World stocks hit five-week highs on Tuesday on optimism a U.S. plan to purge toxic assets from banks’ balance sheets could ease the misery of the sector, but the rally also provided investors a chance to take profits.

Investing bearish right now could help protect your savings.  And just like fellow contrarians have been telling you all along, Ted Peroulakis suggests you broaden your horizons into contrarian investments like gold and silver.

“It is possible that some brainless members of the U.S. Congress may have introduced a bill that seeks to nationalize pensions, but I hope that it will not be given serious consideration, even by the liberal Democrat majority now in control.”

A few weeks ago, when the U.S. Federal Reserve announced a strategy designed to bring down long-term interest and home mortgage rates through unlimited Treasury bond purchases, government debt staged a spectacular rally.

Markets kick off 2009 with sizable rally… what’s behind the best New Year’s rally since 2003…  Obama bounce back in effect… Rob Parenteau on whether his $1 trillion plan will actually work… Dan Amoss on the difference between shorting in 2008 and 2009… Bullish factors for gold (and gold stocks) for 2009… The second wave cometh… more troublesome commercial real estate ripples on the horizon.

The dollar continues to rally…  Obama bounce picks up steam…  ECB and BOE meet this week…  Brazilian reals on a roll! And Now… Today’s Pfennig!

I thought I was dreaming when I read on Bloomberg.com that short-term Treasuries rose in market value as buyers rushed to buy them, thus “pushing rates on the three-month bill negative for the first time, as investors gravitate toward the safety of U.S. government debt amid the worst financial crisis since the Great Depression.”

If $2.8 trillion has been lost, then how much of this lost money that came into existence when it was first borrowed from a bank, is still owed to a bank? Or the shadow banking system?

The “flight to quality” continued yesterday (Wednesday) as investors pushed up the price of Treasuries on fears the U.S. Federal Reserve’s drastic rate cut means the economy’s woes are far from over.

Dollar plunges to 13-1/2 year trough vs yen, below 88… European, U.S. government debt touch fresh historic lows… Morgan Stanley’s, PNB Paribas’ losses lead stocks lower… Oil slips; OPEC’s record cut doesn’t offset demand slide