The new Obama administration policy. .. If it's good, the buck stops here. If it is bad, it was the prerogative of a federal agency and I was only b

The new Obama administration policy. .. If it's good, the buck stops here. If it is bad, it was the prerogative of a federal agency and I was only briefed.

We need to make real capital by stimulating business. Obama type consumer debt stimulation (Barney Frank) got us into the problem and Obama giving cash to ACORN and welfare folks is money thrown away because it can cause a sovereign debt problem and the next world crisis.

Obama fixing potholes is not infrastructure spending! Shovel ready projects are not infrastructure it is just maintenance of existing systems. Obama is doing nothing to benefit US infrastructure.

Keynes said spend, spend, and spend, not tax, tax, and tax more! Keynes did not say to raise taxes for more government jobs he said spend more by contracting private companies to do actual infrastructure work. Keynes did not recommend hiring more lazy government union and activist fools to regulate and restrict private sector job growth.


World Markets:
Follow the credit market not treasuries or stocks. The credit markets are saying there is no double dip going on in the economy. Asian markets surging too.

Economic Calendar
Last week
The jobless rate fell to 9.5 percent from 9.7 percent -good, the unemployable (those who cannot be depended upon) are no longer getting unemployment checks and are going back to the underground economy.

This week
ISM Services index for June declined slightly from 55.4 to 53.8 still expanding with normal variation.
Continuing Claims 06/26 fell by the largest amount, 24K this year
Initial Claims 07/03 reported dropped 21K this past week
Crude Inventories 07/03 dropped by the largest amount this year, -5M vs. -2M last time
Consumer Credit in May declined $9B indicating consumers are still unwinding debt.

Jul 9 10:00 AM Wholesale Inventories May

Market Outlook July 9, 2010
We got the start of the bounce again but on relatively low volume.

Credit may be cheap and available but people are borrowing a lot less. That is because the banks are trying to screw borrowers with large initiating fees that bring profit immediately to the Bank bottom line while saddling the borrower with higher debt than he wants. So in reality the low rates are not real there are fees attached that the mortgagee does not see until he pays the bank fee. Banks have a thriving business just collecting these mortgage initiation fees.

Retailers advanced as the International Council of Shopping Centers said sales were growing at the fastest pace since 2006, easing concern that a slump in consumer confidence will undermine the economic recovery. People with knowledge said European stress tests will pass and Europe may pay off the Greek bond loss which is now predicted to be half the original estimate of JPMorgan.

World Markets
Asian markets were up last night. Shanghai up 2.3%, Hong Kong up 1.6%, India up 1%, and Japan up 0.5%.

European markets are up in a range of about 0.3% to 0.6% this morning about half way through their day.

US pre-market futures are flat this morning.