Socialism is institutionalized theft.

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. The hospital then gave you (for instance Obama's wife) a fancy title, quadrupled your salary and you then went on to tap other government officials for more taxpayer money to justify the salary you got. Our founding fathers would say the senator who earmarked millions to his wife's employer was corrupt. They would say the political hospital administration was knowingly corrupt in rewarding the Senators wife for bringing in the free no-strings attached tax payer money that beats having to earn it legally. It is legal in the corrupt situation that our socialist "majority" government finds itself in. After all this, the president doesn't like the Constitution that protects the citizen taxpayers from the government. He wants a pro-active American Constitution that creates socialism for the majority to bleed the creative and enterprising Americans dry.

We all know the end of this story. This story always ends with the newly socialized country going down the drain.

World Outlook
The Baltic Dry index measures the health of world trade continues a serious decline that no doubt is why Jim Cramer has been ignoring this favorite indicator he uses. It means world trade is slowing,
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND

Last week the interest Greece had to pay on Greek bonds spiked to over 7% more than doubling the cost of carrying debt for Greece. A euro zone deal was then arranged for a huge standby rescue package for Greece, slashing the debt-laden country's borrowing costs and buying its stocks and bonds. The yield on short-dated Greek government bonds then fell by over a point to around 5.9 percent.

However, 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

Monday, April 12:
6month Treasury bill

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 12
The market closed up yet again on lower 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 down -0.5%, Hong Kong down -0.3%, India down -0.5%, and Japan up 0.4%.

European markets are currently flat in the range from 0% to -0.1 % this morning about half way through their day.

Today US pre-market futures are up about 0.6% at 7:30 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.

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.