We turn to our government for support and guidance, but it seems all it does is disappoint us time and time again. Obama’s trillion-dollar deficit may be the feather that trips the global balance of power.

Retail stores confirmed yesterday (Thursday) what most analysts had already suspected – the Grinch stole Christmas. The huge discount programs big retailers devised to bolster sales failed to attract enough consumers to save the holiday season.

Investors are breathing a sigh of relief that 2008 is over, but they shouldn’t get too comfortable. After all, with a worldwide recession under way, investors can expect acceleration in corporate bankruptcies in 2009.

But the question is – which ones?

In the financial services sector, 2008 was a year of spectacular failures:

• Bear Stearns Cos. and Merrill Lynch & Co. Inc. were absorbed by JP Morgan Chase & Co. (JPM) and Bank of America (BAC), respectively.
• Lehman Brothers Holdings Inc. (OTC: LEHMQ) filed for bankruptcy protection.
• And financial-sector giants American International Group Inc. (AIG) and Citigroup Inc. (C) were both bailed out a vast expense to taxpayers.

If at the start of 2008 I’d written that the entire New York investment banking business would disappear during the…

President-elect Barack Obama’s transition team is reportedly putting the finishing touches on an economic recovery plan that could run from $675 billion to $1 trillion, though many experts believe the program will most like range between $700 billion and $800 billion.

It comes as no surprise to anyone who has set foot in a mall this holiday season that retailers are struggling. The Sunday before Christmas, I went to Target in the early afternoon for some last minute gifts. When I went to checkout, the express line for shoppers with fewer than ten items was empty. I walked up, put down my items, and was out the door in less than two minutes. Great for me, not so great for Target (TGT).

If there’s a proverb that captures the outlook for the U.S. economy in the New Year, it’s the one that says: “It’s always darkest before the dawn.”

Early indicators suggest that there is still some life left in the American consumer. The hordes were back out for the Thanksgiving weekend, though mega discounts means retailers will still struggle to break even. Martin Denholm says investors should stick with bargain-oriented retailers like Wal-Mart (NYSE:WMT) and TJX Companies (NYSE:TJX).

Retail experts are predicting one of the most dismal holiday shopping seasons in decades this year – a crucial stretch that will set the stage for poor retail sales throughout 2009.

Addison Wiggin and Kate Incontrera look at the implications of America’s large and persistent trade deficit. The country is dependent on foreign products for its energy, food and leisure needs. Simply put: America is consuming more than it produces.  And as this imbalance continues to grow, the long-term risks to the economy become more severe.

Survey; U.S. began recession in April; Target 3Q Profit Down 24%; Merrill Lowers 2009 Brazil Growth to 2.9%; Hong Kong Officially in Recession; SEC Charges Cuban with Insider Trading; Lowe’s Revenue Climbs; October Industrial Output Rises