General Growth Properties Facing Bankruptcy; Macy’s Cut Capital Spending 45%; Oil Futures Dip; China Retail Sales Soar; Yum Restructures; AB Shareholders Approve InBev Merger

William Patalon III says the US economy is heading into recession and there is little the Fed or Treasury can do to stop it.

But that doesn’t mean contrarian investors can’t make a profit. History is littered with examples of investors that made a fortune during the darkest days for the economy.

William has a four-point plan to beat the bear this time round: 1) Load up on high dividend stocks; 2) Buy gold; 3) Stick to ‘global titan’ companies; and 4) Stay relaxed…

The economic calendar this week isn’t particularly exciting, but coming off the pain inflicted on the markets last week, that could be a good thing. The market will have its hands full with earnings season starting up again, so a full week of reports could have been dangerous.

Wall Street is on its knees, and the taxpayer is on the hook for well over a trillion dollars to prop up the financial system.

Meanwhile, the wider US economy is sliding into a recession.

William Patalon III says there are four solid ways to protect your portfolio from these forces: 1) Buy dividend-paying stocks; 2) Buy gold; 3) Buy companies focused on overseas market; and 4) Don’t panic…

Investors who abandon China now will live to regret their decision, says William Patalon III in Money Morning.

William says every successful investor needs a China investing strategy, despite the fact that China’s benchmark index, the Shanghai stock index, is down 56% so far this year.

Following Jim Rogers’ bullish comments on China in a recent exclusive interview with Money Morning, Bill gives six reasons to invest in China and five solid China profit plays.

The world’s largest credit-rating companies say mortgage lenders Fannie Mae (FNM) and Freddie Mac (FRE) have bullet-proof Aaa credit ratings. But Bloomberg says derivatives traders are treating the discount mortgage brokers as if they are rated five levels lower.

And, ominously, the price of contracts used to speculate on the creditworthiness of Fannie Mae and Freddie Mac and to protect against a default doubled in the past two months.

What about the government’s implied guarantee of the debt held by the companies? It seems investor confidence in short supply.

Editors Note:  Money Morning’s Investment Director Keith Fitz-Gerald says increased wealth and Western influence are having a major impact on the local diet in places like Japan and China. As a result, people are getting bigger. As obesity becomes a social issue, companies will be scrambling to join the new health movement. This, says Keith, will create great opportunities for investors…

With a wheezing economy that’s struggling with housing and credit problems - as well as a weak dollar - it’s clear the United States won’t be in the investment spotlight this year.

There’s an old adage in business that big contracts command big headlines. But bigger isn’t always better. All too often, companies that focus only on big contracts discover there are very lean stretches between contract awards. And that affects the predictability of their earnings.

Citing the global inflation epidemic as a key threat to growth, JPMorgan Chase & Co. (JPM) made double-digit cuts to its 2008 stock index forecasts for several major Asian economies.