How to Profit From the "Next" Dubai

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View This Message on the Web December 2 How to Profit From the "Next" Dubai By Martin Hutchinson Contributing Editor Money Morning The Dubai World default is a matter of only $60 billion – mere peanuts when compared to other elements of the global financial crisis. It's thus of concern only to those silly enough to invest in real estate there (and the European banks foolish enough to finance it.) For the rest of us, it is a useful reminder that sudden collapses don't really come out of nowhere – they can be foreseen, and smart investors can plan for them. You see, I did foresee this one, for Money Morning readers – 16 months ago, before the global banking crash. Back in July 2008, I wrote that Dubai's economy was "more bubble than boom," that it had "a construction bubble worse than the Florida market and a monetary policy looser than Ben Bernanke's" and that "its return to earth will be painful and probably not long delayed." Let me share with you the signals that flash "red" when a bubble is in progress – and that suggest a crash may well follow. Indeed, you can actually make money in a bubble – if you know what to look for... Read Full Article » 9 Out of 10 Investors Will Believe the Story - and Get Burned The Syndicate is about to take the market higher and higher (as it's been doing)… past the level at which the shorts will give in. If you join the stampede as the "good news" about the Christmas retail season starts to make headlines, you'll get burned. Make no doubt, this is a planned attack. Renowned analyst Jon Markman can you show you to use this same manipulation (legally, for now) to turn the tables and take THEIR money. Go here for his report. Sponsored content Does the Bank of Japan Have Enough Juice to Overcome Nagging Deflation? By Jason Simpkins Managing Editor Money Morning The Bank of Japan (BOJ) yesterday (Tuesday) took steps to preserve a fragile economic recovery by pumping more short-term funds into the nation's banking system. However, many analysts are worried that the central bank didn't do enough to put a ceiling on the yen, and prop up its ailing corporate sector. Japan's central bank said it would make available $115 billion (10 trillion yen) in three-year loans at 0.1% interest. The announcement was made after the BOJ held an extraordinary monetary policy meeting, which was called to "discuss monetary control matters based on recent economic and financial developments," namely the rise of the yen and growing deflation that poses a threat to its nascent economic recovery. Japan's third-quarter gross domestic product (GDP) rose at a 4.8% annual rate, after revised growth of 2.7% in the second quarter. But the nation's currency, which last week hit a 14-year high against the dollar, is jeopardizing the recovery by making Japanese exports more expensive for other countries... Read Full Article » Investment News Briefs With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Gold Stretches Record Run; GM CEO Henderson Out; Philly Fed Calls For Interest Rate Hike; U.S. Auto Sales Edge Up in November; Chinese Manufacturing Continues to Expand; U.S. ISM Index Shows Slower Growth; Late Auto Payments in the U.S. Rise; The Clock is Ticking for Saab; Staples' Profit, Revenue Beat the Street Gold prices continued their record pace, eclipsing the psychologically important $1,200 per-ounce barrier yesterday (Tuesday) to settle at $1,200.20 on the New York Mercantile Exchange (NYMEX). At one point in the day, futures were trading at $1,204 an ounce, an all-time high. General Motors Co. (NYSE: GRM) Chief Executive Officer and President Fritz Henderson will resign his position effective immediately and Chairman Ed Whitacre Jr. will take over on an interim basis, the company said. Henderson, who has been with GM since 1984, took over as CEO March 31 after U.S. President Barack Obama asked then-CEO Rick Wagoner to step down. More information was not available at press time. Philadelphia Federal Reserve President Charles Plosser yesterday (Tuesday) called for higher interest rates in this cycle, becoming the highest-ranking central bank official to do so. In a speech in Rochester, N.Y., Plosser said that inflation could become a "serious concern" and the Fed must raise interest rates "sooner rather than later." Plosser, who won't have a vote on policy until 2011, said if the Fed does not act soon, "the inflation rate is likely to rise to levels that most would consider unacceptable." South Korea's Hyundai Motor Co. (PINK: HYMLF) saw the biggest gain as U.S. auto sales gained in November, the second month in a row. Hyundai's sales grew 46%, Toyota Motor Corp.'s (NYSE ADR: TM) sales rose 3% and Nissan Motor Co. Ltd.'s (OTC ADR: NSANY) sales grew 21%. Honda Motor Co. Ltd. (NYSE ADR: HMC) suffered a small 3% dip in sales, as did General Motors Co.'s (NYSE: GRM) with a 2% drop. Chrysler Group LLC suffered the biggest decrease at 25%, while Ford Motor Co.'s (NYSE: F) sales were flat. "It appears that the economy and the auto sales have stabilized and that the worst is behind us," Ford U.S. sales chief Ken Czubay said in a conference call. Manufacturing in China grew for the ninth consecutive month but decelerated in November amid headwinds from weaker trade and employment, the China Federation of Logistics and Purchasing said yesterday (Tuesday). The Red Dragon's purchasing manager's index (PMI) was unchanged from October's 18-month high of 55.2. Any reading above 50 indicates expansion. The flat month-to-month number "indicates the economic outlook has started to stabilize after reaching a high level and the recovery will become more steady," said Zhang Liqun, a researcher at the State Council's Development Research Center who comments on the PMI for the federation. The manufacturing sector in the United States also grew but decelerated in November, the Institute for Supply Management (ISM) said yesterday (Tuesday). The ISM's index of national factory activity was at 53.6, down from 55.7 in October. "The manufacturing sector grew for the fourth consecutive month in November," said ISM Chairman Norbert Ore. "While the rate of growth slowed when compared to October, the signs are still encouraging for continuing growth as both new orders and production are still at very positive levels." Delinquent auto loan payments rose 1.25% in the third quarter from the same period last year, credit-reporting agency TransUnion LLC said. However, late payment rates fell in Washington D.C. and six states: Colorado, Louisiana, Maryland, Vermont and both of the Dakotas. TransUnion expects delinquencies to rise 0.9% in the current quarter. General Motors Co. (NYSE: GRM) said it will phase out its Swedish Saab brand if it can't find a buyer by the end of this month. A deal with Sweden's Koenigsegg Automotive AB fell through last week, but GM said new potential buyers have emerged. GM already said it would phase out its Pontiac and Saturn brands after it failed to close those deals. Staples Inc.'s (Nasdaq: SPLS) third-quarter sales fell 6% but still managed to beat Wall Street's expectations of $6.45 billion. The company did manage to increase its profit to $269.4 million, or 37 cents a share, compared to $156.7 million, or 22 cents a share in the same period a year ago. Excluding one-time charges, the office supplies retailer earned 39 cents per share, beating average analyst estimates of 38 cents. The company's revenue was $6.5 billion in the quarter ended October 31, compared to $7.0 billion a year ago. Read Full Article » Money Map Report Login » FOUND: $2.8 Trillion Treasure Beneath the Eiffel Tower It's not gold or jewels from an ancient French king… or a priceless artifact lost in World War II. It has the potential to be far more valuable. And it's been discovered by a small company from Dallas, Texas. To learn all about this amazing discovery - including how it could hand you as much as 1,820% -- please go here for the complete report. 12/1/2009 GE Sets Up Comcast Venture With Buy of Vivendi's NBC Universal Stake 12/1/2009 South Korea's Exports Rise, but Future Looks Murky 12/1/2009 Will Cyber Monday Success Set the Tone for the Holiday Season? Feature Is China Secretly Targeting the Dollar? See More » The Week Ahead November 30 The Chicago Business Barometer December 1 ISM Manufacturing Index (11/09), Construction Spending (10/09), and motor vehicle sales reported. December 2 The ADP Employment report. December 3 Retail chains report Black Friday sales. Initial Jobless Claims (11/28) and ISM Services Index (11/09) reported. December 4 Unemployment Rate (11/09), Nonfarm Payroll (11/09), Factory Orders (10/09) Worth Considering Barack Obama's Hush-Hush $1.4 Billion Carbon Competition Buy, Sell, or Hold? by Horacio Márquez Insights on Income by Martin Hutchinson Inside Wall Street? by Shah Gilani When and How the U.S. Economy Will Recover Three Big Reasons Oil Prices Will Rally Back Big Time Alternative Energy Asia Commodities Europe Global Markets Gold/Precious Metals Oil Real Estate Technology U.S. Economy

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