Capital flows to emerging markets are likely to plunge this year. And countries with low domestic savings or wide external deficits will suffer badly. Martin Hutchinson picks the five best emerging market etfs to hold in 2009.

International industrial giant ABB Ltd. (ADR:ABB) is set to generate big business as governments around the world implement economic stimulus packages. Horacio Marquez says the company’s bullet-proof balance sheet, strong margins and solid cash flow will mitigate the fallout from the global credit crisis. And its strong long-term prospects make it a great buy today.

A small article in today’s China Daily reported a startling number that revealed the true depths of China recession – giving investors pause for any near-term recovery in the country’s blistering economic growth of years past.

The breakdown of international trade is key threat to the global economy in 2009, says Chris Mayer. Several countries have already taken action to protect domestic industries, including the US with its auto bailout. If this trend continues, Chris says the global downturn could become even deeper than imagined.

A bad year…and 2009 doesn’t look much better…the worldwide financial crunch is affecting everyone… 2008 will go down as the worst year for investors of all time…who needs Smoot or Hawley? Friedman has let us down…Keynesianism causes more problems than it solves…and more!

Credit Crisis Claims $1 Trillion; Dollar Falls Hard; Gold and Silver Rally; Honda Slashes Profit Outlook; Motorola Cuts Costs; Valeo Cuts 5,000 Jobs; Woolworths Closing Its 807 Stores in Jan.; E-Trade Growing and Shrinking

This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the massive unwinding is nowhere near finished yet…

Friday FY08 Week 49: Quote of the week: Every tree and plant in the meadow seemed to be dancing, those which average eyes would see as fixed and still. – Jalāl ad-Dīn Muhammad Rūmi

Here are four thoughts to trip over as we round yet another sharp corner on the path to economic recovery.

China blasted U.S. economic policy yesterday (Thursday) at the Strategic Economic Dialogue, a two-day summit engineered to address long-term issues between the two countries. Chinese authorities have grown more fervent, and more explicit, with their criticism of the U.S. financial system over the past year, evidence of a shift in the balance of power between the nations.

Currencies rally then fall back…  Rate slashers!  Following Japan? Let’s hope not!  Canada’s woes mount…
And Now… Today’s Pfennig!