Morgan offers $2 for Bear

JPMorgan Chase said it would buy stricken rival Bear Stearns for just $2 a share in an all-stock deal that values the fifth-largest U.S. investment bank at the center of the credit crisis at about $236 million.

The takeover, which has the backing of the Federal Reserve and the Treasury, underlines the risks banks and financial companies are facing as the U.S. mortgage crisis deepens, while the rock-bottom price -- more than 90 percent below its Friday close -- raises questions over valuations in the banking sector.

More on this story at http://bearstearn.blogspot.com/

The Falling Dollar--Should You Care?

Last week, the dollar fell to new lows. Looking back at the past 30 years, the dollar seems to be moving in a pattern with its historical cycles. The chart shows the Trade-Weighted US Dollar Index on a 12-month moving average, since 1975. While on the downtrend, the dollar is still higher than it was in the mid 90's and the late 70's. Those periods followed with significant rises in the dollar. So should we be concerned?

What typically happens with this trend is US citizens spend more for foreign goods, but the demand rises for US exports. Why? The US dollar, because of its falling value, buys less overseas. Where a single dollar once bought a full dozen, 12, it now only buys 10. So, the value we get for one dollar reduces. However, those US products and services that normally sell big oversea will sell even bigger, because foreign currency gets more value than before. It is almost like a big sale at your favorite store, you would probably take advantage of the extra sale prices.

In addition, there is a almost perfect relationship between import prices and inflation. As imports continue to rise, so does the CPI (consumer price index), which is an index number measuring the average price of consumer goods and services. This is when patriotism knocks on the doors of us all and we must begin to balance our consumption and spend our dollars in markets where it is stronger for the US. On a brighter note, history shows that when this happens, the US dollar rebounds strongly.

Going Green can make Green

Jackson Robinson's Winslow Green Growth Fund is up an average of 20.5 percent per year over the last five years.

Winslow Green has suffered some recent setbacks, and Robinson admits it's filled with small-cap stocks that tend to move dramatically in volatile markets. But he has confidence that well-managed, solid companies will eventually be positioned to thrive.

His first choice is LSB Industries LXU

"This is really a geothermal heat pump disguised as a chemical company," he said. "Geothermal is capturing the heat that's five or more feet under the earth, and using it to pre-heat or pre-cool water in homes or commercial...industries...these guys have been doing it longer than anybody else, and they're by far the market leader."

Robinson also likes First Solar FSLR

He does not own either stock personally, but his firm owns them in its mutual funds.

When looking into the future of the stock market, things are going green. These companies are both on the frontline of natural energy and can soon show a strong progress as the world looks away from the growing concerns of oil base energy.

Both stock are priced at approximately $20 as of the date of this article.

Oil Steadies after Hitting Record Near $106

Oil steadied after hitting a new high near $106 on Thursday as a weak dollar helped prices to extend the previous day's gains prompted by a drop in U.S. oil inventories and OPEC's decision to keep output unchanged.

"The crude squeeze continues. The sharp rise in crude was exacerbated by a weak U.S. dollar, OPEC's decision to stand still," Citigroup said in a research note.

The dollar fell to a record low against the Swiss franc and hit a fresh trough against the euro on Thursday.

On Wednesday, U.S. crude had settled $5.00 higher after U.S. Energy Information Administration data showed a 3.1 million barrel drop in crude stockpiles, against analysts' forecast for an increase.

Distillate inventories, including heating oil, fell 4.8 million barrels, dropping for the fourth consecutive week as colder weather boosted heating demand in the U.S. Northeast.

Gasoline stockpiles rose again to another 14-year high.

Citigroup said that U.S. crude and product stocks altogether fell 4.5 million barrels, while a seasonal norm for this time of the year was a 3.3 million barrel drop.

Warren Buffett Named World's Richest Billionaire By Forbes

Posted By: Alex Crippen

Warren Buffett is now the world's richest person, topping the just-released Forbes 2008 list of global billionaires, with an estimated wealth of $62 billion.

He bumps Microsoft's Bill Gates from the number one spot, a position Gates held for 13 consecutive years.

With help from Berkshire Hathaway's best year in over a decade, Forbes estimates Buffet’s wealth increased by $10 Billion from the $52 billion that put him in the number two slot of the magazine's list last year.

It's the second year in a row Buffett's wealth has jumped by $10 billion, even as begins to give away lots of money to charities, notably the Gates Foundation.

Gates falls to number three this year with $58 billion, behind Mexico’s Carlos Slim, who is number two with an estimated wealth of $60 billion. Forbes says Gates would have been "as rich -- or richer -- than Buffett" if Microsoft's stock hadn't dropped sharply after it unsolicited bid for Yahoo last month.

Myths About Mind and Mood Revealed

By LAUREN CAHOON ABC News Medical UnitMarch 6, 2008

Fact or Myth? "I'm in my twenties -- I don't have to worry about getting depression until later in life."

Actually, those who are in early adulthood do need to watch out for depression.

"The age of first onset of depression is far younger than we used to believe," said Myrna Weissman, a psychiatrist at the New York State Psychiatric Institute and a participant in the OnCall+ Depression resource section of ABC News.com.

"Major depression has the highest risk of developing between the ages of 15 and 34," Weissman said. This finding goes against the common school of thought -- that middle-aged adults and women going through menopause are most at risk of developing the disease.

However, several large-scale studies found that the most common period of life for depression to develop was the beginning of adulthood, not the middle of it.

Why is the School System in Trouble?

by Lawrence Wilson MD

Two prominent economists were recently asked what is the greatest challenge facing America. Both agreed it is not the budget deficit or health care, but the decline of the American public school system. Costs are higher and academic performance lower than most other industrialized nations. Also, dropout rates in some areas reach 20-30%. I will divide the discussion of our schools into three parts: 1) outside influences, 2) philosophies and methods, and 3) an inflexible structure.

More on this story at

http://schoolsystemintrouble.blogspot.com/