Fed Chairman Bernanke calmed the markets

Fed Chairman Bernanke calmed the markets

The only problem is that it is the same policy Japan has had for twenty years of deflation. Deflation makes the yen worth more because Japan's prices keep falling. That makes the Yen stronger. We need to get inflation up close to 3% per year before China and others stop buying so many dollars and thus force Obama to stop spending the money of our children and grandchildren.

World Markets:
The world markets including China are now taking their cues from the USA.

Obama did not get smart yet and fire his leftist lunatic fringe economic advisors.

Toward the end of Clinton's first term he dropped Clinton-health-care and declared the age of big government had ended. With the advice of competent Morris (now a FOX News advisor), He proceeded to steal the Republican ideas of Gingrich and ushered in a period of growth and budget surpluses. Clinton did enough positives to make up for all his sex scandals. Obama on the other hand is still dangerously incompetent and frightens about 80% of the American electorate. He already has a 54% disapproval rating after a year in office, almost as bad a Bush at eight years after Obama leftist depression talk that caused the collapse of Lehman's and started the recession that Obama wanted so that he could punish the Bush Administration. Bush was accused by the lunatic left of killing Saddam Hussein and torturing Al quaeda Moslems by giving them baths and getting water up their noses. As a child, we used to hate getting dunked by older kids at public swimming pools and perhaps some day parents will shut down swimming pools with torture suits.

Economic Calendar
We are seeing manipulated leftist Obama government statistics again with wide data scatter and swing in corrections as big as the reported changes themselves. Leftists are historically corrupt and manufacture useless statistics as propaganda. Before the fall of the USSR, the Soviet Union, they reported record wheat harvests and repackaged American food aid in bags that said the food was grown from the USSR. Socialists and communists control their media and create favorable lies that the Nazis called propaganda. GE/MSNBC/Pravda is now under Obama socialist/communist control as are the major unions.

Last week:
Existing Home Sales July fell 27% the most in a decade. None of Obama's lunatic left economic medicine helped create private sector jobs that are needed to pay for the tax burden the lunatic left is creating. Biden (the idiot) was out telling people the recession is over as another half million Americans lost their jobs! The second quarter GDP growth estimate was lowered from 2.4% to 1.6%. The original first manipulated Obama number was over 3% more than twice the original number. In addition to the GDP figures, there are GDP deflators, which measure the change in prices in total GDP and for each component. The deflator was increased to 1.9%. That implies the growth was all from price inflation. In fact there may have been a 0.1% contraction in the second quarter. GE/MSNBC/Pravda did not report the contraction because that would show that giving the $1Trillion to bail out union and government worker pensions, to provide pretend-work green jobs, and to give thousands to welfare indigents and housing grants primarily to people of Obama's race… all failed to stimulate the economy one iota.

Today
Aug 30 8:30 AM Personal Income Jul
Aug 30 8:30 AM Personal Spending Jul
Aug 30 8:30 AM PCE Prices - Core Jul

This week
Aug 31 9:00 AM Case-Shiller 20-city Index Jun
Aug 31 9:45 AM Chicago PMI Aug
Aug 31 10:00 AM Consumer Confidence Aug
Aug 31 2:00 PM Minutes of FOMC Meeting 08/10 - -
Sep 1 8:15 AM ADP Employment Change Aug
Sep 1 10:00 AM Construction Spending Jul
Sep 1 10:00 AM ISM Index Aug
Sep 1 10:30 AM Crude Inventories 08/28
Sep 1 2:00 PM Auto Sales Aug
Sep 1 2:00 PM Truck Sales Aug
Sep 2 8:30 AM Initial Claims 08/28
Sep 2 8:30 AM Continuing Claims 08/21
Sep 2 8:30 AM Productivity-Rev. Q2
Sep 2 8:30 AM Unit Labor Costs Q2
Sep 2 10:00 AM Factory Orders Jul
Sep 2 10:00 AM Pending Home Sales Jul
Sep 3 8:30 AM Nonfarm Payrolls Aug
Sep 3 8:30 AM Nonfarm Payrolls - Private Aug
Sep 3 8:30 AM Unemployment Rate Aug
Sep 3 8:30 AM Hourly Earnings Aug
Sep 3 8:30 AM Average Workweek Aug
Sep 3 10:00 AM ISM Services Aug


Market Outlook Aug 30, 2010
The WSJ showed that in previous deep recessions the stoke market PE was as low as 5 and the historical average is 10. How can that be? Just five years ago Wall Street was telling investors the average historical PE was 18 and even 30 was reasonable for a growing corporation. This is a form of Wall Street fraud because when they want to scare investors they use this year's earnings to compute PE and when they want investors to buy at high prices they use a ridiculous optimistic future projected earnings. The number of investing Americans dropped 60% during the wimpy bleeding heart Jimmy Carter years and did not begin to recover until the President Ronald Reagan years. This latest WSJ report appears intended to drive the price of stocks even lower. But we are in a great buying area very close to the summer low. September is usually a great month but October has a fickle record of surprises both up and down.

There has never been more pessimism about American government and financial incompetence than right now since FDR introduced socialism and created the Great Depression. FDR then used WWII to get the USA out of the failed communist style jobs corps and phased out socialist programs. He used the cost of the war effort as the reason to cut the socialist jobs programs. Many grants went to reduce rural poverty but the programs did not last more than an average of two years, as they were unsustainable. One idea was the book mobile where people rode around the countryside to farmers with library books in the trunk and back seats. It was extremely inefficient but created jobs. Rationing of gas was the good excuse for cutting that program and other recycling jobs were created for the war effort. WWII saved the USA and all the Nazi conquered countries from National Socialism.

One cannot even mention leadership with this administration because they run from it and still blame others for their own stupidity and government corruption at all levels. Obama is giving many cash grants to people of his own race but has done almost nothing to reduce the number of mortgages in default possibly because his voter base is the one that got the mortgages with fraudulent don't ask don't tell Dodd and Barney Frank corruption. If Obama's ignorance results in another 10% decline in home prices, many more Americans will lose their homes and consumer confidence will plummet causing another burst of layoffs and even more mortgage defaults. The Obama administration is the most moronic administration in the history of the western world, but about on par for Indonesia and Africa his apparent homelands.

All Obama has to do to show he is not an illegal immigrant is to make public an original American birth certificate from when he says he was born in Hawaii and make public his college records to prove he was not registered as a foreign student. Only Obama can make them public because that information is not available to the public. Why is Obama the only American president to ever conceal that information? The lunatic left used to call President Bush dumb until Al Gore's Yale records were released and showed Al Gore was dumber. Thousands of illegal immigrants visit the USA each year so that their children can be born in America. Is the problem with Obama's birth certificate that his hippie mother hated America and had renounced her US citizenship and was Indonesian or Nigerian at the time? Why doesn't he release his records and show America the truth? Then perhaps we could quickly throw him out. Sooner or later the truth will get out.

What is technically wrong with this market is that it still needs to break again above the 20-day and 100 day moving averages. The May meltdown frightened a lot of people. It was not caused by a fat finger mistake. The automatic market system is flawed and unstable. It could happen again because like the Japanese car auto-acceleration problem, the SEC has no clue as to what actually caused the instability. And under Obama the SEC has another brain dead democrat-socialist appointee who has no time to investigate and fix the problem. They are too busy robbing the public coffers so they can retire in a year or two and the next Obama appointee can lose the vital records. The socialist use hundreds of crooks to make their thefts untraceable.

World Markets
Asian markets were up last night. Shanghai up 1.6%, Hong Kong up 0.7%, India up 0.2%, and Japan up 1.7%.

European markets are mixed in a range of about -05%% to +1% this morning about half way through their day.

US pre-market futures are flat in the range -0.1% to +0.1% this morning at 8 Am.

The only thing we have to fear is fear itself, which now consists of Obama, Gore, Bogoyevitch, Rangel, Waters and the other leftist crook democrat-socialists.