One might think that with the financial system in the world's largest economy in need of additional liquidity to avert a financial panic, foreign investors would be preparing similar fixes at home and/or standing at the ready to assist the United States, if needed.

Not quite.

Although central banks around the world have coordinated policies and cooperated fully, leaders of foreign governments balked at similar bailout plans, and many foreign sovereign investors also remain on the sidelines, The Washington Post reported Thursday.

While policy makers in Europe and Latin American agree that the global financial system is facing its greatest stress and threat since the period up to and after the 1929 stock market crash, they saw little need - - so far - - for major rescue packages in their own countries, The Post reported. Further, sovereign wealth funds, likewise, showed little interest in stepping up to the plate.

The world: well-capitalized spectators

Economist David H. Wang said Britain has cooperated fully, France has proposed a special G-8 summit to deal with the financial crisis, and Russia has acted to stabilize its stock and credit markets, but the rest-of-the-world is "watching the events as they unfold."

Wang said three factors are at work in the rest-of-the-world's cautious stance: national interest, a shift in the geopolitical balance of power, and posturing.

"Regrettably, but predictably, much of the world has turned inward and chosen to focus on its own domestic banks and institutions. There's also the belief, in nations like Brazil and in Middle Eastern economies, that they're more-insulated from the crisis, due to expanded non-U.S. trade relationships and the ability to undertake financial transactions and store value in other currencies, such as the euro," Wang said. "They also see the financial crisis in the context of a transition to a multi-polar financial world, from one dominated by the United States."

The World Bank cut its 2008 global growth forecast to 2.7%, citing rising food and oil prices, the bank announced Tuesday.

In January 2008, the bank predicted that global growth would total 3.3% for the year. The global economy grew 3.7% in 2007. Further, the bank now sees 2008 emerging market GDP growth totaling 6.5%, down from its earlier 7.8% forecast.

The bank called high energy and food prices "a major worry" and added that they "are the dominant force behind increased inflation across developing countries."

Also, the World Bank expects the U.S. economy to grow 1.1% in 2008, a downward revision from the bank's earlier 1.9% forecast. Meanwhile, the bank expects Europe's 15-nation euro zone to grow 1.7%, down from the earlier estimate of 2.8%. Japan's economy is expected to grow 1.4%, down from the earlier estimate of 2%.

Further, the World Bank also sees a considerable slowdown in China's economy in 2008, but GDP growth is still expected to remain very strong. The bank now sees China's GDP increasing 9.4%, down from the earlier 11.9% estimate.

More good news on the economic front to go along with Wednesday's announcement that non-transportation April U.S. durable goods orders rose on strong exports: rice future dropped to a two month low on increased global supplies, Bloomberg News reported.

July rice traded as low as $18.52 per 100 pound bag, down about 5.5% and at its lowest level since March 24, 2008. Rice has now declined about 26% since its record high in April 2008.

Wednesday's downward catalyst? Improving rice planting conditions in Asia and the United States, along with falling wheat prices in the U.S. Rice is a staple for about 50% of the world's population. The U.S. Department of Agriculture announced Tuesday that 72% of the U.S. rice crop was in good or excellent condition, up from 65% a week earlier. Further, wheat also fell to as low as $7.40 per bushel, which is 45% lower than the February 2008 record of $13.50 per bushel.

Shortages not likely

Economist Glen Langan, whose specializations include agricultural economics, told BloggingStocks Wednesday the food supply data points do not negate the two macro trends driving grain commodities higher -- rising developing world food demand from expanding middle classes and institutional investors chasing outsized equity returns -- but they do suggest one battle is being won: the battle over shortages.

Morgan Stanley has raised $4 billion for a fund that will invest in global infrastructure projects, including energy and transportation systems, the company announced Monday.

Morgan Stanley said the $4 billion in equity commitments exceeded the company's initial fund goal by $1.5 billion and "underscores the particular demand for infrastructure investment, and broadly, for alternative assets that generate long-term, stable cashflows."

Shares of Morgan Stanley (NYSE: MS) gained 67 cents to $46.62 on the news on Monday at mid-day.

In a statement, Sadek Wahba, chief investment officer and global head of Morgan Stanley Infrastructure, said the fund has investments exceeding $1 billion in enterprise value to-date.

Infrastructure spending boom

Economist Glen Langan said investment banks, hedge funds and other institutional investors are hoping to take advantage of the global spending boom by emerging market governments and corporations to build infrastructure, including highways/roads, ports, but also electricity, water and telecommunications facilities. Emerging markets are upgrading facilities -- and in some cases building new facilities for the first time -- to meet commercial and social needs as their economies develop.

Readers of this space know that my investment bias is toward large-cap companies with demonstrated business models that have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the aforementioned in mind, Caterpillar is worth a review.

Caterpillar (NYSE: CAT) is the world's No. 1 manufacturer in earth moving equipment and a leader in construction/agricultural equipment.

In general, analysts see CAT's 2008 revenue increasing 7-10% on strong international growth; North American revenue is expected to be flat.

Analysts also like the fact that Caterpillar is well-positioned to secure new business in emerging market economies for construction, infrastructure and land development work.

Meanwhile, raw material / core component costs are expected to continue to rise, limiting margin growth. The Reuters F2008/F2009 EPS consensus estimates for CAT are $6.02/$6.77.

American motorists, already stung by an 80% increase in gasoline prices in the past year, sense that $5 per gallon is ahead, and they may be (regrettably) right.

A CNN/Opinion Research Corp. poll found that 94% of respondents expect to pay $4 per gallon this year, and 78% expect to pay as much as $5, CNNMoney reported Tuesday.

The national average currently is $3.62 per gallon as tracked by the Lundberg Survey, Bloomberg News reported. Many higher-cost areas of the United States -- including New York, San Francisco, Los Angeles, and Boston -- are already experiencing prices over $4 per gallon.

Further, traders and analysts say seasonal, structural, and geopolitical factors are likely to push gasoline considerably higher in the weeks ahead -- with gasoline's upward arc lasting months, if the price of oil continues to rise.

Primary culprit: Rising oil prices

The biggest factor in gasoline's rise is the price of oil, which Tuesday topped $122 per barrel in NYMEX trading for the first time in its history. Oil is up more than 100% since 2006. In November 2001, oil traded at about $17 per barrel. Moreover, because the crude component accounts for more than 60% of the price of a gallon of gasoline, refiners have passed that added cost onto consumers.

For nearly 30 years, the rails, long neglected in the United States, were considered passé. Then the globalization era dawned, with its exports and demand for commodities. Add a price of oil that's basically risen for 10 years and the results is: the rails are back. And with the above in mind, Burlington Northern (NYSE: BNI) is worth an evaluation.

With 32,000 miles of track in the western U.S. and two Canadian provinces, Burlington Northern accounts for about 45% of the west's traffic and about 23% of U.S. rail traffic.

Analysts see 2008 revenue growth of about 6-8%, down from double-digit growth a year earlier, but still healthy. Margins should remain solid, with modest pricing power. The Reuters F2008/F2009 EPS consensus estimates for BNI are $5.92/$6.81.

Even better: like the three other major U.S. railroads, BNI is in a relative sweet spot until the United States determines its energy policy for the 21st century. Or should one say 'if the United States determines its energy policy for the 21st century.' Investors will carefully note that the value Wall Street attaches to rail stocks pretty much mirrors the price of oil's ascent, due to the higher truck transportation costs implied by a higher price of oil.

Readers of this space know that one of my preferred sectors is agriculture due to the boom in food consumption created by emerging market economic growth. Real incomes are rising in nations in Asia, Latin America and the Middle East, and with it, per capita food consumption is increasing, a trend that benefits Archer Daniels Midland.

Archer Daniels Midland (NYSE: ADM) is one of the world's largest processors of oilseeds, corn and wheat.

The frenzy that accompanied the financial world's realization that bio could represent a renewable energy form, for some energy users, appears to be tapering (thankfully). Still, although the bloom is off the biofuel rose, the key driver here remains in-place: commodities for food use. Demand for wheat, corn, soybean and other food basics is likely to remain strong through at least the end of 2009, propelled by the aforementioned emerging market growth.

Most analysts see accelerating earnings growth on strong corn and soybean demand, with pricing power. Further, given the vagaries of the energy business, it's worth underscoring that ADM is foremost a large, vertically-integrated food commodity company (wheat, corn, soybeans). The Reuters F2008/F2009 EPS consensus estimates for ADM are $2.84/$3.24.

The risks? Declining disposable income is expected to pressure U.S. consumer food budgets in 2008, and analysts expect a slowdown in U.S. revenue from food sources, something that will hurt ADM's domestic results, offset by a superior international performance.

The First Call mean rating for ADM is: Buy [10 firms]. Mean 2008 target: $48 [high: $60, low: $39].

Stock Analysis: Archer Daniels Midland is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from ADM's shares. I'd consider a Sell / Stop Loss at $31.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Readers of this space know that my investment bias is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable global trend as a support. With the above in mind, U.S. Steel is worth a review.

U.S. Steel Group (NYSE: X) is the fifth largest steel producer in the world.

Analysts expect U.S. Steel's 2008 revenue to increase 13-17%, primarily stemming from acquisitions. Further, distributor inventory levels reached unsustainably low levels in 2007, in the interpretation of many analysts, and the replenishing in 2008 should benefit X.

Meanwhile, oil producer country tube/tube-related products should remain strong, and additional steel sector consolidation should help the sector regain modest pricing power. The Reuters F2008/F2009 EPS consensus estimates for X are $10.87/$11.52.

The risks? Analysts remain concerned about rising raw material costs. A sustained global economic slowdown would hurt U.S. Steel's results.

The First Call mean rating for X is: Buy [15 firms]. Mean 2008 target: $119 [high: $134, low: $90].

Stock Analysis: U.S. Steel is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from X's shares. Note: A safer position would involve waiting for X's shares to pull back to the $110-115 range, but they may not retreat to that level. I'd consider a Sell / Stop Loss at $83.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

With the markets still in a choppy/consolidation mode (or perhaps worse), it's best to consider including a few defensive stocks in your portfolio, and with the aforementioned in mind Procter & Gamble is worth a review.

If General Electric Company (NYSE: GE) is 'the mutual fund in one company,' then The Procter & Gamble Company (NYSE: PG) is the 'consumer products aisle' in one company. Pick a brand, any brand. PG has about 300, including names you know well: Crest toothpaste, Folgers coffee, Bounty paper towels, Tide detergent, Gillette shavers - - PG's core product line contains brands that are entrenched in U.S. culture... and entrenched in U.S. consumer buying patterns.

Procter & Gamble says its mission is "to provide superior quality and value to the world's consumers," and both revenue and consumer satisfaction surveys suggest it is 'on message,' to borrow a political campaign strategy phrase.

The Organization for Economic Cooperation and Development cut its forecast for 2008 growth in its 30-nation membership to "less than 2%" -- the lowest growth rate since 2003 -- due to fallout from the U.S. economic slowdown, Bloomberg News reported Wednesday.

Sixth months ago, the OCED predicted that 2008 growth in the 30-nation zone would total 2.3%, following 2.7% growth in 2007.

The growth revision marks a substantial shift in OECD expectations. Earlier, the OECD predicted that member economies would be to withstand the U.S. economic slowdown without considerable negative consequence. That outlook, along with economic analysis from other countries, helped form the basis for the so-called 'decoupling thesis' -- where Europe and other developed countries race along unscathed by the doldrums in the world's largest economy.

A disagreement among pilots camps on seniority has led to the cancellation of board meetings regarding a potential Delta Air Lines/Northwest Airlines merger agreement, The Wall Street Journal reported Friday (subscription required).

However, independent stock analyst C. Leonard Bauer told BloggingStocks Friday that he expects the issue to be resolved soon and merger efforts to move forward.

"The pilots' seniority item is always the toughest hurdle in airline talks, so a delay and a few hiccups here is not unusual," Bauer said.

Delta's (NYSE: DAL) shares declined 20 cents to $15.93, while Northwest (NYSE: NWA) fell 70 cents to $16.12 on the news in Friday mid-day trading.

The pilot talks involve two branches of the same Air Line Pilots Association, or about 11,000 pilots, The Journal reported.

The economic landscape -- particularly for the United States -- certainly looks different than it did 30 or 40 years ago.

Globalization, the internet, and the rise of a second major economic power in Asia are all developments that would look rather odd to someone in, say, 1973-74. The world in 2008 is one characterized by economic change -- one that may usher-in even more historic political change in the months ahead.

But there has been one constant between the two eras (overlooking cyclicality): the price of oil. It was high, in real terms, in 1973-74, and it's high now. And one thing economists like Glen Langan know regarding economic conditions when oil's price is high -- it simply makes the cost of moving things, the cost of doing pretty much everything, more expensive. Whether it's dropping the kids off at little league baseball or at soccer practice, or transporting a supply chain order of refrigerators across the country, a high oil price "simply increases the cost of motion," he said. And there are few positives for the U.S. economy. Further, it takes dollars that could create spin-off economic effects -- disposable income that could be spent somewhere else -- and simply removes them from the economy.

China's central bank let the yuan appreciate slightly Tuesday night to 7.1452 yuan to the dollar from 7.1580 yuan, China's Xinhua News Agency announced Wednesday. The report also provided a hint regarding the pace of future currency appreciation.

"We will further improve monetary policy controls, continue to use quantitative measures, widen usage of price-related policy tools and increase innovation in monetary policy measures,'' the central bank said in the report, without elaborating, Bloomberg News reported.

Zhou Xiaochuan, head of the People's Bank of China, China's central bank, has said repeatedly in recent months that the yuan rate would gradually reach a "balanced" level and help bring equilibrium to the balance of payments.

At issue: The yuan

China is facing pressure on a number of fronts to appreciate its currency. Both the United States and Europe would like China, which maintains the yuan's rate in an artificially low trading band, to float its currency or at least let it come close to reflecting a fair-value rate in the years ahead. China keeps the yuan artificially low to reduce the cost of goods exported, which boosts exports sales. Both the U.S. and Europe say that rate gives China an unnatural competitive advantage in trade. China counters that it needs a low-valued yuan to increase wealth and protect young sectors of its developing economy.

Fidel Castro, whose dictatorship outlasted the nine U.S. presidents who tried to oust him, resigned today as Cuba's president. The frail, 81-year-old despot is being succeeded by his younger brother Raul, 76, potentially leading to the end of the decades-old embargo against the Communist country.

Though replacing one Castro with another one is hardly revolutionary, this could be a significant development. U.S. businesses have been frothing at the mouth for years at the idea of entering Cuba, the largest country in the Caribbean, with a population of more than 11 million. The island, which is about the size of Pennsylvania, has natural resources including petroleum, nickel and iron ore, according to the CIA's World Factbook.

Though Deputy Secretary of State John Negroponte told reporters that he doesn't expect the embargo to be lifted anytime soon, that position may not hold over the long-term because the Cuban market is too large for U.S. companies to ignore. You can bet that the Europeans and Canadians would love to expand their foothold in Cuba if America drags its feet.