He could be the Democrat-socialist delight as they ram through reparations and other wealth redistribution programs to consolidate gains in their voting block of the proletariat and illegal aliens.
World Outlook
Argentine now has $20 billion of defaulted bonds.
Derivative traders are signaling that the Euro’s slump to a nine-month low will continue even if European Union leaders bail out Greece.
Mexico will Buy Up to $600 Million a Month as Mexico’s central bank buys as much as $600 million a month in the currency market in a push to boost foreign reserves after last year’s peso tumble led policy makers to turn to the International Monetary Fund for help.
It is becoming evident that EU nations are hiding much of their national debt with transactions that keep the debt off the books. Goldman helped Greece and others hide $billions of debt thereby hiding their high risk and putting them well over their heads and unable to pay fair market interest on their existing debt now that it has been disclosed. Interest payments on new debt have become unaffordable and any country that offers Greece aid will lose everything they loan. Greece arranged swap agreements with about 15 securities firms that have helped hide the country’s true deficit.
Greece is actually smaller than California or New York where government employees are sucking the blood out of their taxpayers.
Week of Market Reports:
Tuesday, Feb. 23:
Housing Prices
Consumer Confidence
Wednesday, Feb. 24:
New Home Sales
Ben Bernanke speech
Thursday, Feb. 25:
Unemployment Claims
Durable Goods Orders
Leading Economic Indices
Ben Bernanke speech
Friday, Feb. 26:
GDP Revision
Chicago PM Index
Consumer Sentiment
Existing Home Sales 10am
Market Outlook February 23
Home Depot profits exceeded analysts’ estimates and dividends were raised.
It is expected that Bernacke will continue low rates for the next few months until it is clear that there is no double dip.
The short and interim market direction remains bullish. However, when the market rises close to the next high (in 2 to 4 months) it will likely be a critical time to take profits because FED tightening will likely be occurring soon after. After the next high point the subsequent decline will likely break the old October 30 lows and challenge even the July 2009 low. Our corrected NYSE cash flow index gave its Head & Shoulder neck breakdown sell signal on Jan 29 when the NYSE (corrected for trading volume) broke through the neckline of a head and shoulders formation and it plunged about 3% below. But that signal has a long lead time which allows us to know what is likely two or three months in advance. The reason we cannot do a Market Cash Flow Analysis (MCFA) of the other exchanges is because they use the NYSE volume; they no longer use their own real stock volume.
Asian markets were mixed over night; Shanghai down -0.7%, Hong Kong up 1.2%, India up 0.3%, and Japan down -0.5%.
European markets are down slightly in the range from 0% to -0.6% this morning about half way through their day.
Today US pre-market futures are down about -0.3% at 8:00 AM EST. It is seldom a good indicator of what will happen but we are due for a small correction soon. Still inflation will stimulate inventory build-up, which will mean profits for suppliers. Suppliers should do well now.
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