Obama corrupt socialist Chicago politics brings national political corruption to new highs never seen in America before. Trillions of dollars are virtually untrackable. There is no place the public can go to see who is getting federal dollars and who is paying it back.
Representative Maxine Waters (D-CA) builds wealth by aiding firms her husband invests in.
Democrat Barney Frank's charity is himself. He pressures firms to make contributions to a monument to his ego.
Democrat Obama builds family wealth by favoring his wife's employer.
http://www.crewsmostcorrupt.org/summaries/mwaters.php
Representative Charlie Rangle's corruption disgusts Americans just a $600,000 omission of income in one investment alone while he was a Congressman. Senator Dodd agreed not to run for office the moment his corruption investigation began. When will Obama go on trial? It costs Americans $2Million/year to get his clerk wife a salary of $375000 per year. Clerks usually get about $37500 per year but they gave her a big title too.
Market volume has been uniformly very low since around the time Obama was elected. It could be that most investors are still disappointed and stunned by the speed at which Americans are losing freedoms with laws that are planned to go into effect after the socialists are thrown out so that the disaster will happen on the next watch when the taxes and redistribution of wealth go into effect. Then they will once again blame others for the problems they create. But the new Congress needs to show the socialists that their deceit will not work by first replacing the heads of the new social welfare offices and eliminating their support staff.
Bernacke to loosen American credit further to avoid a slowdown.
World Markets:
China markets stock recovered 11% thus far from June lows.
Corporations have cash but are also bulking up by selling corporate bonds to replace older more expensive debt at record low rates… allowing them to reduce the cost of their debt load. This will cause their income to rise substantially.
Corporate spending of their massive accumulated cash reserves is beginning to surge. That will come in two forms. Corporations that think they are undervalued will buy some corporate stock back. Secondly, corporations will upgrade their data processing to improve employee productivity. That will improve hiring and inject a lot of cash into the economy. Corporations had been sinks for cash all last year but will soon be a source of cash for economic expansion. That will more than make up for flat consumer spending and will in fact trickle down into consumer spending.
Good quarterly earnings reports came out and better reports will come. But fear of Obama National Socialism has people buying treasuries and not stocks. Socialist Obama and his socialist in Congress are feared to be attempting to make the Federal Government bigger than the private sector. It already employs more people than the top 500 corporations combined.
Economic Calendar
Last week
The world markets all rose handily last week and made July the best month this year.
Building Permits Jun rose to 586K from 574K. This is great! "GeneralElectric/MSNBC/Pravda lied again and said housing was disappointing! Nonsense, it was a 4% increase. Housing permits rose 4% in one month so future housing starts will be rising too at a similar rate!
New Home Sales Jun rose to 330K from 267K, up about 20% but still rising as summer gets under way. We don't need more new homes though even though it makes the economy look better.
Case-Shiller 20-city Index May improved 4.1% from 3.8%
Consumer Confidence Jul flat at 50.2 from 52.9
Initial Claims 07/24 dropped from 468K to 457K, still high.
Continuing Claims 07/17 Continuing claims rose to 4565K, they need to stop extending unemployment. It is now up to about 115 weeks.
GDP-Adv. Q2 +2.4% good, it is anti deflationary.
Chain Deflator-Adv. Q2 +1.8% good it is anti deflationary or good
Employment Cost Index Q2 dropped from 0.6% to 0.5%, good
Chicago PMI Jul rose from 59.1 to 62.3 which is good
U Michigan Sentiment - Final Jul rose to 67.8 from 66.5, good
Today
Aug 2 10:00 AM Construction Spending Jun
Aug 2 10:00 AM ISM Index Jul
This week:
Aug 3 8:30 AM Personal Income Jun
Aug 3 8:30 AM Personal Spending Jun
Aug 3 8:30 AM PCE Prices - Core Jun
Aug 3 10:00 AM Factory Orders Jun
Aug 3 10:00 AM Pending Home Sales Jun
Aug 3 2:00 PM Auto Sales Jul
Aug 3 2:00 PM Truck Sales Jul
Aug 4 8:15 AM ADP Employment Change Jul
Aug 4 10:00 AM ISM Services Jul
Aug 4 10:30 AM Crude Inventories 07/31
Aug 5 8:30 AM Continuing Claims 07/24
Aug 5 8:30 AM Initial Claims 07/31
Aug 6 8:30 AM Nonfarm Payrolls Jul
Aug 6 8:30 AM Nonfarm Payrolls - Private Jul
Aug 6 8:30 AM Unemployment Rate Jul
Aug 6 8:30 AM Hourly Earnings Jul
Aug 6 8:30 AM Average Workweek Jul
Aug 6 3:00 PM Consumer Credit Jun
Market Outlook Aug 2, 2010
The stock markets are approaching the 100-day moving average line where investors need to decide if it starts the next stage up or consolidates again. Recently each advance has shown improvement and each retraction has been weaker so upward momentum is building. A breakout this week is now more probable.
Fed Chairman Bernanke is pretty down when it comes to the economy. But we calibrated him and there is about an 85% chance that things get better when he is down on the economy. He plans to loosen credit more even though there is no double dip.
The cash infusion from corporations will soon let loose a bull market and a fresh expansion of the economy.
We expect a bigger rally to also follow if the corrupt socialists are voted out of office in November. Then Obama socialism can be stopped in its tracks. The imperatives are no new taxes, no new federal programs like Obamacare, and cut state and federal do-nothing jobs.
World Markets
Asian markets were up last night. Shanghai up 1.3%, Hong Kong up 1.8%, India up 1.2%, and Japan up 0.4%.
European markets are up in a range of about 1.5% to 2% this morning about half way through their day.
US pre-market futures are up at about 1.2% this morning.
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