A depression is a recession that is managed by socialists

Martin D. Weiss, Ph.D. exposes five economic lies of Wall Street and the Obama administration in:
The Great INVESTOR SWINDLE of 2009
http://finance.moneyandmarkets.com/five-lies-2/the-great-investor-swindle/order/?sc=G100&ec=A96082

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Basically our democrat-socialists today are repeating the same mistakes socialists made when they caused the FDR depression. Socialism can take any normal recession and turn it into a 10 to 20 year fiasco. An example is Japan that wanted to guarantee its people one job for life where their job provided their fitness center, psychoanalist, medical center etc. Instead the Japanese got a life-long recession which free enterprise systems call a depression.

Martin D. Weiss, Ph.D presents a graph that shows the next leg of the depression is about to begin and there will be several more down legs before his predicted 2013 bottom.

Janet Yellen seems to think we are in a great depression as well. Yesterday Federal Reserve Bank of San Francisco President Janet Yellen said the prospect that policy makers will leave the benchmark U.S. interest rate near zero for the next several years is “not outside the realm of possibility.” That of course is exactly what will happen if Martin Weiss is correct.

Yesterday Mad Money had a strange call and Jim Cramer recommended the caller be 50% in US treasuries at these uncertain times. Weiss recommends 100% US treasuries and to sell your house as soon as possible. The Obama administration is an American Obamanation of socialist naivety. They believe that robbing the productive American workers to support welfare check entitlements for the ignorant the indolent and illegal immigrants is justice and progress. Most Americans will grow to see it as a form of slavery of entrepreneurs. Atlas will shrug it off no doubt by 2014 or 2010 if we throw the socialist bums out.

Market forces July 1

The portfolios for the second quarter are now tucked away. The decline may be as little as 12% or if Martin D. Weiss is correct it will set a new low.


Market Outlook
Today Bloomberg said that declines of more than 23 % in regional banks and 20% for homebuilders plus the failure of transportation companies to erase their annual losses may be signs the rally in the Standard & Poor’s 500 Index is about to fizzle. We recommended profit taking and correctly predicted the top three weeks ago.

Market volume recovered 20% in the market decline yesterday. It indicated more sellers willing to risk going up against the institutional owners who were putting their remaining cash into their existing portfolio to raise their quarterly performance just as the quarter closed. The funds have now exhausted their cash reserves buying to drive up their portfolio values. The sellers should begin to dominate the market now and through July and August if not longer.

The rapid decline in FED rates combined with the higher yields on bonds needed to entice investors during the tight credit period early this year was an excellent buying opportunity that is always the case when interest rates are lowered. That period was over months ago because the fed dropped their rate effectively to zero transiently raising the value of bonds. Short term bonds are still ok because you can liquidate them before rates change too much. Long term bonds are the ones to avoid because we believe Federal Reserve Bank of San Francisco President Janet Yellen and Martin Weiss are probably correct in thinking this Obama depression could last until 2013

Last night most Asian markets were mixed: Hong Kong down -0.8%, Japan down -0.2%, and India is up 1%.

Most European markets were up this morning in a range of 1.4% to 1.7% half way through their session.

US futures are flat-lined again at the start today.

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