The recent decline of the Dow Jones Industrial Average indicates that the continuing weak economic numbers are no longer enough.

New York University Professor Nouriel Roubini, who accurately predicted the financial crisis, said stock and commodity markets drop as the slow pace of the economic recovery disappoints investors. The mortgage contagion has now even hit state-run investment pools that handle $200 billion in funds for schools and cities.

IMF Managing Director Dominique Strauss-Kahn said the world's worst economic crisis in decades could be over within another year or two. He linked its end to the drop in jobless rates, which are still rising in the US and Europe. Strauss-Kahn said he believed unemployment would begin falling in 10-12 months, at which time 'the crisis will be behind us.'

Governments have invested trillions in their economies over the past year in an effort to head off the worst global recession since World War II. How long those measures should remain in place has been a key question for policymakers. Finance ministers said the IMF would begin to create 'exit strategies' at its next meeting in April 2010.

Former Federal Reserve Chairman Alan Greenspan said on ABC, "The federal government should not consider a new stimulus package, even with U.S. unemployment likely “to penetrate the 10 percent barrier and stay there for quite a while. The focus has got to be on trying to get the economy going, but you also have to be careful that in trying to do too much you can actually be counterproductive.”

U.K. Treasury minister Paul Myners is pressing more banks to adopt the curbs on obscene bonus payments at institutions including Goldman Sachs Group Inc. and Morgan Stanley. The curbs are recommended by the Group of 20 nations.

The dollar continues to fall against the euro even after Group of Seven finance chiefs refrained from calling for measures to stop the U.S. currency’s decline. The greenback also declined against 14 of its 16 major counterparts on speculation Federal Reserve officials will keep interest rates at a record low.

Glen Beck said on MSNBC that the bail-out of GM was an example of administration corruption, a flagrant payoff to the unions for their political support knowing full well that GM couldn't survive on its own even in the recent past good times.

BOA is looking for a new executive to replace political dissident Ken Lewis who tried to resist government bullying last fall and came under immediate attack by Obama socialists across the country. The Democrat-Socialists used their elected positions to improperly use taxpayer and state employee funds invested in BOA to politically attack Lewis at shareholder meetings. Dissident Lewis and his team were forced to quietly toe the Treasury/FED's socialist nationalization line until Congress investigated. Then dissident Lewis told the world about how all the financial executives were forced to sign up and shut up or the socialists would remove them (illegally). The socialist won by harassing Ken Lewis who only continued to work because he had loved his job until the socialist took over the government.

While Obama, last spring, eventually gave up on his sick plan intended to force soldiers to pay their own insurance premiums covering war injuries, his administration is now ignoring the general's request to quell the Taliban/Al Queda terrorists. The Obama administration has begun a defeatist campaign saying that the USA cannot stop terrorism and should negotiate with the Taliban.


Market forces October 5

Nothing has changed since 1929! Obama is creating the second Great Depression before our eyes. They persecute dissident Ken Lewis as Chicago thieves and ACORN run the country amuck. American industry is starved of liquidity while TARP funds the stock market speculators.

When the administration gets caught allowing speculation of Bank/stockbrokers with TARP funds there likely will be another freeze up of the entire economy as the TARP plug is pulled. US stocks will plummet and the recent speculative TARP profits of the financial sector will turn into staggering losses again.

U.S. stocks fell again Friday. The normal expected first week of the month flow of funds into the market did not occur last week.

Co-mingling of funds at brokerage houses that are now classified as banks allows the same kind of bubble seen in 1929 when banks also were also allowed to speculated in stocks. The Obama administration will likely go down as the most corrupt and inept government in the history of the U.S.A. if it does not get its act together soon.

Asian markets were down last night; Hong Kong up 0.3%, India down -1.6%, Japan down -0.6%, and S Korea down -2.3%. Several Asian markets were closed or did not report on time.

European markets are down in the range from -0.8% to -1.5% this morning about half way through their day. They were down close to 2% yesterday.

US pre-market futures are flat up slightly again in a range of about 0% to +0.4% at 8:00 AM EST after Friday's decline.