Obama threatens to inform his thugs of bondholders who do not cave in. Pump and dump.

Market forces May 6,
Socialists:
Remember that Lenin, Stalin, then Hitler and Mussolini were highly popular people who started as unknowns with very little experience but never let a crisis go wasted. Their followers loved them as they exploited and eventually murdered wealthy minorities who were considered dangerous people. Smart and capable people are always a danger to totalitarianism. The greatest and most popular socialist dictators were men who turned out in the end to be psychopaths. They all won their dictatorial powers in free democratic elections.

Amazingly MSNBC/GE/Pravda last night started going after Obama for threatening those who resist his dictatorial nationalization with busloads of Acorn, Communists, and other community activists ready to protest at their homes and send death threats. GE/Immelt owing the MSNBC media is like Bellasconi owning the media in Italy with one difference. Bellasconi is not a socialist so he is criticized and Immelt is not. No doubt MSNBC wants to fire those capitalist conspirators but they suddenly noticed their ratings went up. Americans are opposed to nationalization but they still do not understand Obama's policies are left of socialism. Obama is like FDR in many ways. But like FDR he is leading America into a socialist depression. Africa and Latin America are socialist continents that are in one continuous socialist depression. Socialism is an "eat the elephant and then starve" syndrome. Socialism's redistribution of wealth is great when we can appropriate the wealth of the rich Jews, or the rich aristocrats, or the rich Wall Street gang, or those rich GM bondholders. It is simple: first declare their livelihood a social crime and demonize the rich and successful by saying they stole from the poor. Then legalize the stealing of the wealth of the rich and successful with new laws to tax them or by creating a crisis to destroy the market value of their wealth and then nationalizing their wealth at depression prices further depressed with threats of violence if they do not accept government expropriation. Giving out the names of the bond holders who resist this plan is like Hitler identifying all German Jews (criminalising them as thieves) so Hitler's Acorn (Brown Shirts) can then intimidate them at their homes.

That is what socialism is. It is the criminalization of the most productive people in society followed by the theft of the assets of the most productive people in society. It is a feast and a nationalization orgy until all the assets are consumed. When 2% hold 50% of the national wealth they can for a short period double the wealth of the lower 98% using this technique. It is like the African elephant kill where everyone feasts until the elephants go extinct. Then everyone starves and the incompetent ignorant socialists strip the land like locust looking for food. Global warming is not the reason for starvation. Global nationalism is the cause of the deserts and floods because socialists isolate and destroy all the most intelligent and productive people in socialist countries declaring them anti-socialist. Under socialism it is not integrity, what you know, or your abilities that count, it is only who you know that counts.

Market Manipulation:
This past Monday was mutual fund Monday when employees pour the money into their 401 plans. Usually it is a large cash flow at the beginning of the month and this month it was positive for a change. But now it is over and Jim Cramer thinks that the market will now drop unless the hedge funds continue cannibalism of food and other "wrong" stocks. What a clever thought. Could that be how funds create illusionary market rallies by buying the "right" stocks in the indices while selling the "wrong" stocks that do not affect the indices? That would explain why so many Americans lose money even in rallies like the current one. Then as the rally begins to fail the fund managers reverse the cannibalism and switch into the "wrong" stocks that do not affect the indices exaggerating the losses of the investing public.

If that is true then Jim Cramer and his fund friends first lure the public into the rally of "right" then they dump the "right" stocks and buy the "wrong" stocks at depressed prices. Now it all makes sense! That explains why Jim Cramer and his buddies recommend and pump the stocks after they have bought in and prices are in an upward trend. That is because they are already invested (i.e. their charitable trusts… baloney) and they want Joe Americans to take the high flyers off their hands. So Jim Cramer rightly pronounced that yesterday the "wrong" stocks went up and that could spell the end of this rally because they do not help raise the indices. It indicates that the funds have finished pumping the "right" index stocks and have begun dumping them and buying the "wrong" non-index stocks.

Disney profit is reported as down 43%, but Jim Cramer spun that as good news coming out today.

Economic signs:
The mutual funds have exhausted themselves before reaching the January index highs. Failure to meet the high is an indication that the market still could set a new low in the next three months.
Companies in the U.S. cut an estimated 491,000 workers from payrolls in April, indicating the labor market is still weakening but at a 30% lower according to a private report showed today. That would again indicate an inflection point or that the recession is about half over and unemployment should level off at a lower level by the end of next year.

Market Outlook

Last night's results: China is up 1%, Hong Kong is up 2.5%, India is down 1.5%, and Japan's market was closed.

European markets are in the range of 0% to +0.9% mid way through their day.

US futures indicate the markets will start flat today.

We recommend cherry picking back into the market during retrenchments. This however still is not a long-term investor's market. The markets could easily hit a new low in the next three months.

Ben Bernacke is a broken clock that always tells the same time. He is always saying the economy will recover six months from now. This past winter he said the economy would turn around mid year and now he says by the end of the year. Ben Bernacke is probably the most incompetent FED chairman in the history of the FED. Geithner is no better. Under socialism it is not integrity, what you know, or your abilities that count, it is only who you know that counts.