JPMorgan to buy ailing Bear Stearns for $2 a share

• "a stunning collapse for one of the world's largest and most venerable investment banks."
• "JPMorgan's acquisition of Bear Stearns represents roughly 1 per cent of what the investment bank was worth just 16 days ago."

LINK

Now I am starting to get scared, this is starting to get really ugly!! Is tomorrow going to be another "Black Monday"!!!??? Are we in for another Great Depression??

I will go as far to say that there will be some very sad looking bank stocks after tomorrow.

Recession???

Things are not looking all that hot today.

• Gold, oil rocket to record highs


• Canada's economy stalls


• U.S. auto sales slide in February


• Buffett sees U.S. recession now

I don't know about you, I think we are in for a serious economic slow down. Everyone claims we will be ok because of other countries buying our resources. Unfortunately the US is still our largest customer by a long shot.

Get out of debt, inflation is on the rise and higher interest rates are around the corner.

US Key Interest Rate stays at 5.25%.

U.S. Federal Reserve leaves key interest rate unchanged for fifth straight meeting
Canadian PressPublished: Wednesday, January 31, 2007

"WASHINGTON (AP) - The U.S. Federal Reserve has left a key interest rate unchanged for a fifth straight meeting while repeating worries about inflation."

"The central bank voted to leave the federal funds rate, the interest that banks charge each other, at 5.25 per cent, where it has been since last June. "

"While the Fed had been expected to start cutting rates later this year, economists are now worried that the central bank may feel the need to resume raising rates for fear that inflation pressures will not keep easing. "

"The rate action was supported by a unanimous 11-0 vote of the Federal Open Market Committee, the panel of Fed board members in Washington and regional bank presidents who meet eight times a year to set interest rates. " Full Article.

Canadian Oil Sands Q4 profit falls 26%

Canadian Press

CALGARY — Canadian Oil Sands Trust said its profit fell to $128 million in the fourth quarter, down from $174 million in the year-earlier period, as its bottom line was hit by higher Crown royalties, higher operating expenses, and higher foreign exchange losses.

Profit amounted to 27 cents per unit, in the fourth quarter of 2006, down from 38 cents per unit, Canadian Oil Sands announced Monday after markets closed. The trust is the largest partner in the Syncrude oil sands project.

Cash from operating activities increased to $412 million, or 88 cents per unit, in the fourth quarter of 2006, up from $281 million or 61 cents per unit for the fourth quarter of 2005.

For the full year ended Dec. 31, net income was $834 million, or $1.78 per diluted unit. That compares with 2005 net income of $831 million, or $1.80 per unit diluted. Cash from operating for 2006 was $1.14 billion, up from $949 million or $2.07 per trust unit.

Canadian Oil Sands units closed Monday at $30.79, up 35 cents or 1.15 per cent on the Toronto Stock Exchange. Full Article.

Fed Rate Cut, don't get your hopes up.

This week's Fed announcement on interest rates will focus investor attention
Published: Sunday, January 28, 2007 11:41 AM ET
Canadian Press: MALCOLM MORRISON

"The Fed makes its next rate announcement on Wednesday under very different expectations from just a few weeks ago. "

"Everything we're seeing suggests that the downside risk to the U.S. economy is abating," said John Johnston, chief strategist, The Harbour Group at RBC Dominion Securities.

"And with that you're getting any hopes for a Fed rate cut kind of being pushed away." Full Article.

Interest Rate Cuts, Don't Count On It.

Inflation edges up to 1.6%
Last Updated: Tuesday, January 23, 2007 8:20 AM ET
CBC News

"Canada's annual inflation rate rose to 1.6 per cent in December from 1.4 per cent the month before as housing costs rose again and drivers paid more for gasoline."

"Don't expect [Bank of Canada] governor Dodge to even mention rate cuts until we see a rising unemployment rate," he said." Full Article.

Is Canada's economic star fading? Weak Demand for Oil?

The commodities sector has carried the market in recent years. Those days may be numbered ?
David Berman, National PostPublished: Monday, January 22, 2007

"If you're wondering whether there has been an important shift in the commodities market, look no further than Jeffrey Rubin. The chief economist and chief strategist at CIBC World Markets has made a name for himself in recent years as one of Canada's strongest energy bulls, arguing that dwindling supplies and surging demand for oil had created a perfect environment for producers: Crude oil, he said, was on its way to US$100 a barrel."

"But today, with oil prices tumbling toward two-year lows and his target off by nearly 50%, Mr. Rubin is taking a second look. It's not because of the warm winter; it has more to do with weak demand, as fuel-conservation measures such as the use of ethanol kick in." Full Article.