Socialism is government of the corrupt, by the corrupt, for the corrupt.

How do you know who are the thieves. The thieves say your money is their money. Does that sound familiar?

Big government becomes contemptuous. It institutionalizes theft from productive people by government employees for government employees, unions, and a permanent sub class. The leftists want and create a permanent subclass of lazy uneducated people who will vote in socialists who share the wealth of the hard working Americans. They make up lies about how illegals work so hard. The fact is the only hard work they do is crossing the desert to enter America. Only leftist socialists hire illegal immigrants. No honest Americans hire illegals so if illegals ever are abused it is by corrupt socialists who hire them. Note that all the disclosures of new government appointments with having illegal alien housekeepers or having evaded taxes were socialist-democrat appointments. Good Americans do not exploit people so they have nothing to do with illegal immigrants.

Because socialism is institutionalized theft of the value of works of the creative and productive few it is quite natural for liberal leftists to think everyone is a thief not just they themselves. If everyone is a thief then it also naturally falls out that the money a thief has is not his own money. That is why Obama's economists declare that the money you accumulate is not yours. They assume you did not earn it just as they in their lavish life styles did not earn their money. They got their big bonuses because they knew or married a Senator who earmarked millions of dollars to the hospital at which you worked. We all know the end of this story. This story always ends with the newly socialized country going down the drain.

World Outlook

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.

Week's Economic Calendar

Yesterday
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.

Tuesday, April 13:
U.S. Trade deficit

Wednesday, April 14:
Consumer Price Index
Retail Sales
FED's Beige Book

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

Friday, April 16:
Housing Starts
Consumer Sentiment


Market Outlook April 13
Alcoa reported continuing losses as cutbacks in costs are no longer effective and could cause longer term corporate losses. Revenues continued to fall.

Palm hired lawyers yesterday to take it through bankruptcy court and possibly a buy-out or dismemberment.

The markets closed up very slightly again on average volume confirming the topping out of the American stock markets. The Dow index did not take off when it broke through 1000. On a volume-adjusted basis the market has not had a new top since the end of September. On a volume adjusted basis it is still more than 1% lower than last September.

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.

The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican National Committee is yet another big spender and is destroying the Republicans from the inside as GOP big spending on nude bar scenes turns off contributors. Now leftists claim he is being picked on because of his color not because he has not been raising money for candidate. Candidates are now soliciting for themselves. The Republicans are broke and the leftist loonies love it.

World Markets
Asian markets were down over night; Shanghai up 1%, Hong Kong down -0.2%, India down -0.2%, and Japan down -0.8%.

European markets are currently down in the range from 0% to -0.4 % this morning about half way through their day.

Today US pre-market futures are down about -0.3% at 8 AM EST. We expect the markets to crack soon under the uncertainty of higher taxes to cover socialist spending of $trillions on 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.

We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions). Now is a good time for smaller investors to buy a home and participate in the next housing bubble. Back in 2006 we advised that the housing bubble was peaking. It will take five more years for the bubble to begin expanding faster and up to 2020 to 2025 for the housing market to peak again. We believe that under leftist regimes the stock market will not rise more than inflation during this period.