Toxic bank bailout plan to be announced today

Market forces

Today we are beginning to see the Obama administration and their big media glad handlers finally realizing Americans no longer accept their blame game. The bush administration never blamed the 2000 stock market dot com bubble burst on the Clinton Administration even though the markets peaked in March of 2000, eight months before the Bush election and were falling rapidly by November 2000. Unemployment was skyrocketing before the Bush inauguration. Yet President Bush was blamed for that recession and they tried to blame him for the 911 terrorist attack that was planned during the Clinton administration. In fact no one blamed president Clinton for the first terrorist truck bombing of the World Trade Center, the Janet Reno Wako massacre, or the Oklahoma bombing, all of which terrorized Americans. Nor did they blame him for the Dot-Com bubble. We had eight years of no terrorism since 911 and socialists give Bush no credit. Obama said he put us at higher risk.

So the world now welcomes the news that the Obama Administration has finally decided it is time to stop blaming others and do something about the Senator Dodd/Senator Rangle Banking Committee toxic junk mortgage crisis that the Democrat/Socialists created to give ineligible people houses.

The Obama Administration plans a $1.8 trillion deficit the first year. That is 350% more than the maximum deficit the Bush administration ran up during its eight years. In fact the Obama Administration has now planned over $9 trillion in total deficits to establish socialist control in America. It will cost more than Americans have spent in total from first President George Washington until today.

But the socialists around the world are rejoicing since they too have spend their countries into intellectual and economic poverty and this debasement of America will flood the world with cheap dollars so the failing currencies around the world will get a boost.

We expect the market will do well initially because the Obama administration is finally addressing the toxic mortgages. However, the damage the democrat socialists are doing by throwing money at problems will come home to roost.


Market Outlook

Asian shares were up last night with Shanghai up 2%, India up about 5.1%, Japan up 3.4% and Hong Kong up about 4.8% following the decreased American buying Friday.

European markets are generally up in the range of up 1.4% to up 1.8% mid way through their day.

American market futures are much higher again today before the market opens. The initial expectation is that Geithner will say there is actually very few toxic mortgages that have not already defaulted and so the worst is already over. However, another sell-off is expected in a few weeks when the world realizes the pork barrel socialist medicine is poison to American intellectual and economic survival and the world's capitalist growth engine is being dismantled and sold off to provide for the new socialist state.

As the ideas of democrat socialism sink in, people will see there is no benefit under socialism for owning stocks because the stock market is used to generate capital for dwindling capitalism. Under socialism, taxes are used to generate the money for government control of everything. Ultimately the stock market will implode again as capitalism winds down and the effects of socialism, cronyism, groupthink, corruption, and "Ironweed" type politics stagnate the world economies.

The American economic engine of capitalist innovative creative destruction is all the world recently has had. But the socialists are about to kill and feast on its carcass just as all the great socialist economic cannibals did with capitalism in the past. That is the toxic plan of socialism.