So the G-20 (which is the group of finance ministers from the 20 largest economies), gathered this weekend and tried to iron out a plan for a better way forward during this turmoil that is spreading like a cancer now in almost every continent.

My question is? What are they doing at this point? It seems like nothing can stop the course of this recession and it needs to play out like its been played out in history. The tiny bursts in the stock market before they tank again is not the way to go. There is no stability yet and as the Asian market is now open, the first headline that is spreading is that Japan has called a recession for the first time since 2001, the first one MANY countries I am sure in the next few weeks that are going to swallow the false hope and admit that a global slow down is officially started.

In the short term as bargain hunters look for deals from the consumer standpoint, we will see some great deals on many electronic goods normally that would not be slashed in price until “Black Friday” or later towards the big Christmas date. But will consumers spend? Its a good question, with low prices there is the temptation to spend but the larger problem is the uncertainty of how long this slow down is going to linger and to what extent jobs will be lost. Many companies are on the verge of going under and it seems like nobody is safe.

Personally, as much as I want an LCD TV or a new Blackberry, I will be holding off on any major luxury items this season. Its not that I am feeling the pinch this season, but more because I can see a further reduction in prices for those that can wait. The tip of the iceberg has been exposed and as time goes on, more and more deals should come forth and I would rather invest my money in something than spend on an item that will go down in value soon.

In the stock sector, Freddie Mac (FRE) has asked for some of its guaranteed loan money as its starting to struggle with its problems and this can either be looked at as a good thing as there an infusion of money into a company, OR this can show that the government is getting closer to taking over a failing entity. I think that FRE and its FNM (Fannie Mae) counterpart might need some money and management restructuring but wont need to be taken over by the government. Both seems like good deals in terms of share price, however, a couple of months back these stocks were hitting lows of 0.30 or lower so we might see a touch at this floor. I am holding this long (5+ years) and hoping for a turn around. My buy in was around $1.25/share so I have a ways to go in terms of breaking even or making a profit.

Another thing to look at is the overnight oil price…currently its down and so this should reflect on a broader weakness in the market for the week. Last week the DOW was down overall 3.3% if any one is keeping a record.

Finally something to cheer about in this down trend market. I know many people are complaining about the “Golden Parachute” CEO’s of failing companies are getting when the exit the sinking ships they crashed but a trailblazer as emerged to buck this trend! Yes, Goldman Sachs Chiefs have opted to give these up and its bound to trickle over to other companies on Wall Street. I’m sure by weeks end there will be a unified reality check for all CEO’s that this is not the time nor place for inflated bonus packages that are being paid out on the backs of shareholders that are left holding empty bags.

Watch the headlines before the markets open and looking for some buys that might emerge. I am going to scan the lines and see what activities interest me but at present it seems like I’m holding what I have and not going to shore up. If that changes, I will certainly share.

As always, Happy Investing!

Aman, MBA

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