ISM Non-Manufacturing data will show the service side of the economy is steadily growing but small business are slowly contracting
Peter Oberois
Feb. 4, 2007

The increased ISM Non-Manufacturing data will be the reason for joy in the stock market. But something very interesting is happening behind the scene. The small businesses are losing hope. They have started contracting their future expansion plans.

Small business confidence is falling rapidly. Large businesses feed of small business in the economic food chain. The easy credit and liquidity is the sunlight. The Sunlight is first step in the food chain. If the sunlight goes, so does all forms of life. If the small businesses fall apart, the large businesses feed from their reserves for a while and then start perishing. That is exactly what has started.

The small business contraction especially in tech sector is manifested by the lack luster performance of Nasdaq market place. The small companies have started throwing their towel in the ring as the liquidity slowly disappears.

Real estate investors are funding their mortgage, real estate taxes and fees from additional borrowing from their credit card and taking personal loans. That can come to an abrupt end after the second round of real estate crash later this year in Fall 2007.

The loss of liquidity will eventually collapse the fate of small businesses. The economic food chain will then be shut down. The large businesses will fall apart. Dow will fall below 5,000.

Another good investment now is basic raw materials for food processing industry – look at the commodities and stay away from the stocks
Fred Day
The prices for raw ingredients for food will rise sharply. The chart patterns are clear. The prices of grains, the meats, milk, eggs, sugar, cocoa and other raw materials for the food processing industry are on the rise.
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ISM Non-Manufacturing data will show the service side of the economy is steadily growing but small business are slowly contracting
Peter Oberois
The increased ISM Non-Manufacturing data will a reason for joy in the stock market. But something very interesting is happening behind the scene. The small businesses are losing hope. They have started contracting their future expansion plans.
READ MORE>>

Falling wages, sub par employment, productivity rise and disinflation are signs of deflation – stocks and gold have trouble ahead
Sam Adelton
The heavy public and private debt burden will make deflation ugly like never before. The Federal Reserve loses control over the monetary policy once deflation starts.
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Best investments for the next ten years – Domain Names, Farm Land and Cash in the Bank
Special correspondent
If one does not want to get involved in Domain names or Farmland, the other choice is keeping cash in the bank. Smart people will try their best to get debt free and then keep their cash in the bank in CDs.
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If you believe oil will go up or stay up, you should buy sugar 11 futures contracts
Peter oberois
The sugar (11- international) is trading like the crude oil. Since Brazil has converted most of its sugar infrastructure to ethanol and the same trend has started in India and elsewhere, sugar is in shortage worldwide.
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The clowns are back again – Democratic Presidential hopefuls start getting at each other with little hope to win the White House in 2008
Special Correspondent
The main street have started calling Hillary – the Chic. They cannot understand the name difference between Osama and Obama! Dude, Obama is no Osama! He is the Senator from Illinois!
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