The Obama administration now says the economic fundamentals are sound.

Market forces

The Obama administration now says the American economic fundamentals are sound. Last week they said the conditions had deteriorated to the worst they had been since the Great Depression. And during the campaign they mocked Senator McCain when McCain said the American economic fundamentals are sound. So how is it that things got worse and McCain was depicted as ignorant and deceptive presidential candidate but now the Obama administration is saying the same thing McCain said? We told you this would happen. We told you that at some point the Obama administration would realize that they were creating a great depression when none existed before. They were creating fear and uncertainty because they were ignorant of the history of the Great Depression and the many failures of Socialist policies then and over the last eighty years.



The Fed Chairman now says the economy will turn upward early in 2010. The volume of trading in this rally rose again to recent highs as the market turned downward again yesterday. A correction, perhaps a double bottom is in store for us this week.



Market Outlook

Asian stocks were mixed last night with Shanghai up 3%, India down about 0.9%, Japan up 3.2% and Hong Kong down about 0.8% following the American rally and then sell off yesterday.

European markets are down in the range between -0.6% to -1.3% mid way through their day following the American advance yesterday.

American market futures are currently mixed and down a fraction two hours before the market opens.