KSE support fund buys shares

KARACHI: The full amount of Rs20 billion Karachi Stock Exchange (KSE) support fund, which was set for rescuing KSE out of crisis, has now been received and the fund is buying all the selected shares.Nation Investment Trust (NIT) Chairman and State Enterprise Fund CEO, Tariq Iqbal Khan told Geo News in program ‘Tezi Mandi’ that the fund was buying shares of the prescribed eight companies and added that those advising brisk buying, why they themselves were not buying in the market. He termed the news about the fund not having received the full amount baseless and said that the market support fund’s full amount existed in the bank with full guarantee. He further said that this was the best time for buying, as the shares prices were at low-levels.

Microsoft slams broad market; bottoming continues

NEW YORK (MarketWatch) -- With even Microsoft Corp. unable to predict the future, the market is likely facing for weeks to come a steady stream of companies offering equally murky views of the year, in what analysts say is part of the bottoming process for stocks.
"You've had positive news -- Apple -- and negative news -- Microsoft and EBay -- and, while good and bad, mostly bad, the stock market has just traded sideways for about three months now," said Dan Greenhaus, equity strategy group, Miller Tabak & Co.
This, he added, "is what you see as markets enter a bottoming process."
Others see the same process happening in the broader economy.
"The difficulty for the market is on the one hand, the economic data is dismal, and we get reminded of that on an almost daily basis. However, there are some early indicators we might be in a bottoming process for economy," said Michael Sheldon, chief market strategist at RDM Financial Group Inc.
Those early indicators include mortgage rates falling back below 5%, and improvement in the TED spread, which measures financial stress, from 4.6% after Lehman Brothers went bust to around 1%, said Sheldon.
On Thursday, stocks declined but closed off session lows as investors drew some cheer from the White House, which said it would do what it could to bolster the economy.
Down more than 250 points during the day, the Dow Jones Industrial Average [$INDU] ended down 105.3 points, or 1.3%, to stand at 8,122.8.
Twenty-four of the Dow's 30 components finished with losses, fronted by Citigroup Inc. [C] , off 15.3%.
The S&P 500 [SPX] declined 12.75 points, or 1.5%, to 827.49, with financials, energy and information technology pacing losses among the index's 10 industry groups.
Telecommunication services, health care and consumer staples fared the best.
The Nasdaq Composite [COMP] stumbled 41.58 points, or 2.8%, to 1,465.49.
The finish marked a sizeable comeback from losses that followed a pre-opening jolt, when software titan Microsoft [MSFT] reported an earnings drop and said it plans to shed as many as 5,000 workers. It declared itself unable to offer a forecast for the remainder of 2009, citing economic uncertainty.
"We've been rallying since noon and rallying quite hard since 1:40 [p.m. Eastern] on the backs of financial and tech names which have come off their lows considerably," said Greenhaus, who gave Microsoft, IBM [IBM] and Ebay Inc. [EBAY] as examples.
Meantime, Apple Inc. [AAPL] pulled close to its high of the day, And in the financial space, Morgan Stanley [MS] and Goldman Sachs Group Inc. [GS] took off, "and the market followed suit," said Greenhaus.
Bucking the negative trend, Apple Inc. [AAPL] reported quarterly profit that topped expectations, with its shares rising 6.7%.
The patchy results overall -- combined with bleak economic data on jobs and housing -- had equities under water throughout the day.
Bear bottoms
Looking back at previous bear markets, the so-called 'V-shaped bottom' doesn't generally appear to be in evidence. Instead, equities fall to "whatever level becomes the bottom, then [engage in] horizontal trading" for a period of time, said Greenhaus.
Once the stock market found its bottom in 2000, it moved sideways for about 11 months, while the 1990 bear market involved six months of lateral trade, the analyst said.
Depending on the length and depth of the recession, "we could trade in this channel for two years. We have to consider the possibility that we could trade laterally for longer than most people think," said Greenhaus.
For the S&P, Greenhaus expects the trading range to be from about 800 to 1,000.
"At 740 (for the S&P), the market started to get a handle on valuations going forward, if you assume earnings going forward are $60.00, and the market tends to find a bottom at 12 or 13 times forward earnings, saying 60 times 13 is 720 - 12 or 13 times 60 bucks is about where the market found a bottom," he said.
"If you assume market is going to earn 60, 65 bucks going forward, then fair value is reached in upwards 700s. That said, if this current recession proves deeper and longer, and we have continued earnings revisions to the downside, that would further depress stock prices. That is the issue going forward, to what positive effect do these government moves have?"
To that end, Thursday's session included a Senate panel's approving Timothy Geithner to be the next Treasury secretary, with the nomination now moving to the full U.S. Senate.
"As we get closer to the confirmation of Geithner as the new Treasury secretary, that could help lift market spirits as hopes for the second part of TARP (Troubled Asset Relief Program] comes into focus along with the quick passage of the Obama stimulus package," said Cardillo.

Wall Street plunges on banking woes

NEW YORK: US stocks plunged Tuesday as renewed fears about the global banking sector offset optimism surrounding the inauguration of Barack Obama as the 44th president of the United States. The Dow Jones Industrial Average slid 332.13 points (4.01 percent) to 7,949.09 at the closing bell, slipping below the key level of 8,000. The Nasdaq composite sank 88.47 points (5.78 percent) to 1,440.86 and the broad Standard & Poor's 500 index lost 44.90 points (5.28 percent) to a preliminary close of 805.22.The carnage was concentrated in the financial sector, with Citigroup sinking 19 percent on worries it may require a new bailout or nationalization. Bank of America lost 28 percent and JPMorgan Chase 20 percent. "The current leaning indicates that Mr Obama's honeymoon period will be a short one -- it may already be over," said Patrick O'Hare on media. "It also indicates the concern that exists about a nationalization of the banking system.Those concerns hit a new level yesterday as word from the Royal Bank of Scotland that it could post a loss of as much as 41.3 billion dollars for fiscal 2008 helped trigger a new round of intervention by the UK that some believe will ultimately lead to a full-scale nationalization of RBS and perhaps the banking system in the UK," he added."After the week Bank of America, Citigroup and others had last week, similar concerns, unthinkable just 18 months ago, continue to fester here at home."

Global stocks in grip of losses on worsening economic indicators

SINGAPORE: The world stock markets this week for the investors brought losses, as the worsening data on global economy kept pouring in.Despite Barack Obama’s $825 billion bailout package announcement, US stock markets remained downbeat and both the index Dow Jones and NASDAQ declined by 3.6 percent and 2.7 percent respectively. Besides, Asian markets’ Hong Kong’s Heng Sang plummeted by 7.3 percent and closed at 13255 points, while Japan’s Nekkei-225 gaining 17 points wrapped up at 9323 points. Following Indian Satyam scandal, Mumbai KBSE Sensix-30 kept plunging and index this week falling by 5.7 percent closed at 8230 points. On the other hand European stock markets were also seen in the negative terrain and despite Germany’s announcement of $66 billion bailout package DAX-30 index tumbled down by 8.3 percent and closed at 4366, while Britain’s FTSE-100 index eroded by 6.7 percent and France’s KCAC-40 index lost 8.2 percent.

US stocks tumble on disappointing retail sales

NEW YORK: US stocks fell hard Wednesday on dismal retail sales data and renewed concerns over the health of banks. The Dow Jones industrials slid 249.37 points or 2.95 percent at the close.A darkening outlook for companies from banks to retailers to energy producers has pummeled Wall Street Wednesday. Government figures have show retail sales declined more than expected in December and concerns about troubled balance sheets are weighing on banks. The Dow Jones industrial average is down 248, or 2.94 percent, at8,200 after being down more than 300 points earlier in the session. Broader indexes are down more than 3 percent. The Dow has now fallen for six straight sessions.

Heavy selling squeezes 272 points from KSE

KARACHI: Bears came back to Karachi Stock Exchange (KSE) on Thursday, eroding 272 points from the benchmark KSE-100 Index which closed at 5,778.Investors seemed cautious in the wake of growing Indo-Pak tensions while foreigners off-loaded their holdings in energy stocks which put the market under pressure throughout the session.Trade volume shrank by 40 million shares to 400 million as compared to yesterday’s trade.OGDC was the volume leader which lost Rs2.73 to close at Rs52. KSE-30 Index plummeted by 308 points to finish the day at 5,510.

China's exports, imports drop

BEIJING, China (CNN) -- China's exports declined for the second straight month in December, a byproduct of the global economic crisis, Chinese state media reported Tuesday.
December exports fell 2.8 percent from a year earlier, while imports dropped 21.3 percent as the nation dealt with the decline in international trade and the weak U.S. economy, according to customs figures quoted in the newspaper China Daily.
Exports fell 2.2 percent in November. The drop in exports for the second consecutive month marked the first such instance in a decade, the newspaper reported.
The decline was attributed to falling demand in the United States and the European Union.

ISE annual meet elects 5 new member directors

ISLAMABAD: Islamabad Stock Exchange (ISE) in its 20th annual meeting held elected five new member directors here.The newly elected five member directors included Chaudhry Iftikhar Ahmad, Farrukh Yunus, Mian Hamayun Pervaiz, Wasimul Huque Malik and Syed Mukhtar Hiussain. However, Securities and Exchange Commission of Pakistan (SECP) would nominate the remaining four non-member directors, ISE officials told Geo News here. ISE Board of Directors comprises of five member and four non-member directors, while the 10th one is the ISE managing director himself.

Asian shares fall on miners; U.S. earnings awaited

SINGAPORE (MarketWatch) -- Asian shares were mostly lower Monday as investors looked for Alcoa Inc. to kick off an expected rough earnings season later in the U.S., and with resource stocks under some early pressure.
Trading was quiet with Japanese markets shut for a public holiday; Australia's S&P/ASX 200 was down 2% with Korea's Kospi Composite lower by 1.6% and New Zealand's NZX-50 eking out a 0.1% gain.
"A string of bad data has nipped the New Year optimism in the bud," said Bank of New Zealand currency strategist Danica Hampton; "if you look at the data last week it's pretty terrible, so people will come back this week and decide the world is a pretty gloomy place again."
Asian shares were following a decline on Wall Street Friday, which came after data showed the U.S. economy shed 524,000 jobs in December, while the jobless rate jumped from a revised 6.8% to 7.2%; also, November payrolls were revised to reflect a fall of 584,000, from 533,000 initially.

Further downbeat news came Monday with the top executive at AutoNation Inc. saying the U.S. auto dealer would cut new-vehicle orders in half for the first quarter; the company's national footprint and broad product line-up make it a key pointer for consumer sentiment on the U.S. auto industry.
Alcoa was due to report fourth quarter earnings later Monday, less than a week after the aluminum giant rattled Wall Street by unveiling a plan to cut more jobs, slash production and sell assets; the company, like other metals producers, has been hit hard by falling prices, waning consumption and rising stockpiles.
U.S. stock futures were mildly lower in screen trade.
In Sydney, mining stocks were down with BHP Billiton off 1.8% and Rio Tinto falling 3.9%; Rio said it was postponing its US$2.15 billion expansion of the Corumba iron ore mine in Brazil, "in response to the severe market downturn."
Baking company Goodman Fielder fell 5.3% in Australia after repeating it expected its first fiscal half net profit would be about 15% lower than a year earlier.
In Korea, banking and building stocks were lower again, amid concerns about their outlook; Shinhan Financial was down 2.0% and Daewoo Engineering off by 3.2%.
LG Display however had risen 4.0% on news it had inked a five-year deal to supply LCD panels to Apple Inc.
New Zealand shares were drifting in low-volume trade - the market's so quiet "it's like watching paint dry," said ABM Amro Craigs broker Bryon Burke; Michael Hill shares were 5.6% higher after falling last week on a profit warning.
In currency markets, the yen was higher on expectations for increased capital flows into the country, given measures being taken by authorities there, and given risk aversion; the U.S. dollar was at Y90.05 after falling early in Asia to Y89.93, down from Y90.30 late in New York on Friday, with the euro at Y120.57, from Y121.36 in New York.
The euro was lower, around $1.3886, with the European Central Bank expected to cut interest rates at its meeting later in the week.
Recent gains in the euro would retrace as worsening economic data would lead the ECB to cut rates, eroding the single currency's rate and yield differentials, said strategists at BNP Paribas, who looked for the central bank to ease 50 basis points; "we should not fall into the trap of expecting a higher euro/dollar on the back of rallying share prices as we see the correlation between equities and the euro reversing this year as the anticipated capital market rebound becomes U.S.-centric."
Westpac strategist Jonathan Cavenagh expected further declines in the dollar and euro against the yen; the dollar/yen "is a definite sell, it's going to head lower on the day," he said.
Spot gold was trading 35 cents an ounce lower from its New York close, now at $853.25 a troy ounce; HSBC though raised its average 2009 gold forecast to $825 an ounce from $800 previously, and lifted its 2010 call to $775 from $725, saying gold would attract safe-haven buying amid economic woes.
February Nymex crude oil was 54 cents lower on Globex at $40.29 a barrel after dropping 2.1% in New York on Friday; Jim Ritterbusch at Ritterbusch and Associates was anticipating "further slippage to the low-to-mid-$30 area with selling possibly accelerating with the approach of the February contract" expiry on Jan. 20.

Kamran Mirza elected KSE new Chairman

KARACHI: Kamran Mirza has been elected the new Chairman of Karachi Stock Exchange (KSE).A joint meeting of KSE new and old Board members held here re-elected Kamran Mirza as its new chairman, as SECP had not appointed its new non-member directors, while after one KSE director, Munir Ladha’s resignation, Amin Yusuf was elected new member in his place. Besides, the new members of the Board have assumed their responsibility from Friday.

KSE gains 69 points to close at 6143

KARACHI: Profit taking eroded morning gains in leading scrips at Karachi Stock Exchange (KSE), but 100-Index surged by 68.94 points to close at 6143.81 on Friday, dealers said.The turnover volume dropped to 145.449 million shares as 171sustained losses and 88 scrips recorded gains while 3 remained unchanged.A dealer at a leading brokerage house said that the market was bullish in the morning and Index touched as high as 6243, but slipped buy 100 points on profit taking.The market capitalization was improved by Rs 15 billion to Rs1.936 trillion.OGDC was the volume leader with a turnover of 11.342 million shares followed by PTCL 10.091 million shares, TRG Pakistan 7.484million shares, HUBCO 7.428 million shares and WorldCall Telecom 6.592million shares.D G Khan Cement closed at Rs21.33, NIB Bank Rs5.92, OGDC Rs54.02, PTCL Rs16.45, TRG Pakistan Rs2.68, HUBCO Rs17.88 and WorldCall Telecom Rs4.26.Attock Petroleum recorded the highest gain of Rs 7.93 to close at Rs166.66 followed by Millat Tractors which went up by Rs 7.92 to Rs166.51while Siemens Pak dipped by Rs 48 to Rs922 and Pak Services Ltd went down by Rs 17.92 to Rs333.22.

Mixed trends in Asian markets

TOKYO: Stock markets in Tokyo and Hong Kong experienced varying fortunes on Wednesday, with the Nikkei 225 hitting a seven-day winning streak while the Hang Seng index slid by 3.4 per cent. Much of the Nikkei's boost came from a further weakening of the yen against the dollar, which is now at its highest point against the Japanese currency since December 1st. This helped shares in exporters to advance, Reuters reported. Further speculation that Barack Obama's proposed economic stimulus package could lead the US out of recession also led to gains. Over the last seven days, the benchmark Nikkei index has climbed by 8.5 per cent - its first positive week-long run since 2000, the news agency said. In Hong Kong, shares prices fell, with China Construction Bank (CCB) and a number of telecoms stocks leading the retreat. CCB dropped by 8.8 per cent after Bank of America sold its stake in the institution. Meanwhile, China Mobile declined after Beijing awarded it a 3G licence for an untested, domestically-developed network that is expected to be more complicated and expensive to establish than proven technology being used by others.

KSE appears back on track, index breaches 6000

KARACHI: Karachi Stock Exchange (KSE) today opened positive, as the investors were seen jostling for buying and selling of shares, which saw the KSE-100 index moving upward from the beginning.The market on Tuesday, the second day of the week went on trading with high sentiments and the benchmark KSE-100 index was seen shot up by 100 points breaching the psychological barrier of 6000 points until the filing of this report.Analysts told that the economy of the country showing signs of improvement and some positive announcements of the finance advisor made the difference in the market, as the investors shedding their weariness felt more confident and started taking interest in trading.

KSE trade week begins in upbeat mood

KARACHI: Pakistan shares gained for a second straight trading session on Monday, adding 2.14 percent as investors eagerly await the launch of a government market bailout fund, dealers said.The Karachi Stock Exchange's benchmark KSE-100 index gained 123.83 points to close at 5,917.4. At mid-session, the index had gained 162 points before dropping back.Volume was 210.11 million shares, almost on par with Friday's level and near the average 250 million shares that changed hands daily in 2007, when the market was tipped as one to watch among developing economies.Shares have rebounded since Thursday's close. At that point, the market had lost 37 percent of its value since December 15, when regulators removed a "floor" imposed in August to stop heavy losses on the KSE-100.Investor confidence has been on the rise since the government announced last week that the state-owned National Investment Trust-State Enterprise Fund (NIT-SEF) would soon be launched, perhaps as soon as this week.The entity, funded by state institutions and a consortium of banks, will invest 20 billion rupees (250 million dollars) in eight selected stocks, and then resell them to overseas Pakistanis, in a bid to prop up the market.Analysts said the package could be launched at any time this week, but dealers were already in high spirits.

World stocks cheer in new-year

NEW YORK: Global stocks was seen skyrocketing at the onset of the new-year, as investors seemed bolstered and went on brisk trading. At the end of the first trading week of 2009 amid investor hopes for a brighter year ahead after a horrendous 2008 that hacked down stock markets around the world, Dow Jones and Nasdaq surged by over 6 percent and Dow Jones breached 9000 marks. Besides, Hong Kong’s Hang Seng and India’s BSC Sensix-30 rose by 6.83 percent and 6.8 percent respectively. Japan’s Nekkie-225 increased by 1.52 percent, however, China’s Shangjai index went down by 1.35 percent. European markets also remained upbeat, as Europe’s largest economy Germany’s Dex and France’s KCAC-40 surged by 6.7 percent, while Britain’s Fortse index up by 8.18 percent topped the list.

KSE-100 Index slide by 10% this week

KARACHI: The benchmark KSE-100 Index plummeted by 694 points or 10 percent this week to close at 5,794.However, the Index recovered 60 points on Friday after 38 days on reports of NIT support fund’s becoming active.The average trade volume remained 100 million shares which is 3 percent higher than last week.KSE-30 Index further lost 944 points this week to finish at 5,341.Market analysts believe that stability in the market would be seen next week if buying of stocks begins with Rs20 billion support fund.

Street looks to '09 with relief after terrible '08

NEW YORK – The last trading day of 2008 on Wall Street provided a merciful end to an abysmal year — the worst since the Great Depression, wiping out $6.9 trillion in stock market wealth. Six years of stock gains disappeared as the economy crumbled and markets crashed around the globe, shaking the confidence of professional and individual investors alike.
But the year's chaos went far beyond the stock market. Credit markets that drive lending became paralyzed, plunging the country further into recession and touching off an unprecedented rush for the safety of Treasury bills, notes and bonds. Commodities markets, usually ignored by most investors, soared on speculative buying and then collapsed when it became clear that the world economy was in trouble and that record high prices, including oil's peak above $147 a barrel, were unjustified.
"It was a feeling of flailing," said Jerry Webman, chief economist at Oppenheimer Funds Inc. "People couldn't get a grasp because there were not obvious historical precedents."
By the year's end, many market analysts were predicting that 2009 would be better, but that recovery would be slow as investors, shaken by the devastation to their portfolios, U.S. companies and the overall economy, remain reluctant to buy.
"I think this may be much more of a show-me market than we're used to. The market is going to be looking for some stabilization, increases in earnings, a few more positives before it begins to recover," said Webman.
Wall Street's stats for 2008 provide evidence of how stunningly terrible the year was:
• The average price of a share listed on the New York Stock Exchange plunged 45 percent to $41.14 by the end of the year from $75.01 a year earlier.
• The Dow Jones industrial average fell 33.8 percent for the year and 38 percent from its record close of 14,165.53 in October 2007, making it the Dow's worst year since 1931, when the country was in the midst of the Great Depression.
• The Standard & Poor's 500 index, the indicator most watched by market pros, slumped 38.5 percent in 2008 and 42.3 percent from its 2007 high of 1,565.15.
• Investors lost $6.9 trillion as relentless selling reduced the value of stocks across the market. That amount, measured by the Dow Jones Wilshire 5000 Composite Index, represented 38 percent of the total value of U.S. stocks at the start of 2008.
Yet the last week of the year was almost serene.
On Wednesday, the Dow rose 108.00, or 1.25 percent, to 8,776.39.
Broader stock indicators also rose. The Standard & Poor's 500 index gained 12.61, or 1.42 percent, to 903.25. The Nasdaq composite index rose 26.33, or 1.70 percent, to 1,577.03 and ended the year down 40.5 percent. It's down 44.8 percent from its recent peak in October; the Nasdaq's record high close of 5,048.62 came in March 2000 just before the end of the dot-com boom.
The Russell 2000 index of smaller companies rose 16.68, or 3.46 percent, to 499.45.
The tranquility was a welcome change in a year that was rocky from the start as worries about the financial system were fed by reports that banks had suffered billions of dollars in losses on securities tied to defaulting mortgages. The forced-sale of Bear Stearns Cos. in March unnerved Wall Street, yet it still managed to right itself through the spring.
The surging price of oil and other commodities dealt another blow to the market. As a barrel of crude leaped from $112 at the beginning of May to a once-unthinkable $147.27 on July 11. With retail gasoline prices soaring above $4 a gallon, stocks fell amid fears that consumers would have to cut back their spending because of higher energy prices.
But the market again stabilized — until the September bankruptcy of one of the most venerable Wall Street investment firms, Lehman Brothers Holdings Inc., set off a panic on Wall Street and in the credit markets. Banks, fearing that other financial institutions would be unable to repay, stopped lending to each other. The market for short-term corporate debt known as commercial paper was frozen. Interest rates soared.
The only thriving part of the credit markets was government debt. Investors desperate for safety poured money into Treasury issues, particularly short-term bills. The yield on the three month bill plunged to zero, and briefly to a negative return, as investors decided no return or a slight loss was better than the losses on Wall Street or in commodities.
Wall Street's crash in 2008 didn't come in one day like the famous 22.6 percent plunge of Oct. 26, 1987. In many ways it was more nightmarish than Black Monday because there wasn't a quick end to the selling and record volatility.
From Sept. 15 to Nov. 20, when the Dow fell to a close of 7,552.29, the depths it had reached in the bear market of 2002, the blue chips rose or fell by triple digits 41 trading days out of 49.
Relative stability returned to the market during December. But Wall Street's horrific performance has cast a new mold for modern bear markets, often defined as a decline of more than 20 percent, and made expectations for 2009 so low that any reduction in the economic bloodletting would be considered a victory.
"Everyone is so down in the dumps about everything that I do think it gives you the opportunity to have a positive surprise if maybe the economy does turn quicker," said Bill Stone, chief investment strategist at PNC Wealth Management.
Wall Street is hoping for signs of recovery by the second half of 2009, including evidence the housing market has hit bottom, increased lending by banks and a drop in unemployment accompanied by increased consumer spending.
But for the near future economists and market experts predict more bad news.
"I have yet to see anyone who anticipates that the first half of next year is going to be rosy," said Dean Junkans, chief investment officer at Wells Fargo Private Bank.
But even a modest improvement in the economy, which has been in recession since last December, could help stocks extend their recent run.
"If you're standing still, walking is a pickup of speed," said Alan Levenson, chief economist at T. Rowe Price Associates Inc.
The government has helped calm markets with a $700 billion rescue of the financial sector and by agreeing to provide financing to the major U.S. automakers. The Federal Reserve slashed its benchmark interest rate to near zero to reduce borrowing costs.
Cheaper oil prices — it settled at $44.60 a barrel on Wednesday — are expected to help bolster the economy, draining less money away from consumers and businesses. The declining prices of other commodities, which have come down in response to rapidly waning demand for raw materials around the world, should also help.
In addition, some analysts believe the market will improve because so many investors have pulled out, leaving little room for more selling.
"Given the nasty carnage how much further risk is there?" said David Darst, chief investment strategist for Morgan Stanley's global wealth management group.
Still, the credit markets remain nearly stagnant as banks continue to be anxious about lending.
Corporate forecasts in January could help shape investor sentiment, even as expectations are modest.
David Kelly, chief market strategist at JPMorgan Funds, said the prospects for the market are "exceptionally uncertain."
For the market to hold its advance from November he contends the calmer trading of the past month must continue and president-elect Barack Obama's plan to boost the economy with spending on infrastructure must show it is working quickly.
"The great risk is we are in a wait-and-see economy," Kelly said. "What Obama needs to do is turn this into a do-it-now economy, give people a reason to buy."