Only 47% of Americans still pay federal taxes, 40% actually get money back by filing for credits while giving nothing.

Only 47% of Americans still pay federal taxes, 40% actually get money back by filing for credits while giving nothing.

Louisiana Senator, Mary Landrieu (D) asked Congress for 250 billion dollars to rebuild New Orleans. If you are one of the lucky 484,674 residents of New Orleans (every man, woman, and child)
You each get $516,528. Or... if you have one of the 188,251 homes in New Orleans, your home gets $1,329,787. Or... If you are a family of four...your family gets $2,066,012. This is part of the corruption of the Obama regime.

When the socialists put together their coalition of unions, state and federal workers, and that indigent 40% who pay no taxes but file anyway to get a share of your money then it will be the end of the American Republic and the beginning of yet another corrupt banana republic. Remember only thieves think your money is their money to spend.

World Outlook
China stopped approving permits to import soybean oil from Argentina, the world’s main supplier of the edible oil. China acted after the Argentina increased antidumping measures against Chinese imports. China dumps its products worldwide and reacts with trade wars when other nations resist the dumping.

Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk City.

Week's Economic Calendar
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.

The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.

The U.S. trade deficit, which measures the gap between national exports and imports, is up by 7.4% over the previous month. The trade deficit climbed to $39.7 billion as both imports increased at a greater rate than exports. This means the great projected American productivity increases that have been reported may not be real because if American productivity improved faster than the rest of the world the deficit would decline.

Yesterday:
Retail sales rise a healthy 1.6%, average hourly earnings for US workers fell 0.2%, and consumer prices were up a slight 0.1 percent in March. FED's Beige Book indicated that the FED thinks the recovery has started and it is only eight months after Jimmy Cramer imagined the recovery started. The stock market predicted the recovery 13 months in advance.

Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production

Friday, April 16:
Housing Starts
Consumer Sentiment


Market Outlook April 15

The market went up yesterday to touch its earlier two highs (prices adjusted for volume). The cause was the corruption of Wall Street by the FED flooding Wall Street with taxpayer dollars. Wall Street returns the corrupt favor by pay themselves obscene bonuses. Congress responds by steal more money for their salaries and expenses such as having three Airforce jets take family members on vacations. The way the Obama Regime funnels the money to corrupted institutions is by letting the corrupt cohorts borrow taxpayer money at 0.5% interest and then invest the virtually free money in Treasury bonds at close to 4% interest. That amounts to free, risk free money direct from American taxpayer wallets. And only 47% of American are currently taxpayers. Obama is slowly destroying America by essentially giving away treasury bonds free to corrupt Wall Street who contribute heavily to the campaigns of the corrupt democrat-socialist congressional elite. That is highway robbery and will bankrupt America as fewer and fewer people pay taxes. The IRS is now going after small businessmen who handle a lot of cash. The growing American underground economy and black market is the result of Americans coping what Europeans do in socialist countries to avoid being mugged at tax time every year.

The market rose yesterday on Morgan Stanley's obscene profits from the FED's corruption of Wall Street. The truth is that the management of Morgan Stanley is one of the most incompetent as well as corrupt. Morgan Stanley, which once stupidly ran the biggest property-investment arm among Wall Street banks, expects to lose another $5.4 billion, or 61 percent, of its $8.8 billion global fund from 2007. Things were so bad last year that the profit gains this year are exaggerated to be up 55%, so incompetent and corrupt Wall Street, flush with all the free FED cash pumped more of their borrowed taxpayer money into the stock market. Yes, Wall Street does not have to invest the money they borrow in risk free treasuries. They also buy stocks that are overpriced today just as they financed mortgages by indigents for homes that were overpriced in 2006 and 2007. A stock market crash now would increase the US debt burden enormously because this whole 13-month premature stock rally has been taxpayer financed with the FED stimulus package. It is the dumbest thing Obama and the FED have done to date.

The NYSE closed up yesterday on higher volume for the first time in a week sending the volume corrected NYSE back to the same highs of September 20 and January 11. The uncorrected NYSE has shown succeeding new highs just as the other markets. The NYSE volume may not be accurate but at least it is no completely fabricated as other volumes are. Most other indices do not report the volume of transactions in their own indices but rather just report NYSE volume for any index. Just look at what they report for the DOW, NASDAQ and S&P. Corrupt Wall Street now reports garbage rather than transaction value for most things. Wall Street is obviously defrauding the government by manipulating their tax obligations downward in addition to their highway robbery through the bailouts and stimulation package.

Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.


World Markets
Asian markets were flat over night; Shanghai down -0.1%, Hong Kong up 0.2%, India down -1%, and Japan up 0.6%.

European markets are currently flat in the range from -0.1% to 1 % this morning about half way through their day.

Today US pre-market futures are down 0.2% to 0.3% at 8:30 AM EST. We expect the markets to crack sharply soon under the uncertainty of higher taxes to cover socialist corruption and spending of $trillions on vote buying corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.