Today’s Economic Landscape and What’s on the Other Side November, 2009 Presented by: Morris Segall, President SPG Trend Advisors

THE ECONOMY

Gross Domestic Product Q1 2001 – Q3 2009 Source: Bureau of Economic Analysis

Source: World Bank The world-wide recession is over with emerging market economies led by China, India and Brazil leading the overseas recovery. For the first time in post WWII history, the U.S. and Europe are not the locomotives of worldwide economic growth. However both the U.S. and Europe are recovering in the second half of 2009 led by government stimulus programs. Barring a “double dip “ recession next year on the expiration of government stimulus programs, the estimates below of worldwide economic growth in 2010 and 2011 are likely to be exceeded, particularly in developing countries. *2007/08 data are actual Historic and Projected Real GDP Growth around the World 2007 – 2011*

Year-over-year Percentage Changes: S&P Reported Operating Earning for Listed Companies Q1 2001-Q2 2009 Source: Bureau of Economic Analysis Operating earnings reported by corporations included in the S&P 500 index. The data comes from company financial accounts and is not distorted by inventory, “write-off”, tax and depreciation adjustments. It is a truer measure of corporate profitability. Corporate earnings have fallen dramatically since the third quarter of 2007, falling 100% year/year in Q4 of 2008. Operating earnings are showing better year/year comparisons and are stabilizing but are still at depressed levels through Q2 of this year. Further improvement is expected in 2H of this year and 2010.

Conference Board Consumer Confidence 2005 – October, 2009 Source: Conference Board

Commercial Mortgage Backed Securities (CMBS): Delinquency Rates for All Private-labels* Q2 2006 – Q2 2009 Source: Mortgage Banker’s Association *CMBS issued by private entities (i.e. other than Fannie Mae, Ginnie Mae, or Freddie Mac). The percentage of loans that are 30-days delinquent. The delinquency includes foreclosed estates.

Real Estate & Consumer Loan Delinquency Rates: All Banks and Financial Institutions Q2 2007 –Q2 2009 Source: Federal Reserve Bank

Source: Bureau of Labor Statistics While inflation has declined precipitously in the recession led by the collapse in energy and commodity prices. After bottoming in July, prices are moving up, driven by the reversal in energy prices. In addition, basic services, healthcare and education prices remain stubbornly high. Changes in Consumer Price Index in Percentage Terms 2007 v. 2006 2008 v. 2007 6 months ended in July 2009 6 months ended in Aug.2009 6 months ended in Sep. 2009 All items 4.1% 0.1% 2.2% 2.3% 2.9% Food at Home 5.6% 6.6% -4.5% -3.7% -3.6% Food Away Home 4.0% 5.0% 1.8% 1.5% 1.6% Rent of Primary Res 4.0% 3.4% 1.3% 1.0% 1.5% Owners Equiv of Rent of Prim Res 2.8% 2.1% 1.4% 1.2% 0.5% Household Energy 5.3% 5.9% -13.5% -12.8% -9.4% Water/Sewer/Trash 5.4% 6.5% 5.7% 7.3% 7.2% Houshold Ops 2.2% 6.0% -0.6% -.8% -0.6% Car Repair 3.3% 5.9% 0.5% 1.5% 2.0% Pub. Transp 7.2% 1.8% -6.5% -.2% 6.1% Medical 5.2% 2.6% 3.2% 3.1% 3.6% Education 5.6% 5.6% 5.7% 5.9% 4.9% Energy 17.4% -21.3% 10.1% 12.9% 21.6%

THE GOVERNMENT’S RESPONSE

U.S. Federal Budget Deficit, 1995-2011* *2010-2011 data are projections Source: Congressional Budget Office

Overview of Where the $787 Billion is Going: Break-down of the Stimulus Dollars by Sectors Source: Recovery.gov