Americans are united and against oink-oink bonuses for profits that were the direct result of the infusing of taxpayers cash.

American taxpayers say give back our money you self deluded bank executives. You lost your money and we want ours back now! We gave you that money by loaning you your reserves and then paying you more interest on it than you paid back. Every dime you made was taxpayer largess you ingrates! You did not earn any bonus this past year you self serving banker pigs.

Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co.’s investment bank just now reduced their compensation in the fourth quarter, responding to political pressure that will probably persist as details of bonuses for their top executives emerge.

World Outlook
The likelihood of a surge in new mortgage losses and credit difficulties is high. Few reforms have been enacted that would make a second wave of difficulties any different from the first wave. China continues to put the brakes on their economy having a depressing effect on world commodities. That also means they have less cash to buy US treasuries and rates can be expected to begin to rise in the free world as well. Higher rates cause without recovery is stagflation and the Jimmy Carter type malaise and inflation of the late 1970's.

Market Week Reports:

Monday, Jan. 25
Existing Home Sales 10am

Tuesday, Jan. 26
Home Price Index.
Consumer Confidence

Wednesday, Jan. 27
New Home Sales
FOMC

Thursday, Jan. 28
Unemployment Claims
Durable Goods Orders

Friday, Jan. 29:
GDP
Chicago PM Index
Consumer Sentiment

Market forces January 25, 2010
Bank of Japan policy makers are prepared to expand an emergency-loan program for banks and increasing purchases of government debt should the recovery falter, people with knowledge of the matter said. FDR's leftist policies also failed and spun America into the Great Depression after what first looked like a stock market recovery. The stock market dropped then to a new low and FDR then dropped his leftist advisors. At the time of the Great Depression communism was on the rise abroad and in American universities so we can excuse FDR for his early leftist failures. But today communism has been proven a complete failure and a pox on human civilization so Obama has no excuse for his failing socialist economic policies. China is doing well at the moment because for the first time they are allowing their people economic freedoms that Americans have enjoyed for 275 years. If China ends those freedoms China will likely have a very bloody revolution that will end their totalitarian regime.


If Trim Tabs was correct in their evidence that the Obama administration may have floated the stock market to stabilize world markets, then an angry Obama has the power to cut off that money if Wall Street refuses to continue to accede to his demands. But the billions of Wall Street dollars that floated the lunatic left into office in 2008 turned to a trickle in Massachusetts this week and swept Senator Brown into office. Obama could drive the markets to their old lows again. After all the Washington leftist lunatics tried and almost succeeded in causing a Great Depression again in 2008, Obama may now succeed in 2010.

First Senator Rangle and Dodd destabilized the mortgage industry in 2005 by calling banks racist if they refused to give home mortgages to people who cannot afford them.

Second the Obama campaign called the recession a Great Depression in 2008 when it most certainly was only a mild recession to start a panic and make the Bush administration look inept.

Then Senator Dodd in mid 2008 leaked the names of a few banks that had gone insolvent due to people with 125% mortgages walking away with the 25% cash they got and caused the first runs on American banks.

We remain 90% out of the market. January’s rally in Treasuries appears fleeting, as options traders bet on more volatility in bonds and waning volatility in stocks. That is a harbinger of higher FED interest rates and higher inflation. Stagflation caused stocks to move sideways under Jimmy Carter.

Asian markets were down again over night; Shanghai down -1.1%, Hong Kong down -0.6%, India down -0.5%, and Japan down -0.7%.

European markets are down again with the average in a range from -0.2% to-0.5% this morning about half way through their day.

US pre-market futures are up at about 0.7% today at 7:30 AM EST. American morning futures are not too reliable.