MSNBC/GE (America’s PRAVDA) helps influence government contracts

Market forces April 27

MSNBC/GE (America’s PRAVDA) helps influence government contracts.

Jim Cramer works for MSNBC which is owned by GE. GE is the only American company that owns a network that can use its reporting to influence government contracts. They can influence the Secretary of Defense to cancel contracts of GE competitors such as UTC. The raptor is America’s most advanced stealth fighter (the F22) and Pravda has convinced the Secretary of Defense to cancel it. Lockheed and UTC make the Raptor. Boeing favors GE and is a competitor of Lockheed so Boeing gets special treatment from MSNBC too. The MSNBC pressure against the Air Force tanker was also about benefitting the cozy GE-Boeing arrangement. The GE/MSNBC unholy control of the Obama administration should be broken up before Americans are defrauded more by MSNBC-PRAVDA.

Most military men want to puke listening to GE’s MSNBC drooling over Obama and prospective witch hunts as Obama labels our Navy SEAL under water training as torture when applied to terrorists. The Puritans had the original witch hunts and they also used dunking stools (water boarding). In fact every kid who has been ducked in a municipal or school pool has experienced Obama’s torture of water boarding. So by all rights Obama should close all American swimming pools if we want to stop that form of Obama torture. Some times a kid even drowns as a result of it.

Jim Cramer reversed himself three times in three consecutive days. On Friday he became a Bull again and also supported gaming stocks. In the previous week he was disparaging gaming stocks but on Friday those stocks soared upwards in price so he quickly changed his tune and claimed he recommended gambling stocks three weeks ago.

Jim Cramer’s method of speaking out of both sides of his mouth works well for himself but is a disaster to those who follow his recommendations. If the market collapses today he can say he picked the top last Thursday. If it goes up he can say he say he predicted that last Wednesday when he was in Ohio. It sounds like Cramer is auditioning for the Obama administration or GE president. First Obama says Bush gave us a depression, then he takes office and the depression by his definition ends. Jim Cramer then agrees the depression is over. No Jim, the administration is the depression and we have at least 1.5 more years to worry about that. And it could last 10 years as it did in Japan.

Market Outlook

Martin Capital says the S&P PE ratio is now 58, not below 10 as MSNBC says. MSNBC (America’s PRAVDA) does it wrong. MSNBC ignores companies that are losing money because their PE is negative. Martin Capital uses the weighted S&P price and divides it by the weighted S&P earnings to get the true weighted S&P PE which is now a very high 58 because earnings declined faster than stock prices. See:

http://www.martincapital.com/chart-pgs/Pg_per.htm

The U.K.’s former Treasury adviser Roger Bootle said the U.K.’s recession will last through the end of 2010 similar to the USA as house prices drop in an economic slump increasingly resembling that of the 1930s. In the USA commercial mortgage foreclosures are now accelerating as banks are left owning empty shopping malls.

The Group of Seven finance chiefs’ said the ability to handle banks’ toxic assets will determine the strength of the economic recovery, The U.S. government and the Fed agreed to spend, lend or force down bank’s throats $12.8 trillion to end the longest recession since the Great Depression. From the stock market standpoint the Dot-Com bubble recession started under Clinton with the market drop in March of 2000 and was not considered over until March stock rally of 2003 under Bush. The mortgage derivative bubble recession from the stock market perspective began in November 2007 under Bush and if it is only as long as the Dot-com recession the stock market would bottom in November 2010 under Obama. But that would also mean that this recession is no worse than the last recession. In any event it is evident that we are seeing only a bear market rally now.

Asian shares were down last night with Shanghai (China) down 1.8%, India up 0.4%, Japan up 0.2% and Hong Kong down 2.7%.

European markets are currently down in the range of -0.9% to -1.9%, mid way through their day today.

US futures indicate the American markets will start the day down again. As of 6:45 a.m. EST, the Dow Jones Industrial Average futures were down 147 points, or 1.82%, while the S&P 500 futures were down 18.10 points and the Nasdaq 100 futures were down 22 points.

We expect the markets to decline significantly into July and will present select opportunities to astute investors seeking value. We expect the decline will be over by early August.