30 college deans now are given more than $1 million salaries as tuition increases and scholarships disappear.

30 college deans now are given more than $1 million salaries as tuition increases and scholarships disappear.

International stock markets plunge as Great Depression fear grows. California faces bankruptcy as it spends an additional $6 Billion to create a 25.4Billion deficit this fiscal year. In just six months, instead of cost cutting California deficit spending increased 24%.

International trade wars reminiscent of the Great Depression loom as Obama says USA will continue to take unilateral action to offset China and S. Korean currency manipulation.

California and New York remain the municipal trouble spots of the USA. Fear of another freeze up of municipal bonds loom. Now Bonds are put at risk by the 2.5% FED inflation goal and municipal bond defaults. The first FED purchases will be today!
General Electric/MSNBC/Pravda's Jimmy Cramer panicked Thursday and finally told listeners to buy gold just as his trader buddies at the smart funds have begun unloading their gold investments. Jimmy is the architect of pump and dump for the funds. A soon as his fund buddies had their long term gains and their stocks are at their 52 week highs he told his listeners to accumulate while the funds began selling. Ignorant and outrageous buy recommendations are being made now to offload hedge fund gold/silver investments on ignorant listeners.
Cisco gave a poor prognosis for the future revealing that the corporate spending on productivity has slowed.
Iraqi government gels after a year of squabbling.

World Markets:
Nine Russian reporters were beaten to death this year. The latest had his head, hands and legs crushed with a baseball bat. The Russian government is also continuing to prosecute another reporter who has had his skull crushed because local politicians accused him of slander. He is no longer aware of his brain damage and the prosecution amounts to persecution of his entire family now. This is where national gangster socialism leads. Hitler and Stalin were Nationalist Socialists too.

The Chinese consumer advocate who complained when his son was poisoned by Chinese milk supplements was sentenced to two years in prison. The sentence amounts to persecution of his entire family now. This is where international socialism leads.

All socialist dictators employ much more genocide than banana republic dictators do. Western socialists are only free because they are still American allies because the USA rescued them from Hitler and Communism. The socialists including Obama are working hard to make America a socialist state too.

The EURO will come under pressure now and the dollar will rebound because Portugal, Spain, Italy, and Ireland have more rioting. QE2 last week seemed to show a stronger dollar and there is little reason to suspect it will have much more than the goal of 2% to 2.5% core US product inflation. The main effect is to raise inflation expectations so that businesses must put their cash back to work. A core product cost inflation of 1% to 2.5% is the goal. The inflation of raw materials prices could be much higher but the efficiencies of production improvements offset raw material price increases.

Last week:
Goldman expects oil price surge in 2012 as world economies all grow in unison. Gas prices rose to over $3 /gal at the pumps again.
Wholesale Inventories Sep rose 1.5% after rising 0.8% last month and then shifting 0.4% from this month back on to last month. In other words they want us to believe that the federal government is so incompetent that their methodology errors are 50% of the thing they are trying to measure. Most competent organizations can keep errors to less than 10% of what they are measuring or else they go out of business. The USA should fire the department that generates the figures and bid the work to private companies.
MBA Mortgage Applications 11/05 +5.8% -5%
Initial Claims 11/06 - 435K declined from 457K, good
Continuing Claims 10/30 - - 4301 declined from 4340, good
Trade Balance Sep -44B Imbalance declined from -46.3B, good
Export Prices ex-ag. Oct 0.7% rose from 0.3%, good
Import Prices ex-oil Oct 0.3% remained same 0.3%, OK
Crude Inventories 11/06 -3.3M declined further -2M, inflation is considered good now
Treasury Budget Oct -140B deficit declined from -176.4B, also good
Disney, Cisco, and others surprise with losses and downbeat forecasts.
Nov 12 9:55 AM Mich Sentiment Nov rose to 69.3 from 67.7 as new tea-party focuses on the principles and freedoms the Founding Fathers advocated. 

Economic Calendar
This week:
Nov 15 8:30 AM Retail Sales Oct
Nov 15 8:30 AM Retail Sales ex-auto Oct
Nov 15 8:30 AM Empire Manufacturing Index Nov
Nov 15 10:00 AM Business Inventories Sep

Nov 16 8:30 AM PPI Oct
Nov 16 8:30 AM Core PPI Oct
Nov 16 9:00 AM Net long-term TIC Flows Aug
Nov 16 9:15 AM Industrial Production Oct
Nov 16 9:15 AM Capacity Utilization Oct
Nov 16 10:00 AM NAHB Market Housing Index Nov

Nov 17 7:00 AM MBA Mortgage Applications 11/12
Nov 17 8:30 AM CPI Oct
Nov 17 8:30 AM Core CPI Oct
Nov 17 8:30 AM Housing Starts Oct
Nov 17 8:30 AM Building Permits Oct
Nov 17 10:30 AM Crude Inventories 11/13

Nov 18 8:30 AM Initial Claims 11/13
Nov 18 8:30 AM Continuing Claims 11/06
Nov 18 10:00 AM Leading Indicators Oct
Nov 18 10:00 AM Philadelphia Fed Nov

Market Outlook Nov 15, 2010

Market continues showing signs of topping.
Silver and gold plunged from highs the day after GE/MSNBC/Pravda JCarter told listeners to buy, buy, buy gold. Instead it went by, by, by gold.

Since Oct 28, 2009 our market cash flow index has shown cash flow out of the market and the flow out hit its peak the third week of May. On a cash flow adjusted basis the recent new highs in the market averages did not surpass the previous high and it is still as low as during the free-fall following Lehman's collapse. Therefore it tells us this mini-bear market is still active.

It would be a bad idea to short commodities even though we do expect another market decline soon. We expect the FED to be successful and for core price deflation to end this year. We would buy at cyclic lows and be wary of shorting the market other than to balance out alpha trades where quality is bought and weak companies in the same sector are sold short.


World Markets
Asian markets were mixed last night after the plunge last week. China's market was up 1%, Hong Kong down -0.8%, India up 0.8%, and Japan up 1%.

European markets are mixed this morning in a range of about +0.2% to -0.7% about half way through their day.

US pre-market futures were up about 0.4% at 7:30 AM EST.