Without an extension of unemployment benefits the unemployed are no longer listed as unemployed. A senate vote on extension of unemployment insurance was required over a week ago. People laid off a year ago continue to be told they must wait for the beneficent democrat-socialists to act. The socialists find it acceptable to attach socialist political amendments to the bill to get moderate Republican fingerprints on the bill. Reid wants an Amendment that makes this new bill "TARP on steroids" giving socialists the power to politically target more FED funds for contributors to their political campaigns. Government corruption under the socialists continues to grow. In communist countries you had to wave your little flag at the communists rallies or you lost your job and health benefits. If you spoke out against socialist corruption the socialists in communist countries sent you to die in a labor camp unless you happened to be a well known nuclear physicist national hero in which case you lost your income and were a burden on family and friends for food and shelter until you could escape to America. If we have American socialist tyranny there will be no place for Americans to go to have our current liberty. The world will descend into the perpetual economic depression they had without liberty or free enterprise. China is growing rapidly today only because they are experimenting with the individualism of free enterprise that is a complete contradiction of communism. If the Chinese return to political communism they will descend again into economic depression just as Russia has done.
US economy snaps the worst recession since Jimmy Carter
As we said we expected last week, the U.S. economy expanded in the third quarter after shrinking for four consecutive quarters, marking an apparent end to the worst recession since Jimmy Carter. Gross domestic product (GDP) has not been positive since the second quarter of 2008. It was the best quarter of the last two years. We had noted that shopping at malls was more frantic than during the last Xmas season. But still companies continue to lay off workers and credit remains tight wringing the excesses of the last liquidity bubble out of the American economy.
Gross domestic product expanded at a 3.5% seasonally adjusted annual rate in the quarter ended in September. Christina Romer, president of the White House Council of Economic Advisers said, "Without stimulus programs such as cash for clunkers and a first-time homebuyer's credit, real GDP would have risen little, if at all, this past quarter."
The economy's performance sent stocks soaring close to the 10,000 level. The Dow Jones Industrial Average closed up 199.89 points, or 2.05%, to 9962.58, its biggest one-day point gain since July 15, 2009. We advised yesterday, " Profit taking continues to be advisable on advances and purchases should be made on declines as we bottom. This bottom may be a deeper if we are entering a slower growth phase."
We have no indication that the bull market was over and the market decline already is in line with the last two corrections.
New reports coming out today Oct. 30, AM:
Consumer income & spending
Chicago Purchase Manager Index
Consumer Sentiment
Market forces October 30
Profit taking continues to be advisable on advances and purchases should be made on declines each time we bottom. This last bottom was a little deeper and we appear to be entering a slower growth phase. The market appreciation rate this year could not be sustained. The new rate possibly will allow the bull market to last a little longer.
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Asian markets were up sharply last night; China up 1.2%, Hong Kong up 2.3%, India down -1%, Japan up 1.5%, and Seoul down -0.3%.
European markets are flat in a range from 0.2% to -0.3% this morning about half way through their day.
US pre-market futures are down -0.3% today at 7:30 AM EST with perhaps another buying opportunity.
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