The Dollar and Yen are both taking the hit now as the Asian currencies rise. Yet they cannot get enough of the declining dollar.

Market Outlook

The currency markets are beginning to behave erratically as well as irrationally. Asia continues to pile up sales and refuses to try to balance world trade. Yet, it is a viscous cycle for China and India to maintain. If they do not buy the dollar America then has no money to buy their products and then they slip into a severe recession and their own currencies will crumble as the have done in the past. So selling debt is the crack cocaine of the Democrat-socialists and buying American debt is the crack cocaine of the Asian manufacturers. Now one might think that at some point the Asians would use their cash to buy crumbling American commercial real estate. But Japan tried that in the early 90's and they still have not recovered from those investment losses.

The failure of the banking regulators to follow up on the 2006 advisory, that banks avoid letting commercial real-estate holdings exceed 300 percent their capital, has emerged as the reason at least 20 out of 23 banks later collapsed, reported the agency’s watchdog. Commercial real estate failures continue to grow even as the second wave of home mortgage failures grows. The second wave is due to the loss of jobs of people with mortgages and we still have no confirmation that the peak in layoffs is behind us.

This decay of the west is nothing new. It preceded and resulted in WWI and WWII each time when America beacon of liberty was snuffed out by socialists and the nation receded into isolationism. Socialism and communism got their names in the late 1800's but the use of democracy by the lazy, the corrupt, and the criminal to steal from honest hard working people has been around since Athenian democracy. While democracy is an important component of American success, it is American liberty, free enterprise and rational self interest in the thousands of lights of support of kindness towards one another that has made America not just the beacon of liberty but the world powerhouse of innovation. As American socialists become more powerful and steal more from our innovators and workers via taxes, the light of liberty and the energy of innovation are extinguished.

Isolationism is where the democrat socialists are taking America now as we venture into the hallucinogenic state of imagined human caused climate change, and rock music therapy for world hunger. Obama leftist lunatics, corrupt community activists, and socialists in Congress are now spending money fast enough to destroy America. Hopefully America will wake up in 1010 and throw the Democrat and Republican socialists out en masse.

The week ahead:
We expect positive reports all week but the powers that be are beginning to spin the news negatively indicating that hedge funds are shorting again and may be the ones investing heavily in December Puts.

Monday, Oct. 19 PM:
Housing Market Index

Tuesday, Oct. 20 AM:
Housing Starts

Wednesday, Oct. 21 PM
FED's Beige Book sentiment

Thursday, Oct. 22 AM
Unemployment Claims
Leading Economic Indicators

Friday, Oct. 23 AM
Existing home sales
Relative to the declines seen last year this will be a week of positive reporting. But relative to last month's reports this week will likely show several economic sectors remain in decline.


Market forces October 19

The question is, "When will this market bubble go *pop*."
Basically one needs to always be out before or early in the next decline because the next decline could always be when the bubble pops. Traders get out every day before the close. Investors have about a month in each rally of late.

How can anyone be truly optimistic that the socialists won't put us into another 1930's type depression until the leftists are democratically voted out of office in 2010? Obama's money printing presses are roaring and he his giving out checks now to his supporters just as every banana republic dictator does. In Detroit they were recently told where to go to pick up their Obama checks. Obama socialists say welfare is an economic stimulant, not tax reductions! How confused these leftist lunatics are! In truth they know they are giving the checks to buy votes and stay in power.

Asian markets were up last night; China up 2.1%, Hong Kong up 1.2%, India closed, Japan down -0.2%, and Seoul up 0.5%.

European markets are up in a range from 1.3% to 1.5% this morning about half way through their day.

US pre-market futures are higher today by about 0.5% at 9:00 AM.