Some Congressmen in 2008 shorted the stocks of companies over which they had insider information or congressional oversight... said WSJ in its first p

Some Congressmen in 2008 shorted the stocks of companies over which they had insider information or congressional oversight... said WSJ in its first paragraph this morning.

Wall Street reported that some congressmen can and did short and therefore aggravate the panic that crushed the American economy in 2008. Investing in America is no problem just like buying gifts for ones husband or wife. But shorting America is tantamount to trying to poison one's mate and is a despicable behavior and should be illegal for American representative just as it is already illegal for government employees to short companies they regulate. It is akin to taking out a life insurance policy on someone because it implies you hope and expect they will die. When a congressman shorted a bank stock he obviously was not hoping that bank would survive unless that congressman pleads stupidity or mental incapacity.

Obama is selling Americans short with his, "Never let a crisis go to waste" socialist philosophy. Again Obama is betting against Americans because instead of managing a crisis he wishes to aggravate and use every crisis for his socialist agenda advantage the way the German National Socialists (Nazis) used every crises to get the votes needed to overthrow the German democratic Weimar Republic. After a while it became obvious the NAZI were not just using crises they were creating them. They even burned down the building their congress used. Like a good Nazi, Obama plans to use the BP oil spill to repress America with a cap n trade system to redistribute wealth to corrupt politicians like Al Gore. Gore is one who will gain the most from the fraud involved in blaming every natural environmental calamity on humans. Environmentalism has become the newest socialist religion akin to the belief that God rewards or punishes mankind for mans behavior. The only difference is the socialist do not believe in God they believe it is mother nature who is punishing man with volcanoes, floods, and earthquakes caused by mans sins against mother nature. Thou shall have no other gods before environmentalism! George Soros, Obama's financial benefactor says he wants the collapse of the western free market because a free market requires individual rights and liberty. He thinks the collapse will happen in a year or two.

Jim Cramer must be back on his medication, as he seemed rational yesterday. Apple profits are akin to selling alcohol and drugs to minors. They are getting American youth hooked on games that are just another distraction, an immature fixation on emotional highs, and a delusion that such a waste of their time gives them long-term social status. Apple turns students into foolish and ignorant technology groupies. Jim Cramer thinks Apple is the way of the future. More rational commentators think Apple is becoming a children's toy and just another game manufacturer exploiting children who lack maturity, common sense, and smarts. The deluded children destroy their future with unstable self-esteem based on reward for nonsense when the children should be home studying their real books. Apple is no more technologically advanced than the folks who sold those pants a hundred years ago with the belts that buckled up at the boys nipples… or the folks selling the pants to idiots today with the pant crotch down below their knees. Apple is just a modern hustler and depends on creating a market from the future morons of America who today think Apple makes them look cool and fashionable.


World Markets:
Throw the leftist lunatics out is becoming a worldwide cry not just an American phenomena. Socialist unions in Britain are preemptively demonstrating against common sense budget tightening. Socialists in France riot against raising the retirement age to 62. Socialists in Greece riot against having to live within their means.

It will be necessary in America to claw back the wealth that the city, state, and federal employee unions have stolen from the cities, states, and federal government by corrupting the arbitrage process and putting in leftist judges who side with the unions to bankrupt Americans.

When the Tea Party wins it will also be necessary to impeach the leftist judges who have no constitutional right to legislate and tax citizens in nations that follow the American constitution model. GM unions and city, state and federal worker pension funds must be nationalized and the money taken to support the Social Security system. The ALCU and unions need to be regulated and should pay taxes to replenish Social Security and Medicaid that they have savaged with costly litigation. The leftists get leftist judges to give unconstitutional and absurd decisions in favor of other leftists. Louisiana is known to have a county where this corruption is rampant and juries and judges can be bought by the dozen. That is where most class action suits are filed in America. That is pure and unadulterated trial lawyer corruption that must be ended.

This leveling of the playing field will provide the incentive for the corrupt leftist unions and politicians to join the productive worker force, the only producers of wealth, the only people who can pay their own way and support others with genuine needs. The Tea Party is the taxpayer's party now and must take office and claw back the wealth that the unions of state and federal workers have been stealing from taxpayers and our service men. Real workers fund our nation and warriors defend our nation with their lives. It is the leftist lunatic fringes represented by fools like Obama who suggested that the American warriors should be abandoned and have their pensions and health care cut. Every American warrior knows that. Every productive American knows that.


Economic Calendar
Earlier this week
Export Prices ex-ag. May up only 0.6% about half of last month allowing the FED to keep interest rates low.
Import Prices ex-oil May also up only 0.5% the same as last month.
Empire Manufacturing Survey Jun: The Federal Reserve Bank of New York’s general economic index rose to 19.6, an 11th consecutive month of improvements. Readings greater than zero signal expansion in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut.
Net long-term Treasury International Capital out-flows for April were down to 83 $Billion from 140.5$B the month before.

Yesterday
Housing Starts May were down to 593K from 659K which is a good sign because it does not make economic sense to be building houses when there is already such a glut that has caused the home prices to decline and put people underwater.
Building Permits May were down to 574K from 606k which is good for the same reason because we need home prices to rise at least 10%.
PPI May declined to -0.3% from -0.1% last month. This is deflationary pressure that will cause a collapse in the price of Gold if it continues. It means that the FED can continue to keep rates low for the time being.
Core PPI May remained at 0.2% which is very low (good) but could be dangerous if it goes negative as it has in Japan.
Capacity Utilization May increased to 74.3% from 73.7% which means there has not been a double dip in the economy to date.
Industrial Production in May increased 1.2% after increasing 0.8% last month. That means growth is accelerating. That means there is no double dip and no stagnation but rather accelerated growth and we are on an economic upswing now if this continues.
Crude Inventories 06/12 increased 1.6M the first increase in months and could show up at the pump as a decline in the price of gasoline.

This week
Jun 17 8:30 AM Initial Claims 06/12
Jun 17 8:30 AM Continuing Claims 06/5
Jun 17 8:30 AM CPI May
Jun 17 8:30 AM Core CPI May
Jun 17 8:30 AM Current Account Balance Q1
Jun 17 10:00 AM Leading Indicators May
Jun 17 10:00 AM Philadelphia Fed Jun


Market Outlook June 17, 2010

Britain reported continued economic growth, i.e. no double dip. Remember Britain confirmed the recovery before it happened in America and now they are confirming continued recovery, i.e. no double dip. That should bode well for the markets this week.

The market stayed above its 50-day moving average (50DMA) further reducing worries that we might have entered a bear market. The next potential resistance area is the (100 DMA) and then the March 15 highs.

Global equities are still at the cheapest level relative to bonds since the collapse of Lehman Brothers Holdings Inc., a sign that shares in the U.S. and Europe may rally or bonds will falter. It now looks more like a stock market rally and bonds will hold their own with little inflationary danger.

Emerging markets and particularly Asian pro-shares continue to be very attractive now. China is booming again. 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 the rest of that year.

The Chinese Government said last 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. That economic engine is working once more. European countries are now reporting the same.


World Markets

Asian markets were neutral last night. Shanghai down -0.4%, Hong Kong up 0.4 %, India up 0.8%, S. Korea up 0.2%, and Japan down -0.7%.

European markets are up a range of about 0.6% to 0.8% this morning about half way through their day.

US pre-market futures are up 0.5% 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 last week, the gains in the euro, and the EC holding low interest rates have turned the markets positive. Apple-like technology that exploits immature children and adults is losing its luster and consuming critically needed American Internet bandwidth.

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 leftists out on the streets again after the American November elections.

The alternative is not encouraging. Higher American taxes will allow more money for government pretend work and corruption. Gradually we will become more like Russia and Europe and lobbyist payoffs to corrupt politicians will be the only way to enter the drilling, mining and energy sectors. They call it regulation but government cannot regulate because government employees are generally incompetent. If they were competent they would not have to know a politician to get a job. Government does not regulate it just sets up hurdles that direct industry to a system of campaign bribes through fundraisers. Government politicians run on slush funds. That is why the Obamas went from community activist poverty to millionaires overnight. His wife's employer got a multimillion dollar federal boost and she got a $500,000 income when Obama became Senator. Fundraising is all Obama was been doing for 50 days while oil poured into the gulf. You buy their votes by contributing to their campaigns and favorite charities and by hiring their cousin Moe who can't read. Perhaps you make their cousin Moe a partner or your lobbyist?

The bigger the government the greater the corruption and the heavier the burden becomes on the Americans who produce and innovate. Ultimately leftists' governments lose their ability to stay modern except through piracy of innovation. Even the French and Israelis regularly spy on traveling Americans to keep up. We caught the Japanese spying on IBM here in the USA back in the 1980's just when Japan was at its peak in economic arrogance. Japan was the biggest technology pirate of all and their progress ended when they ran out of technology to steal and we began using other countries to manufacture our products so Japan lost their ability to steal everything first. When America becomes socialist, world progress will slow to the point that starvation, tribal genocide, and wars become the world's greatest preoccupation. When America becomes socialist the world re-enters the dark ages. We have to vote the socialist out of office as soon as possible. But we can't have Republican socialist appeasers like McCain either.