Is the Obama investigation of Wall Street due diligence or more political corruption?

Is the Obama investigation of Wall Street due diligence or more political corruption?

The democrat-socialists are having a difficult time raising money this year for their election war chest especially when you consider how much money they took in during the credit crunch in 2008 when even city bonding auctions dried up. Corrupt politicians always love to start their dirty political investigations just before elections because corrupt businessmen and drug cartels know that is the time when corrupt politicians collect their dues from the stingy crooks. They also like to investigate honest opponents at that time to drag them trough the mud.

They investigated President Ronald Reagan because he gave the Iranian Ayatollah a Bible and they then made a fool of themselves investigating Col. Oliver North. The evil that the democrat-socialists perceived and wanted to expose was that the US was quietly supporting opponents of Communism in Central America. About 99% of Americans thought supporting opponents of Communism in Central America was a good idea so the corrupt socialists lost that election just as they are being crushed in every local election in the USA this year.

The democrat-socialists expanded their investigation today as they throw out the nets for contributions. Soon we will know if they are actually honestly seeking to stop Wall Street corrupt ethics and practices or whether they are just extorting political contributions to turn off the heat on corrupt contributors and turn up the heat on honest businessmen who do not heed the extortion notice.

World Markets:
It is very likely that Chinese capitalism will fail this year as miserably as Russian capitalism failed in the last decade. However, they may become less communist and survive similar to the way Russia is today with a much reduced growth rate but still much better than under communism. Then it will again be time for Americans to invest in China. Housing prices in China are more distorted today than they were in Japan in 1989 just before the Japanese boom went bust. It appears the Chinese bubble will burst soon, perhaps even this year but not until a recession begins and the Chinese experience rising unemployment as they had in 1997. When unemployment rises the housing bubble will burst and they will experience what America has experience since 2007.

In the past American free enterprise has always provided a stable currency and has always bailed out the world by advancing world wide technology faster than socialist fascists and Communists could destroy wealth. But with American socialists now carving up and consuming American free enterprise... that era is coning to an end. Americans must rise up in November and throw out the socialists before it is too late and the socialists create a permanent economic underclass that votes 90% to 99%for socialist tyranny to take care of them cradle to grave.

Economic Calendar
This week
Lower ratings and ad revenues, and higher costs at Walt Disney ABC television network upstaged a turnaround at its film division and its shares fell 3.5 percent. Revenues in the media networks division, home to cable networks like ESPN and broadcaster ABC, rose 6 percent to $3.8 billion, but operating income was flat at $1.3 billion. Within the division, operating income at Disney's broadcasting networks fell $39 million to $123 million primarily due to decreased primetime and news ad revenues at ABC TV network and higher programming costs.

View three years of the following not three or six months like Jim Cramer shows to deceive listeners.
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND

The British central bank left its benchmark interest rate at 0.5 percent, where it has been since March 2009. It also decided to leave unchanged its program of buying government bonds and other assets to revive the economy. That program currently stands at £200 billion, or $296 billion.

Inventories at U.S. wholesalers rose for a third month in March, but sales climbed even more, a signal companies will need to step up orders to try to meet demand. The 0.4 percent gain in the value of stockpiles followed a 0.6 percent increase the prior month, the Commerce Department said today in Washington. Sales gained 2.4 percent, the most since November. The amount of goods on hand compared to sales dropped to the lowest level on record, indicating factories will need to keep increasing production.

Yesterday
The trade deficit in the U.S. widened in March to the highest level in more than a year as the cost of imported oil climbed and companies restocked shelves with goods bought abroad. The trade deficit stands to get much worse as the world debt crisis (especially the European crisis) pushes the dollar up against the euro and obviates the need for China to revalue higher. Ultimately Obama's policy will shift the crisis to America and the American currency will collapse. But the American debt crisis will not begin until Obama tax and spending kicks into high gear next year and crushes the American recovery.


Thursday, May 13:
Unemployment initial claims

Friday, May 14:
Retail Sales
Industrial Production
Consumer Sentiment, Mich.

Market Outlook May 12, 2010
The markets climbed on very low volume yesterday indicating that there are very few bulls driving up the market and that the bears have covered themselves already and are not at risk of a short squeeze. The market bounce was quick, the re-testing was quick and partial and now a more gradual advance to near previous highs could take from 4 to 8 weeks. The average investors (who cannot use volume) think the bull market had successive highs and held above the necklines during the declines. They therefore the next market high can be higher than the last one. That is what the average investor thinks.

Many stocks and stock sectors did not re-test lows but in fact have left gaps near their lows. Technically I have never heard a good reason why markets always seem to close those gaps but I have seen that happen over and over. That technical phenomena alone could cause a retest of the lows within six weeks.

But then since the average investor will be told by GE/MSNBC/Pravda to expect a new high we expect the market will rise close to the previous highs (in 4 to 8 weeks when we want to sell everything). The average investor will expect a new high but we expect this time the raw price history as well as the volume corrected history will both fail to have a new high. Our volume adjusted NYSE price information will not likely even come close to its previous high. That advance should happen probably over 4 to 8 weeks. Then we expect a 1 to 2 week second downward market plunge. The average investor will expect that decline to be supported at the low price close of last Thursday. We however expect that resistance will be cut like butter by a hot knife perhaps with inter-day low averages as bad as last Thursday. We do not expect the individual stocks will duplicate last Thursday but the averages could. For instance the inverse silver prices actually declined during the day last Thursday but with communism being rewarded in Greece we expect Europeans to turn to gold, diamonds, art and other solid material goods. We expect precious metal ETFs to soar, but because they have no intrinsic value we expect they will then collapse dramatically. The Chinese and Indian industrial shakeout problems should become clearly visible by then as well. Those new market lows that are likely this summer will likely be the best buying opportunity of this year.


World Markets

Asian markets were up last night; Shanghai up 2.1%, Hong Kong up 1%, India up 0.4%, and Japan up 2.2%.

European markets flat today in the range from 0% to +0.6% this morning about half way through their day.

US pre-market futures appear manipulated as usual.

John P. Hussman, Ph.D. this week reports:
"Greek Debt and Backward Induction
The bottom line is that 1) aid from other European nations is the only thing that may prevent the markets from provoking an immediate default through an unwillingness to roll-over existing debt; 2) the aid to Greece is likely to turn out to be a non-recourse subsidy, throwing good money after bad and inducing higher inflationary pressures several years out than are already likely; 3) Greece appears unlikely to remain among euro-zone countries over the long-term; and 4) the backward induction of investors about these concerns may provoke weakened confidence about sovereign debt in the euro-area more generally."

Street Smart this week reports
A Trillion Dollars Buys Only a One-Day Bounce?
Financial Reform Becomes Sillier As It Proceeds.