Desperation in the spin zone

The administration is currently more worried now about the stock market than the swine flue. Why can’t it get priorities right? Before... it didn’t worry about the market because it did not know that working Americans had 401 plans invested in the market. Now MSNBC (Obama’s Pravda) tells us it all makes sense that junk stocks advance while good stocks take a hit. They say the facts and basics don’t matter... it is all market psychology now because now people believe the economy is getting better so the junk stocks look like they can survive. As evidence MSNBC incorrectly says the housing market has stabilized!!

In a sense Jim Cramer is right; housing is in a stable nose dive right now. While MSNBC points to the fact that the year to year decline in housing prices is the same this month as it was last month the MSNBC wizards don’t realize that is because they are dropping at the same 24% per year rate (2% per month) now as they were last year.

That is right, even Jim Cramer apparently wants Americans to think housing prices have stabilized when in fact the housing prices are falling at 2% per month. That is how (through the spread of ignorance) Pravda (MSNBC, a General Electric subsidiary) creates lies (spin) to curry administration favor and lucrative global warming related contracts. In the MSNBC spin zone they don’t care if the spending is for the stimulation of socialism and the undermining of capitalism so long as the father corporation gets a big piece of the action.

Wall Street has its own scam going on now lead by MSNBC. Little known junk stocks are being bought up in old fashioned short seller sucker rallies to lure in people who “know the stocks are worthless.” They draw in wave after wave of short sellers who do not realize that there a big con artists out there willing and able to buy up all the small company’s stock and then make it almost impossible for the short sellers to buy back the stock except at much higher prices. The high prices then attract even more short sellers the longer the scam goes on.

MSNBC is not in the news business it is in the scam business and the spin business and today may be the day they start throwing dirt on the coffin of Bank of America. Bank of America was the classic Harvard Business Case that MBA students recently studied on how to run a good bank. Now Obama, MSNBC, government employee unions, and Democrat state treasurers have united to run BOA into to ground by:
1) first the FED forcing BOA to take Tarp funds, then
2) forcing BOA to buy Merrill Lynch, then
3) attacking BOA management for revealing they were coerced by the administration, then
4) threatening prosecution of BOA management for violating government SEC disclosure rules by allowing themselves to be coerced by the Obama administration in the first place, and
5) spreading rumors that the Obama administration stress test says BOA is undercapitalized and as weak as the CITI disaster case, and finally
6) using state taxpayer funds and union pension funds today to try to vote out the BOA management that made BOA an American Harvard Business Case success story.


Market forces April 29

The deflationary forces are currently at their greatest rate of worsening but the steepness of decline is no longer getting steeper. The GDP deflation rate is expected to peak at -2.8% in November 2009. Currently housing prices are falling at a stable 24% per year independent of the rate of decline in American production. Barack Obama “malaise” expands the arrogant usurpation of American liberties by big government using junk science, junk stocks, and junk socialist economic policies. Beware, we were in a recession no worse than 1982 but this administration has an FDR type plan just like the one that created FDR’s Great Depression. An “Obama Great Depression” could leave the stock market down 90% like the last one. We are not even half way down yet. Obama can still wipe out our insurance industry and pensions just as FDR did.


Market Outlook

The equities market is highly oversold and junk stocks have become the big movers as investment con artists and MSNBC spin junk economics, junk science, and junk stocks. The recent advance has had no breadth and junk stock leadership. The stimulation package is only stimulating big government spending, big government hiring, and community activist con artists out there claiming they are helping people with high debt difficulties.

Unfortunately big government:
Likes to usurp power and dictate to people and business
Likes to regulate individual lives
Becomes an arrogant bully and wants unions and binding arbitration for itself for power
Is extremely difficult to stop once it takes root.
Defines love of country and healthy values as hate and politically incorrect
Big government is an invasive species that destroys all healthy growth, ethics, and societal values.

Asian shares were up last night with Shanghai (China) up 2.8%, India up 3.7%, Japan market closed and Hong Kong up 2.7%.

European markets are currently up in the range of 0.8% to 1.3%, mid way through their day today.

US futures indicate the American markets will start the day up slightly.