart Investing Market Insights. Sara has been traveling the globe in search of investing opportunities for her Taipan Trader readers, and she’s discovered a few international market secrets to keep your money growing.

— Emerging markets are still driving a commodities supercycle, despite oil and gold coming off their highs this week. And J. Christoph Amberger has discovered a company taking advantage of the soaring metals prices, without the risk of mining operations. This company is buying a rare metal used in LCD displays and other cutting-edge technology.

With all of its uses, geologists predict we could see a global shortage for this metal in the next 10 years, or even the next five if in-ground estimates are higher than what we find. And in this week’s Hot Stock Pick Christoph tells you all about the IPO that could make you gains when the price for this rare metal skyrockets. Should you buy now or wait until prices begin moving northward?

— After Visa’s $19 billion IPO last week, we found out that the company’s European licensee is facing an antitrust investigation from the EU. The European Commission already told Mastercard it had to change its fee system or close up shop in Europe. Will Visa be next?

— And don’t miss a very special Amberger Smackdown on Tuesday. I can’t tell you much about it, yet. But definitely check it out next week. It will be well worth it.

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Posted by Stephanie Grimmett · Filed Under News that Matters 

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