Financial Regulation loses two votes

Financial Regulation loses two votes

Due to a death and a vote switch the new Wall Street regulations could be at risk.

The first hurricane of the season could be shut down BP repair work and puts other deep-water rigs at risk.



World Markets:
We expect the EURO will continue to decline and help European sales such that the prudent plan to cut 25% from the government labor force will succeed.

Greek Communists strike throwing EU austerity programs up for ridicule. Tourists in Greece are caught in the middle. Until Greece is thrown out of the EU or the Greek Government actually takes action the Greek government and unions will continue to destabilize world finances because Greece is the poster child for the destructive capability of unions that bankrupt governments. Greece is a poster child for why Obama's bailout of the unions and government job stimulation is the most destructive action Obama has taken to date.

Economic Calendar
Last week:
GDP Deflator Third Estimate Q1 another unexpected downwardly revision to first quarter GDP growth (2.7 percent vs. 3.0 percent), with a large reduction in first quarter final sales growth to 0.8 percent from 1.4 percent. This is Obama fraud in fabricating the high initial numbers so his liberals, socialists, and communists could claim an robust 3+% recovery and then switch gears and lower the first quarter numbers so that the second quarter do not show a serious double dip. That is the way communist countries have always operated. They are pretend societies where people pretend to have real work and pretend not to be starving. Their governments hire 200 people to do the work of 50 people just to pretend the economy is robust.

U Michigan Sentiment - Final June rose to 76% from 75.5%. - Good news

Yesterday
Personal Income May rose 0.4% the same as initially reported last month. -Good news
Personal Spending May up 0.2% better than the 0% reported last month. - Good news
PCE prices up 0.2% or 2.4% per year- good and not inflationary

Today
Jun 29 9:00 AM Case-Shiller 20-city Index Apr
Jun 29 10:00 AM Consumer Confidence Jun

The Week Ahead
Jun 30 8:15 AM ADP Employment Change Jun
Jun 30 9:45 AM Chicago PMI Jun
Jun 30 10:30 AM Crude Inventories 06/26

Jul 1 8:30 AM Continuing Claims 06/19
Jul 1 8:30 AM Initial Claims 06/26
Jul 1 10:00 AM Construction Spending May
Jul 1 10:00 AM ISM Index Jun
Jul 1 10:00 AM Pending Home Sales May
Jul 1 2:00 PM Auto Sales Jun
Jul 1 2:00 PM Truck Sales Jun

Jul 2 8:30 AM Nonfarm Payrolls Jun
Jul 2 8:30 AM Unemployment Rate Jun
Jul 2 8:30 AM Hourly Earnings Jun
Jul 2 8:30 AM Average Workweek Jun
Jul 2 10:00 AM Factory Orders May


Market Outlook June 29, 2010
Market volume was 24% lower than usual on the slight market decline. That is generally a good sign. But until Greece gets spending under control the government bond investors will be in distress. The low returns they receive are only justified by expected low risk. As risk increased the EU debt problem will become relentless because interest rates will increase and people will stop buying their bonds.

GE/Pravda/Jim Cramer continues to become more negative and they are usually 180 degrees out of phase.
It looks like we are close to recent lows. But now he is admitting that government meddling is the cause of the current economic problems.

Today world markets are reeling again because unions have so much power to destroy socialist economies where the leftist give into their coercion and then the unions think they paid into their 50-55 yr. age retirement programs when the taxpayers are the ones who did.



World Markets
Asian markets were down sharply last night. Shanghai down -4.3%, Hong Kong down -2.5%, India down -1.4%, and Japan down -1.3%.

European markets are down in a range of about -1% to -2.9% this morning about half way through their day.

US pre-market futures are down -1% this morning. U.S. Futures are a snapshot of the moment and do not correlate with what happens by the end of the day.

Never before have Americans been faced with a president advancing the causes of a coalition of leftist, the lazy, the ignorant, the incompetent, the illegal, and the perverts. However, Obama is pretty much exposed now for what he represents and we are seeing the leftists being defeated in most regions of our country. It is the intent of the leftists to create a permanent underclass in America of leftist, the lazy, the ignorant, the incompetent, the illegal, and the perverts so that the socialists will have the absolute power of Communism. This trend is growing in the world even though Communism has been a long-term economic and social failure everywhere it has been instituted. In the transition though the Marxists can make a lot of money. Just look at the salary increases their friends and relatives get through corruption of nepotism and influence peddling. Look at Obama's family in the last six years. So it is the red brigade that brings down the economy that gets rich. But history tells us the next stage becomes extortion and murder and then the refugees start to flee the oppression. Finally the reds build walls to imprison their populations to extort the last bit from them. Once they get started they are virtually impossible to stop.