Financial racketeering is one reason for American distrust.

Jim Cramer still openly advocates racketeering, lying, deceiving the little guys, and robbing them blind. Is it any wonder that the disillusioned Americans are turning to socialists? That is why Germans turned to National Socialism and Russians turned to Lenin and Stalin. Jim Cramer thinks a CEO is a dunce unless he lies and gives a low ball earnings estimate a month or so before he announces earnings and then lies again and says that the next quarter will be much better. Jim Cramer thinks investors are stupid and need to be surprised with fabricated good news when earnings are announced.

GE/MSNBC/PRAVDA apparently believes deception is smart too. Jack Welch recently dunned GE CEO Immelt for being so stupid as to deceive Wall Street and announce great progress just a month before having to announce terrible earnings. You see Wall Street expected GE would lie and aim low but Immelt was too stupid to understand how Jack lied all the time to create low expectations in order to get upside surprises. The current GE CEO dunce got it all backwards according to Jack.

Jim Cramer duns the WSJ for trying to be honest and continue with traditional good journalism. That is one reason the WSJ survives and other newspapers and GE/MSNBC/PRAVDA are headed for the dustbin. Americans are disillusioned with financial dishonesty and corruption just as the Germans who turned to the socialists in the 1930s. That is what George Soros and GE/MSNBC/PRAVDA apparently have wanted all along. The people who are destroying American trust in free enterprise and the American financial system want Americans disillusioned and want Americans to turn to socialist lies instead.

But the irony is that even with Jim Cramer lying and getting small investors into the market at the top so they loose their shirts as he sells out his oil stocks, or as GE/MSNBC/PRAVDA rips to shreds Palin and others who see through the socialists, Americans are beginning to see that America is still the leader of the blind socialist serfs of the world and Americans are beginning to see that Socialism is not a cure. Socialism is a disease of the soul of liberty. Creeping socialist tyranny and control of our lives explains the Senate Banking Commission corruption that caused the mortgage crisis.

Americans now are beginning to see that dumb, dumb, and dumber refers to the socialists in the House, Senate, and the White House. The Obama administration finally admits the Bush administration was right that the legal basis for indefinite detention of aliens it considers dangerous is separate from war-crimes prosecutions. Officials say that the laws of war allow indefinite detention to prevent hostile aliens from committing warlike acts in future, while prosecution by a military commission aims to punish them for war crimes committed in the past. Obama may keep Gitmo open but with a different name in a different place.

Market forces July 8
The democrat socialists see now that their stimulation package was a waste and accomplished nothing but they want to throw some more money at it anyway. Other people's money of course!

The question is will investors be even more disillusioned now and will the market and commodity futures spiral down to a new low as it would in a depression?

Jim Cramer claims now that energy futures have too low a margin requirement and they are easy to manipulate. He should know! He said it only took about $10 million to drive oil futures higher which then drove oil prices higher and made many investors think the world economy was reviving and economic expansion was around the corner. Cramer was perhaps either the biggest sucker of that scam or else he used it to unload his charitable trust oil stocks near the top. He sold right after he told doubting investors like me, sitting on the side lines, that good investors admit when they are wrong and we should capitulate and get into the market before it is too late (right at the high). Well it turns out that yesterday Cramer admitted he capitulated and took his profits just after telling his audience to be "in the market"!

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. Only greater uncertainty abroad will help the dollar.

Emerging-markets from India to Dubai tumbled, the ruble dropped to seven-week low and bond yields climbed as a slide in Japanese machinery orders caused concern that the global recession abroad was getting worse.

Jim Cramer now says that oil prices were manipulated via their futures and the economy is not recovering. He still has not admitted that his housing market bottom did not really happen last month as he claimed.

It takes very little volume to move the market these days and that is an indication of instability. The volatility index, VIX, is low and that indicates overconfidence. 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 money is going to de-leveraging the banks (reserves in the bank vaults) and into the wasteful black hole called government spending. The socialists want a crisis because they think people will then accept government control of their lives and a doubling of America's tax rate like the socialists have done in Europe. But I think Americans are much smarter than that and that the socialists will be thrown out first.

Last night most Asian markets were down Hong Kong down -0.8%, China down -0.3%, Japan down -2.4%, and India down 2.8%.

Most European markets were down this morning in a range of 0% to -0.5% half way through their session.

US futures indicate fear and caution this morning.

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