Banks borrowing from taxpayers at 0% interest to buy USA taxpayer bonds that pay more than 4% increases the deficit.

The projected TARP costs were reduced by $200 billion as banks borrow from taxpayers at 0% interest to buy USA taxpayer bonds that pay more than 4%. Comrad Obama says that it reduces the deficit but obviously it does not. It only shifts the deficit from TARP to the Treasury. But the Obama administration apparently either hasn't got a clue or thinks Americans are not smart enough to understand what is going on.

Zales was zapped but FedEx and Tiffany have just report better outlooks.


World Outlook
Banks face fresh Dubai debt fears and that is putting pressure on Emerging Countries such as China and India which could be the next bubbles to burst just as Japan did in 1990. Britain has greater percentage exposure to Dubai and could fall out of the world's top 10 economies. Moody's said the U.S. and U.K. socialists must prove they can reduce their ballooning deficits to avoid threats their triple-A credit ratings.

Market Outlook:
The U.S. and the world are near the top of the biggest stock market bubble since the 1930s.

The NYSE is now 2.4% below the required sustainable cyclical bull market's head level and thus is still a declining shoulder. It is not looking good for a continuation of the current market bubble as less than three weeks remain in the Christmas season rally. The $800Billion union/welfare stimulation package has been spent but when one gives cash to slackers, featherbeders, shirkers, socialist comrades one does not create jobs. Obama, the community activist, would like us to believe he did not know that one only buys votes his way. Americans are increasingly unhappy with Obama's socialism.

Bernanke and NY Fed president Dudley affirmed low rates would continue into next year easing fears of a rate hike.
Copenhagen welcomed Obama administration climate fraud as the EPA declared that animal breath is a toxic planet gas.


This week:
Tuesday, Dec. 8:
Business roundtable issues
Chain Store Sales

Thursday, Dec. 10:
Weekly unemployed Claims
US Trade Deficit

Friday, Dec. 11
Nov Retail Sales
UM consumer sentiment


Market forces December 8
We estimate the NYSE must still rise 2.4% from Friday's close to be interpreted as a continuing rally not a declining head and shoulder sell signal. That reflects both the price change and volume of shares being traded. The market already looks like it is topping out. In any event after a possible year end rally a normal -3% to -5% downward correction would be due anyway… so it is still wise to take profits were possible. If the head and shoulders sell signal occurs the correction could be closer to -10% to -15%.

Asian markets were down over night; China down -1%, Hong Kong down -1.2%, India up 1.4%, Japan down -0.3%, Seoul down -0.3% and Taiwan down -0.1%.

European markets are down with the average in a range from -0.6% to -1.5% this morning about half way through their day.

US pre-market futures are falling fast at the moment and are down about -0.6% today at 7:30 AM EST.

It is important to be able to take stock profits before January if the broader market of the NYSE does not set a new high at least 2.4% above yesterday's closing price and on above average volume. Continuation with the current market bubble looks like it now will be a bumpy lateral ride.