Big government is the biggest problem. Socialism is the religion of atheism. Nothing is too big to fail.

Big government is the biggest problem. Socialism is the religion of atheism. Nothing is too big to fail.

If governments continue to bail out their big banks then the governments fail just as the Communist regime of the Soviet Union failed in 1989. China was one ongoing failure for about 500 years until it adopted freedoms learned from the take-over of Hong Kong after their 100 year lease of that previously worthless island to Great Britain. Great Britain had made the island of Hong Kong one of the most prosperous cities in the world.

Communism is a particularly mean extreme form of socialism. Fascism is the other mean extreme form of socialism. All forms of socialism wander between these two extreme forms. America has been the world experiment in liberty that has so far lasted more than 300 years, the longest ever for any place on earth. Obama said he wants Americans to change the American Constitution to make America like socialist Europe, Asia, South America, and Africa. He wants a Supreme Court that is not based on law but is sympathetic to people who want big government to take care of all their needs. Socialism is the religion of atheism not a successful economic form of government. Socialism is a form of Christianity without any God. Early Christian experiments had communes that collected from each according to his ability to redistribute to each according to his needs. The Mayflower colony was exactly that religious form of socialism until half the colony starved to death. Then the Pilgrims changed: to each according to his works from each according to his charity and love of others. Karl Marx stole the idea of Communism from European Christian collectivist socialism. He said, "From each according to his ability, to each according to his needs." That is what all Christian communes said, but Karl Marx stripped out the Christian concept of a loving God that was the basis for Christian sharing of God's love. Police force, the Gulag, the Siberian death camps, and the horror of Mao's "Cultural Revolution" became the process for conversion (re-education) of people to Communism.

Under Obama the banks can now pretty much dial any ostentatious profit they choose. How much money they invest is only limited to how much low interest taxpayer money they choose to borrow. As far as risk goes, they have none at this time. They invest in treasuries which then raise the money the FED uses to loan the banks even more money. It is not that Wall Street is filled with geniuses that makes banks like Goldman Sachs profitable. It is that government officials are so stupid in letting them be greedy and take bonuses while they do nothing to help homeowners who are underwater. Meanwhile banks have the homeowners as victims to milk dry with new forms of fixed charges. We have Obama to thank for all the new bank tricks used to make Americans late in payments so they can be charged bank interest that often exceeds 20% while banks only borrow at 0.5% interest at the expense of American taxpayers. We have Obama to thank for our failing infrastructure. The bridges around Boston are rusting and the concrete piers are crumbling exposing rusting steel reinforcing in the cement. The trillions of dollars are going down the rat-holes of socialist Obama experiments investing in the likes of ACORN, big unions and big corrupt banks with incompetent socialist executives who contribute millions to socialist candidates.

World Outlook
U.S. stock-index futures declined as Greece and Ireland led a surge in the euro region’s budget deficit, re-igniting concern that mounting government debt may derail the economic recovery.

Crude futures close just 17 cents lower overnight. Rising inventories provide little incentive for buying.

Week's Economic Calendar
Apr 19 Leading Indicators were higher again. One reason for this is because the indicators are incestuous since one it is the Stock Market itself.

Recently:
Wall Street continues to spin profits seasonally adjusted or not… depending on which fools investors more. Wall Street wants the companies to make optimistic predictions but Wall Street low balls its expectations to deceive investors into thinking times are booming. The economy is not booming, instead default rates are going down because banks are foreclosing at a faster rate now than ever before.

Crude inventories rose more than forecast last week while gasoline inventories jumped despite expectations for a dip, according to government data released Wednesday. Crude inventories rose by 3.9 million barrels, or 1.1 percent, to 370.6 million barrels, which is 17.2 percent above year-ago levels, the Energy Department’s Energy Information Administration said in its weekly report. That is the highest inventory level since September 1990. Oil investments therefore are likely to decline as inventories continue to climb.

Apr 22 8:30 AM Initial Claims 04/17:
Apr 22 8:30 AM Continuing Claims 04/10
Apr 22 8:30 AM PPI Mar
Apr 22 8:30 AM Core PPI Mar
Apr 22 10:00 AM Existing Home Sales Mar
Apr 22 10:00 AM FHFA Home Price Index Feb

Apr 23 8:30 AM Durable Orders Mar
Apr 23 8:30 AM Durable Orders ex auto Mar
Apr 23 10:00 AM New Home Sales Mar


Market Outlook April 22

Wednesday the broader NYSE declined modestly on slightly higher than normal volume again showing the stock market is extremely inflated and ready to drop. The volume corrected NYSE continues to be below the high that was first set in September of 2009.

World Markets
Asian markets were down last night; Shanghai down -0.2%, Hong Kong down -0.3%, India up 0.6%, and Japan down -1.3%.

European markets are currently down in the range from -0.8% to -1.3 % this morning about half way through their day.

Today US pre-market futures are down -0.4% to -0.7% at 7:30 AM EST.

John P. Hussman, Ph.D. this week says:

"As of last week, the stock market remained characterized by strenuous overvaluation, strenuous overbought conditions, overbullish sentiment, and hostile yield pressures. The fraud charges brought against Goldman Sachs by the SEC may or may not provide a catalyst for market weakness, but significant risk is already baked into observable market conditions. The present syndrome tends to be followed by large and abrupt losses (though with somewhat unpredictable timing)."