China is on the correct housing path

China is on the correct housing path

China is deflating the housing bubble by increasing production to drop prices. Rising prices was the mistake Japan and the USA made because that encouraged buying houses for speculation and house flipping instead of buying housing because you need it. By cooling prices while increasing production China out smarts Wall Street's empty talking heads who don't understand the difference between responsibly housing a nation of people and allowing Wall Street to pick the pockets of greedy speculators in a housing bubble. In the end Goldman Sucks, Merrill Leech, and other Wall Street criminal firms fleeced many Americans and widows and orphans worldwide.

The euro posted strong gains again as markets recovered worldwide. Even the communists at GE/MSNBC/Pravda have stopped trying to talk up fear and create a Great Depression. Fear is what drives all economic downturns. Obama took a mild Bush recession in 2008 and called it a Great Depression. Never before had America produced a presidential candidate stupid enough and irresponsible enough to create a worldwide panic just to get his ignorant leftists into the highest American political offices. That is all Obama knows… bad mouth and do nothing, bad mouth and do nothing, bad mouth and do nothing, bad mouth and do nothing, bad mouth and do nothing, bad mouth and do nothing, bad mouth and do nothing, bad mouth and do nothing ad infinitum.

The coming Obama Great Depression is only a year away after Obama's taxes, bloated government and spend-spend policy goes into full effect. Americans need to vote all these leftist idiots out of office this fall and
1. shrink government,
2. stop subsidizing socialist anti-American unions and ACORN type organizations,
3. cut taxes on investment,
4. and reduce government spending especially civilian dominated government agencies like NASA, Fish and Wildlife, EPA, and the Army Corps of Engineers which are all now run by the leftist global warming fools. Those federal agencies should be cut down to the 5% of the staff who actually are not brain-dead. We should replace them with a few cranky scientists and engineers who actually know something and can actually do something that benefits the world.


World Markets:

Economic Calendar
U.S. consumers started buying big items again as store buying on credit declines. Credit-card balances declined for the 19th straight month, the Federal Reserve reported Monday. U.S. consumer credit (excluding real estate loans) rose by $1 billion to $2.44 trillion in April, a 0.5% annualized growth rate. It was only the second increase in outstanding debt in the past 14 months. Revolving credits, such as credit cards, declined by $8.5 billion to $838 billion in April, or a 12% annualized decrease. Nonrevolving credit, such as auto loans, student loans and personal loans, rose $9.4 billion in April, or a 7.1% annualized growth rate.

Wholesale Inventories Apr, no change from last month.
Crude Inventories 06/05, continued to decline, down 1.83M this time.
U.S. home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac Inc.
FED's Beige Book June, states that economic activity continued to improve in all twelve Fed Bank Districts. Today's report seems noticeably more positive than April's Beige Book

Yesterday
Jun 10 8:30 AM Initial Claims 06/05 were 456K compared to 453K reported last week. But they this week they raised last weeks number to 459K to deceive us again.
Jun 10 8:30 AM Continuing Claims 06/29 were down to 4462K compared to 4666K reported last week but again they doctored last weeks number to make this week look even better. The amount by which Obama has them doctor the numbers each week is more than the weekly change itself.
Jun 10 8:30 AM Trade Balance April improved very slightly from -40.4 last week to -40.3 this week.
Jun 10 2:00 PM Treasury Budget May deceased to $135,000,000,000 from a monthly deficit of $189.6B last month

This week
Jun 11 8:30 AM Retail Sales May were down -1.2% after being up 0.4%last month/
Jun 11 8:30 AM Retail Sales ex-auto May were down 1.1%
Jun 11 9:55 AM Mich. Sentiment Jun
Jun 11 10:00 AM Business Inventories Apr

Market Outlook June 11, 2010
The VIX or fear index seems to be subsiding now. See:
http://finance.yahoo.com/q/bc?s=%5EVIX&t=3m&l=on&z=m&q=l&c=


We got the pop right yesterday. It is not the end of the world in 1011 if we can throw out all the leftists this November.

Emerging markets and particularly Asian pro-shares continue to be very attractive now. The market has already corrected more than it did in 2004 at the end of the first year after the low point in the last recession. Then the market resumed rising sharply at that time. The Chinese Government said this week that exports out of the country were up 48.5% in May compared to a year ago, the biggest jump in more than six years.


GE/MSNBC/Cramer/Pravda reversed its negative market position and are beginning to become critical of Obama but still present biased coverage. Obama government pretend-to-work jobs paid for with higher taxes next year could drive America into a depression just like FDR's early socialist experiment did. FDR added seven years to what started out to be just a severe recession and it took a war and the loss of millions of lives to get out of FDR's Great Depression.

The world is holding its breath waiting for America to resume economic leadership. Wages are beginning to rise slightly indicating a reduced threat of depression but Obama taxes could end all U.S. economic growth.


World Markets

Asian markets were up last night following the testing of American markets. Shanghai up 0.3 %, Hong Kong up 1.2%, India up 0.8%, and Japan up 1.7%.

European markets are down a range of about 0.1% to -0.8% this morning about half way through their day.

US pre-market futures say nothing this morning. U.S. Futures are a snapshot of the moment and do not correlate with what happens by the end of the day.

A positive Chinese export economic report and early gains by the euro also helped lift all world markets yesterday. Also the EC is not raising interest rates yet.

We expect some rapid gains (market pops) interspersed with caution as investors realized the end of the world will not occur in 2011 if Americans throw all the commie-socialist-leftist-loonies out on the streets again after the American November elections.