Again, “It’s the economy, stupid”! Said Clinton

Clueless in Washington
1) Government can only deliver healthcare at half the private sector cost by subsidizing it with taxes at twice the cost … stupid!
2) Stimulating the government sector stimulates unions, waste, and inflation... stupid!

Market forces July 7
The democrat socialists see now that their stimulation package was a complete waste and accomplished nothing. They do not understand that they need to stimulate private enterprise because the entrepreneurs create the new productive jobs.

The democrat socialists do not understand that lower taxes gives everyone more money to spend just like lower reserves gives the banks more money to loan.

Palin now says the democrat socialists are full of bull crap.

2) Raising reserve requirements contracts the supply of money available to loan… stupid.
3) Raising taxes contracts the supply of cash to invest in new jobs… stupid.
4) Smearing opponents and critics destroys your grass roots support... stupid.


Market Outlook
We expect U.S. stocks to slide, sending the stock market into a fourth straight week of this correction. This could be the first week we see real pressure rising on the dollar.

It takes very little volume to move the market these days and the volatility index, VIX, is low indicating overconfidence in the belief that the previous market low in March will hold. That is how it was in September 2007 just before the market bottom fell out. Oil and other commodities fall when deflation is feared. The reason for the deflation is that the stimulus is mostly going to deleveraging the banks (reserves in the bank vaults) and to the wasteful black hole called government spending.
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Last night most Asian markets were down Hong Kong down -0.7%, China down -1.1%, Japan down -0.7%, and India up 0.9%.

Most European markets were up this morning in a range of 0.3% to 0.8% half way through their session.

US futures are up slightly this morning.

We will be cherry picking into the market during what we expect to be about two months of market decline.