Is today the day an overdue sharp sell-off begins?

Modern bankers have become inbred idiots like the European Aristocracy when America won independence from them. One thing that unites all Americans is is an expectation that many on Wall Street will go to jail before America has any confidence in the government, the FED, and the Treasury. Any Republican who opposes the prison containment of the stinking Wall Street moral hazards will be voted out in November 2010 along with the American liberty despising socialists. Good people everywhere think that if the Wall Street monkeys want to be paid like an aristocracy then they should lose their heads like the aristocracy.

Goldman Sachs Group Inc., the only company to profit from the collapse of the housing and derivatives markets, will face off again against a U.S. Senate subcommittee today in a pivotal hearing that could have repercussions for the future of the financial industry. Goldman had inside knowledge that the mortgage derivatives were worthless and bet against them without reporting the problem so that the FED could prevent a total collapse.

CAT price was as high yesterday as it was in 2008 when its earnings were four times as high as it is now. The training PE is 50.97 and while it's PEG is infinite its 5 year best possible estimate says it could get down to a PEG of 1.6. Generally 1 to 2 is mediocre and over 2 is a poor PEG ratio. This means CAT is overpriced by more than a factor of two relative to 2008 before the bubble burst. Yet it was reported to be good news because CAT finally made a small profit after 1.75 years. The stock market is now being held high by pure hype and nonsense advice.

The stock Market remains at a record overbought level as $trillions of taxpayer money is squandered by the socialists who plan to put a neo-communist woman on the Supreme Court. Communists think they represent a segment of the people who are above the law. In America we have always had justices who have kept America a government of laws not a government that is sometimes a majority but historically transitions to a small minority. The Nazi and Communist type political machines seldom have exceeded 1% of the victim country’s population when dictatorship was established.

World Outlook

Crude oil is at the highest inventory level since September 1990. Last week the oil glut was up by another 3.9 million barrels, or 1.1 percent, to 370.6 million barrels, which is 17.2 percent above year-ago levels when the economy was stalled, the Energy Department’s Energy Information Administration said in its weekly report. Yet the price of gasoline is near $3 per gallon. Oil investments therefore are likely to decline as inventories continue to climb. The explosion of a rig in the Gulf will however drive the costs of drilling oil higher.

Contrary to what Jim Cramer hypes, the Baltic index says world trade is not recovering; it is down 70% and flat.
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND


Week's Economic Calendar

Yesterday the Treasury bill auction held another record breaking amount as nearly 150 billion were auctioned between 3 months to 7 year duration. The overall Bid/cover has been very healthy at 2.9 and even with Chinese sitting out. America is falling deeper into debt at the fastest rate since the last World War against the Nazis and the Japanese imperialists.

Tuesday, April 27:
Housing 20 city Price Index
Consumer Confidence

Wednesday, April 28:
FOMC announcement
Crude inventories

Thursday, April 29
Unemployment claims

Friday, April 30:
GDP
Mich. Consumer Sentiment


Market Outlook April 27

The volume corrected NYSE index continues to be a few percent below the high that was first set in September of 2009. There is no valid transaction volume reported for the other indexes. Why does the SEC allow fictitious transaction volumes to be reported? We have computers today and truth can be easily published instead of Wall Street fabrications? Allowing the reporting of fictitious trading volume is just the tip of the iceberg.

World Markets
Asian markets were down sharply last night; Shanghai down -2.1%, Hong Kong down -1.5%, India down -0.3%, and New Zealand down -0.4%.

European markets are down sharply in the range from -0.7% to -1.7 % this morning about half way through their day.

Today US pre-market futures appear highly manipulated again and are down 0.1% to 0.3% at 8:30 AM EST. The market valuations establish asset values so manipulating the values higher allows a firm to increase its leverage and take on higher risks. The problem is growing because the FED is having US taxpayers absorb the risks by bailing those deemed too big to fail. That just encourages speculation. The banks long ago depended on people who saved money. Now the banks get essentially free money from taxpayers channeled through the FED and Treasury. Then the self appointed bank morons have their appointed directors give them big bonuses because they think they are so smart and they think the US voters, the US Congress and the US President are obviously shills that they can shake down.

John P. Hussman, Ph.D. this week says:
"As of last week, our most comprehensive measure of market valuation reached a price-to-normalized earnings multiple of 19.1, exceeding the peaks of August 1987 (18.6) and December 1973 (18.3). Outside of the valuations achieved during the late 1990's bubble and the approach to the 2007 market peak, the only other historical observation exceeding the current level of valuation was the extreme of 20.1 reached just prior to the 1929 crash. The corollary to this level of rich valuation is that our projection for 10-year total returns for the S&P 500 is now just 5.3% annually. "

This week Sy Harding asks, "Are Major Financial Firms Manipulating the U.S. Market?"