GE should and could soon be broken up.

GE/MSNBC/Pravda is now a political sycophant corporation dependent on the continuous adulation of the Democrat-Socialists apparently for favors and future government contracts. Part of the problem is that GE uses its financial division to boost sales and that division is now open to regulation as a bank. In truth it should be regulated because the system GE uses has caused not just GE (in 2008) but CISCO (in 2000) and many others to do things that bank regulators might consider fraudulent. In fact a president of Singer once was ousted for booking potential sales as real sales when in fact many buyers paid nothing and defaulted because the sales were a virtually product give-away. What happens is:
1) GE begins legitimately by facilitating a sale with a legitimate loan.
2) Next it essentially gives the products away with a loan or lease with generous rates and a balloon type payback
3) Finally before the financial division goes bust it can require little or no money down perhaps even give a cash rebate and at that point it is not distinguishable from the subprime scandal where unqualified buyers are systematically approved. With a huge conglomerate like GE, GE is now too big to fail.

But GE goes one step further. They became a GE/MSNBC/PRAVDA type political sycophant heaping political praise on the federal government. Broadcast praise is valuable and it can be said that GE can now buy and bribe with priceless political MSNBC political favors and free political advertising possibly violating election contribution and disclosure laws.

GE is now rife with questionable management, rotting political and economic problems and with a federal administration that suggests busting up financials like them. Have them divest MSNBC at the same time.


Market forces June 22

We went out on the limb and gave a countdown to the end of the rally and our timing was perfect this time but it took until yesterday for Wall Street to concede we were in a bear market rally not a new bull market. Even Kudlow on MSNBC said last night that Socialism would destroy the economy and that there was hope that Democrats in congress would join Republicans and kill all of President Obama's Socialist proposals. Socialism crushes liberty and free enterprise and there is only one country left in the world, America, where liberty and free enterprise still exist together.

President Obama says he believes in the "free market" but so what? The communist Chinese and most Ayatollahs and even Osama does too. Free markets even existed among cave dwellers long before liberty and free enterprise unshackled the human mind.

Socialism is a powerful negative market force that eventually causes economies to spiral down into a chronic permanent depression and rule by political tyrants. Socialism is the primary market force at work in Obama's administration. As long as President Obama wants to nationalize anything his administration will keep the world's economy in a death spiral because the American engine of "free enterprise" and personal liberty is being bleed to death under the Obama administration.


Market Outlook

The light market volume continues and it means that the stock market is destabilized and can be manipulated easily. The market is unstable because even a low volume of selling now drives the market much lower and very rapidly. Lenin and other great socialists created market crises because they are excellent opportunities for socialist dictators to expropriate private wealth. But Wall Street and Congress are now beginning to recognize that the far-left Obama socialists are destroying the American economy that has become the engine of worldwide innovation and productivity. Whatever the hand of socialism touches dies or becomes chronically diseased.


American socialists are not just interested in redistributing American wealth to other Americans. No, they are world socialists and plan to distribute America’s wealth around the world. The "world socialists" in other times preferred to be called "Communists."

Soon we predict that the "Al Gore" farce will become recognized as another socialist instrument of world economic control. Last week the University of Edinburgh reported that since the ignoramus "Al Gore" or "humanoid caused global warming" theory came into existence that many scientific research reports are no longer required to use science. A single Polar bear's death was projected as the death of the entire species. Al Gore and Michael Moore are now the greatest "cinema" scientists the socialists have produced to date.

Last night most Asian markets were down with China down -0.2%, Japan down -2.8%, and Hong Kong down -2.9%, South Korea down -2.9%, and India unchanged. Red China's and Socialist India's market reporting can no longer be taken as even resembling truth. They appear to still be over-inflated equities bubbles. In the USA we would have expected more than 50% bankruptcies of the new companies by now. The socialists, communists, and religious leaders cannot be relied upon in economic reporting. They are dangerouse investments to be in at this time.

Most European markets are flat today in a range of up 0% to 0.5% half way through their session.

US futures are flat at about +0.1% today. We are on the sidelines now. It would be better to buy real estate now than to buy stocks at current prices based on their imaginary potential future earnings ten years from now. Based on real earnings the S&P PE ratio is at an historic high and even a 50% decline is still possible. We expect to see a stock market sell-off of about 25% as investors realize this Obama crisis is caused by Obama's socialism. But when American socialist threats end you would not want to be caught selling America short.