Wall Street is death by a thousand cuts with Obama depression trash talk.

Market Outlook

U.S. S&P 500 closed below 700 for first time since October 1996. The Dollar surge heightens the global financial stress.

Mesmerized by steep declines followed by mini rallies investors hang on and on and on as each month leads to greater losses and they wait and wait and wait for a recovery. But many banks stocks will go to zero and the bank sector will decline. It is death by a thousand cuts. Yesterday Obama said the U.S. economy will not turn around quickly but he said some investors may profit if they buy now at these low prices.

But what about all the people who believed in Obama and bought into the market last year thinking he actually had a plan? They are down 40% since Obama said during his campaign that McCain's confidence in the American economy was misplaced and that America was in a great depression. Before Obama's "trash the economy" depression talk… the market was down only 10% and it was a mild recession. But Obama says the U.S. economy will not turn around quickly. He does not believe in wasting a good financial crisis when there is so much socialistic expropriation (stealing) to be done.

The cash flow out of the US markets on Tuesday dropped to the pace of last week just before the plunge in the markets.

Australia's GDP shrank for first time in 8 years and Australia shares fell to lowest since August 2003.

China's manufacturing survey improved. Asian stocks rallied on hopes of more China stimulus Spending. Shanghai was up 6.1%, Japan was up 0.9%, India was up about 0.2% and Hong Kong was up about 2.5%.

Europe may break its losing streak today as commodities gained. Today European markets are presently up in a range between 1.5% to 2.5%.

American market futures are currently up two hours before the market opens.


Obama did have a plan, called socialism:

After forcing banks to take TARP money why not just change the rules now and claim the Government owns them? Bank of America and others claim they were told not to leave the room until they signed on to the TARP program. Bank of America first declined the government request that they buy up Merrill Lynch but the bank was pressured to do their patriotic duty and take it over. They then discovered the income statement was falsified so they fired the Merrill Lynch president who had given the FED the false income statements. But the government did not reimbursed the bank for losses caused by the false statements Paulson gave Bank of America.

The threat of nationalization causes investors to flee the free capitalist markets to avoid getting only a penny on the dollar from the socialists. The equities markets consequently collapse and the socialists print just enough money to give the remaining investors their remaining penny on the dollar. Then the socialists confiscate the last penny with taxes and loot the investor's bank deposit boxes to recover the hidden money and offshore money they are accused of stealing from the majority of the voters (who happen to get exempted from taxes). There is no way to estimate a bottom for a socialist Obama market. Socialism is what Jefferson feared. It is when the people who contributed nothing to society become the majority and create a big government system to expropriate from the people who in a free society produce ideas, new technology, new industries, and national wealth.

The problem is not caused by increasing taxes on the producers of American wealth but by exempting the non-produces from paying any taxes at all. Everyone should pay a least some minimum federal tax or they should not be allowed to vote. Otherwise it is possible for socialists to create an American electorate with non-taxpayers and non-producers with a vote majority leading to the election of socialist like Lenin and Hitler who promise to be modern Robin Hoods and steal from the rich to give to the majority of the voters. Ayn Rand wrote several good books on how the socialists in Russia enslaved the producers of wealth. Since the fall of communism in Europe we know now that the socialist non-producers had to pretend to work while the socialist bureaucrats pretended to pay them and the government pretended that productivity increased. Ultimately the Obama socialist promises become recognized as socialist lies and all the people are robbed of their potential because the economy stagnates.

Those of you who have traveled to Eastern Europe know they had free medical care and it was worthless. Even the socialist medical systems of Scandinavian countries do not compare with what is available in America to a broader percentage of our population. But today the socialists brazenly lie and say that American health care is inferior to that in socialist countries.

Socialism is rotten to the core because the government literally expropriates wealth from the producers to buy the support of the majority of voters. Hitler expropriated from the Jews who had the highest percentage in the top 2% of Germany's wealthy producers. Obama also is going after the top 2% and already 40% of voters in America pay no taxes at all and Obama will actually give 10% reimbursements for taxes they do not pay. That is how cities like Chicago and states like Illinois are run by corrupt political machines with fraudulent voter registration community activist groups such as ACORN where Obama learned how to win elections. That is how politicians (even Hitlerand Lenin did) learn to tell their big socialist lies and still be believed.