Dear Reader, 

Here’s a stat for you to chew on. 

According to the Asian Development Bank, global assets shrunk by $50 trillion in 2008.

That’s one year of global GDP growth lost. 

As a result, the global economy is likely to shrink for the first time since World War II. And trade will drop to levels unseen since the Great Depression. 

According to Claudio Loser, a former IMF director, “This crisis is the first truly universal one in the history of humanity. No country escapes from it. It has not yet bottomed out.” 

But there is a glimmer of hope… 

This from Bloomberg: 

Asia is likely to recover with “vibrant” growth once the crisis recedes in 2010, Manu Bhaskaran, the Singapore-based head of

Dear Reader,

You must be sick of hearing about the bailouts by now.

We are.

The $700 billion TARP… the $786 billion Obama ‘stimulus’…  the $750 billion placed on hold, just in case the banks need it.

But there’s another little-known bailout we’d like to talk to you about today.

Some even consider it one of the secret reasons that the U.S. bailed out GM and Chrysler.

Pensions…

GM pays out around $7 billion a year to its retired employees. And it’s set to do that for the next ten years.

A few years ago, GM had assets of over $100 billion – more than enough to cover the benefits.

But after the rout in stocks in 2008 and early 2009, it’s unlikely that GM has the money to cover its pension obligations.

If GM goes bankrupt, its pensions would be taken over by the Pension Benefit Guarantee Corp (PBGC).

Despite lower industry profits in the quarter, this leading petroleum product refiners’ margin increased 51%. Katherine Schildt of Investment U says that, “Tesoro represents a great way to keep your portfolio diversified with exposure to the energy sector.”

This from Katherine:

While most oil companies continue to report less than desirable earnings results, one refiner recently reported improved refining margins, announcing a 51% increase from one year ago.

Based in San Antonio, Tesero Corp. (NYSE: TSO), one of the leading independent refiners and marketers of petroleum products, reported quarterly profit of $97 million, compared with a loss of $40 million just a year earlier.

Yes, that’s in spite the precipitous fall in oil prices.

Other areas of the company’s operations saw an increase as well, including its operating income, which was $196 million higher than the fourth quarter of 2007. This was

Military defense spending has more than doubled since 9/11 thanks in part to the new U.S. government stimulus. And FLIR is the global leader in government surveillance systems. You don’t need x-ray specs to sense beyond the visible potential in this stock.

Katherine Schildt of Investment U tells us more here:

In part because of the new stimulus package, spending for military defense in 2009 is around $650 billion – twice what it was after 9/11. This is an early present for companies concerned with aerospace and defense.

Companies such as FLIR Systems, Inc. (Nasdaq: FLIR) – the global leader in design, manufacturing and marketing of Infrared cameras, night vision and thermal imaging systems – who posted very favorable fourth quarter earnings just a couple of weeks ago.

Revenue was $302.3 million, up 25% compared to fourth quarter 2007 revenue of $242.6 million; operating income for

Current economic conditions show positive results for the tech leader, Garmin (GRMN). Katherine Schildt of Investment U says that, “with new products on the horizon, and an obvious demand for its products, Garmin’s future is looking much brighter.”This from Katherine:

Navigation devices have become increasingly popular over the years, and the leader in the United States is Garmin Ltd. (Nasdaq: GRMN).

Shares of Garmin Ltd., headquartered in Olathe, KS, soared 17% this morning from Friday’s close, giving hope to a company that has been struggling over past few months.

Its biggest issue recently has been inventory, but it was able to reduce that by $274 million in the quarter.

“It’s a sign that they may not have to price as aggressively to move the inventory in a slower economic environment,” John Bright said, analyst for Avondale Partners LLC.

Despite poor fourth-quarter results, analysts are focusing on the past year