Last night Asian markets were mixed again with China up 1.8%, India Up 0.7% and Japan down 0.3% with concern over Obama apparent administration meltdown.
At the moment European markets are mixed ranging from, -1.7% to +0.8%
The US market futures indicate a lower opening level with the stimulus package not passed yet and with the scheduled "Toxic Bank" unveiling of Treasury Secretary Timothy Geithner's today. We expect financial stocks will someday get a big boost under the new plan. That will help the entire stock market and economy.
Good luck on your investment journey.
On the disappointing side.
Obama is now arguing with radio commentators such as Rush Limbaugh indicating some kind of an administration breakdown is taking place. The immediate effect is to cause investors to question his administration's ability to oversee any community activist economy much less a national economy. The fear mongering could eventually create a depression if it does not stop.
ACORN, the Chicago group that registers people and cadavers multiple times for party line voting gets $4.19 billion from Obama’s toxic stimulation package. Republicans cut a similar disgraceful slush fund from the original $700billion TARP bill last year but this time the Democrats have the majority to do whatever they please. How does stimulating Illinois con artists from ACORN help the economy? ACORN claims it is not illegal to register people to vote multiple times at different places if they don't actually vote multiple times. They say it is only illegal if they get caught. ACORN sent hoods that got arrested last November on election day when they stood at polling place doors and intimidated the 80 year old retirees who worked at the polls as voter identity checkers.
If Acorn were a large sized Chicago group with say 1000 members each member would be getting $4.19million from the toxic stimulation package for having registered voters for Obama. They are a completely Democrat political action committee getting taxpayer dollars. But they don’t even have 1000 members. How much of the stimulation package goes into a political slush fund for 1010? If Obama demands this nonsense we can only hope no republicans or independents vote for this because corruption is based on the idea that everybody has to do it and corruption always wants total complicity so nobody can point a finger at anyone else. They should take that 4.17 billion and give it instead to the FBI to investigate toxic Stimulation Package related corruption. The biggest joke going around now after three cabinet members were caught cheating is that Democrats do not support tax cuts because they don't pay taxes. But that is not funny. Forty percent of eligible voters do not pay taxes and that block of voters now controls the House, Senate, and President. China said they would no longer support American deficits by buying toxic US treasuries.
This is no stimulation package; it is a toxic inflation package three times worse than what Jimmy Carter left to Ronald Regan. Ronald Regan had to quell a 16% inflation rate that Carter left him. Who is going to be able to quell a potential 48% inflation rate that Obama leaves behind? These bubbles then explode and become deflation cycles that are growing larger and more unstable each time.
The Bush tax cut deficit was needed to avoid a financial crisis caused by the Dot-Com bubble that popped in 2000 and the 911 attack in 2001 and we funded by money from American consumption of China's products being reinvested in America by China.
This new 2009 toxic-spending package will be just as toxically wasteful as the recent uncontrolled diversion of taxpayer money by Rangle and Dodd to people who never paid taxes but got toxic home mortgages at taxpayer expense.
The Rangle/Dodd toxic mortgage scheme caused our current financial crisis and the 40% of Americans who don't pay American taxes elected the current administration and will get the new toxic federal handouts just before 2010 election.
The current administration won election with irresponsible "depression talk" that frightened people who started to believe them. The stock market has already discounted a depression. The current administration continues "depression talk" to divert more taxpayer money which will become available mostly in 2010 after the recession is over but just in time for elections. We are witnessing the wholesale corruption of the American political process.
But America is still strong and resourceful and the market already capitulated in the plunge that began with the election of this administration. Recovery will likely occur before the end of 2009 in spite of this administration. We will profit from putting our grandchildren further into debt. We expect the current rally to continue and the inflation caused by this administration probably will not be felt until 2011 after the toxic stimulation-spending package takes effect. Right now the stock market faces risks every time Obama and his adinistration opens their mouths.
Layoffs are already plunging this month for reasons explained yesterday… and that would be good news coming out in just three weeks. People who are gullible enough will credit the new administration for the improvement.
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