Yesterday Hasbro, Inc. (HAS) reported 2009 fourth quarter and full-year results.

For the fourth quarter 2009, the Company reported net revenues of $1.38 billion, an increase of $144.1 million or 12%, compared to $1.23 billion a year ago. 2009 fourth quarter revenues grew 7% excluding a $55.4 million positive impact of foreign exchange. The Company reported net earnings for the quarter of $165.6 million or $1.09 per diluted share, an increase of $72.0 million or 77%, compared to $93.6 million or $0.62 per diluted share in 2008.

The strong results in a bad year support my contention that today's stock market, even in these uncertain times, does have plenty of bargains.

This morning the big news of the day was the drubbing of European stock markets as fear spread throughout the region. Fear was generated by concern that some European countries could default on their sovereign debt. Among them are Greece, Spain, and Portugal.

Greece's budget gap is 12.7% of GDP Greece has to slash spending and may need IMF assistance.

Investors sold investment deemed risky such as commodities, gold and stocks and moved their money into bonds. This started a selling frenzy in commodities with oil falling $3.14 per barrel to $73.14 per barrel. Brent crude fell $3.79 per barrel to $72.13 per barrel.

Congress is patting itself on the bank for making a few minor changes in credit card costs, including:

• Starting in February, card statements will include the amount of interest and fees paid for the year to date.
• The statement will include the size of monthly payments needed to become debt free in 36 month.
• Card companies will give cardholders 45 days before changing the interest rate.

Why are these such minor changes? First, according to Kapner writing for Financial Times, the average American household has $10,000 in credit card debt. At a rate of 18%, it would take 48 years to become debt free by just paying the minimum each month.

January is the time for predictions. The stock market is a favorite arena. Stock analyst Michael Browne of Sofaer Global Research has changed his stance on the U.S. stock market. Bank in March 2009, he accurately predicted the start of a bull move in stocks.

Now, however, he says the bull move is over and is recommending that investors take profits. When asked if he was bearish, he said: "Am I bearish? no, but I am no longer a bull."

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time. The decision was not unanimous with one dissenting vote.

The Fed continues to avoid any potential language which could disrupt the financial markets. Chairman Bernanke, a student of the Great Depression, does not want to do anything to damage the current stabilization in the economy. This is particularly true with a controversial vote on the Chairman's confirmation coming soon.

Sales of existing homes plunged 17% in December, the sharpest drop since records began in 1968. The sales pace fell to 5.45 million annual rate from 6.54 pace the previous month.

Part of the reason for the drop was attributed to the termination of the first $8,000 tax credit for first time buyers. That kept buyers away from the market. Since then Congress has extended the tax credit. Realtors expect a pick up in sales going into the Spring season.

Now here's an eye opener. Warren Buffet's Berkshire Hathaway (BRK.A) has decided to split its shares 50 for 1. This would drop the price of the company's cheapest stock down from about $3,247.00 per share to $65. The class A shares, never split, still trade at about $97,500.

Bill Gross is one of the world's biggest investors. In his recent monthly letter he cites the dangers of ultra high deficits in the US.

But first, we must cite Gross' comments on the state of our democracy. He said: "Our democracy does not work anymore, or perhaps more accurately, when it does, it works for special interests and not the American people." "When special interests even singular citizens write a check, it represents a perversion of democracy, not the exercise of the First Amendment..."

Here's another priceless quote: Referring to the money spent by health care lobbyists, he said: "What amazes me the most of all is that politicians can be bought so cheaply."

The minutes of the recent Federal Reserve Meeting showed a continued concern over housing. Some members of the committee favored continued purchases of mortgage backed securities. The Fed is scheduled to end its purchase of $1.25 trillion of mortgage backed securities by the end of March. Those in this group held that pulling the plug in March was too soon.

Some members were comfortable with the current stabilization in the housing market and argued that ending the program was the right policy move. Fed officials said that in general, they see continued improvement in the housing market going forward.

On Friday federal rules take effect that require mortgage lenders and brokers to give consumers better estimates of the many costs that can vary widely, increasing the total cost of your purchase.

Here are a few of the hidden costs to look for:

• First, we have the "origination" charge. That is a fee for preparing your paper work. That can vary from lender to lender. One lender may charge $500 and another may charge $750, etc.

Rising office vacancies and plant use rates are close to a record low. Under these conditions it is easy to see why there is little new construction. Maxwell Clarke of IDEAglobal Inc, said: "Construction isn't going to be adding a lot of growth, at least through the next quarter or so. November's construction numbers are down 13% from a year earlier."

Add to this the fact that the commercial default rate on mortgages held by US banks doubled to 3.4% in the third quarter. Defaults in the first nine months of 2009 are the highest since 1993.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time. The decision was unanimous.

The Fed continues to avoid any potential language which could disrupt the financial markets. Chairman Bernanke, a student of the Great Depression, does not want to do anything to damage the current stabilization in the economy.

Charge offs are rising among our largest credit card companies, up 8.81% in November, from 8.02% in October.

Here are specific bank reports:

• For Capital One (COF), charge offs rose to 9.60%, from 9.04%
• Capital One expects its charge offs to peak early next year.
• Discover Financial Services (DFS) rose 8.98%, from 8.54%.
• Bank of America (BAC) had the largest charge offs at 13%, down a tad from 13.22% in October.
• Bank of America late payments rose to 7.69% from 7.59%.

In the wee morning hours just prior to the market opening I had given some thought to shorting AOL Inc. (AOL) on its first day as a newly independent company. Yes, that same company that owns Bloggingstocks.com and a multitude of other interesting Internet "content" icons (and some not yet so). However, I did not do it because it would have been too impulsive and that is rarely a good investment strategy.

I was stunned that we changed our logo. And we changed it to what seems like a team of logos instead of one. That seems bizarre to me if you're trying to build a brand. It is also ironic since we are planning on making money on advertising, and we will be muddling our own brand.

US Treasury Geithner wants to protect his turf. He sent a letter to Nancy Pelosi and Senate Majority Harry Reid extending the Troubled Asset Relief Program (TARP) until October 3, 2010, keeping $550 billion in bailout funds.

His letter states that: "The extension is necessary to assist American families and stabilize financial markets because it will, among other things, enable us to continue to implement programs that address housing markets and the needs of small businesses and to maintain the capacity to respond to unseen needs."