Government Motors cooked the books to make it look like GM recently came to JESUS and got SAVED. Reds join with Obama government as the major stockho

Government Motors cooked the books to make it look like GM recently came to JESUS and got SAVED. Reds join with Obama government as the major stockholders.

I listened to the president of GM and he did not know what he was talking about this morning. He was asked how they would end their losses in Europe. He said GM would reduce capacity and that would create a push demand not the current pull demand. He has push and pull backwards. That just shows that as a financial man, the president of GM knows nothing about running a car company just like the others that came and went. He said they paid off the unions but did not say that the unions were gone. Government Motors now has them on the board of directors.

We would not support the Obama socialization of the car industry by buying socialized GM's products or stocks. Red China will bail them out anyway. Then they can sell cars to red China and help our balance of trade.

Let us hope that only leftist racist corrupt socialists join Communist China and take the bait and bale out US taxpayers. If ever there was a con-job… we just got it with GM and GE/MSNBC/Pravda endorsing it with Jim Cramer last night. Jim Cramer had a vision last week and told listeners to buy gold after it hit $1420 and was saying buy stocks at its recent high point. Now GE/Pravda supports nationalization as a means to bail out the socialist unions that bankrupt American businesses. The original stock and bondholders lost almost everything already and are out. The USA will still be the major stockholder with Red China close behind.

Today a leftist MSNBC Squawk Box white male guest said that only stupid, uneducated, blacks, and tea party supporters criticized the latest spending cut recommendations. Only the guest forgot that the democrat socialist leaders Pelosi and Reed had criticized the cuts first. It was meant to be a GE/Pravda slam on the tea party but it showed that the white leftists are indeed racists for lumping the blacks, and uneducated together with the Tea Party people they hate.

Leftist bankers believe shareholders owe them a living and taking the highest salaries and transferring wealth to their crooked rich George Soros type cronies with special deals that steal from shareholders and Americans. They stack their director boards with cronies who all pillage the companies. Obama has done nothing to claw back their theft. Even the former SEC chairmen were stealing high salaries and golden parachutes from US taxpayers. The Obama administration is the most corrupt in American history.

Capitalists get high salaries only when they grow their companies and employ more people. Leftist Obama socialist executives raid the corporate treasury as we have seen them do since 2007 when they endorsed Obama and as their profits went on the skids. Socialists steal from shareholders even when times are tough. Obama protection is why no socialists have gone to jail and they continue to steal even as the economy goes down.

Presidents Ronald Reagan and Bush Sr. put 1072 corrupt leftist bankers in jail during the last banking crisis. There has been much more bank corruption under corrupt leftist Charlie Rangel's Senate. Rangel himself is a leftist crook and was convicted yesterday on 11 counts of corruption in the US Senate. Racist leftist Rangel required that minorities of his and Obama's race not be asked about their ability to make their mortgage payments but many banks are now being sued for that stupid leftist racist practice. In the mean time leftist racist Obama has taken no criminal actions against leftist Rangel or the corrupt leftist bankers and corrupt racist leftist Freddie Mack administrator who lied and cheated investors in the mortgage derivatives fiasco. Obama has still not arrested the thousands of corrupt leftist banking and investment managers who created the derivative market meltdown in 2008 by giving mortgages to thousands of people of Obama's race who had no visible means of even supporting themselves. Leftist equals = racist favoritism = equals corruption.

The Obama administration is the most leftist, and corrupt administration in the history of America.

Obama has done nothing but make more regulations to throw more Americans out of work and make American banking less competitive. Zero Obama risk equals = zero American opportunity, which equals = zero Obama administration intelligence. Risk brings reward. Obama stupidity brings zero corruption avoidance, zero growth, and lingering unemployment. The banking crisis was not due to risk taking it was due to leftist racist affirmative action favoritism by corrupt Senators like Rangel and Obama, corrupt Freddie Mack, and corrupt leftist bankers.

Today the WSJ said Obama's FED will finally scrutinize the top 19 banks. But they should scrutinize the ones that failed first because that is where the most crooks will be found.


World Markets:

China is making additional attempts to control inflation bubbles. Asian markets stabilized today. China is seeing a bubble in food price inflation now as grain harvests are down and Russia barely has enough to feed their people. The USA will have a bumper crop of wheat and soy but China does not consume much wheat yet.

Nine Russian reporters were beaten to death so far this year. The latest had his head, hands and legs crushed with a baseball bat and has not regained consciousness. 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 not even aware of his severe brain damage and the prosecution now amounts to nothing less than persecution of his entire family. 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 for the crime of reporting the problem. 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 now because the USA rescued them from Hitler and Communism. The socialists including Obama are now working hard to make America a socialist state too.

The EURO has come under pressure now and the dollar will rebound while 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. In fact last month the core PPI dropped -0.6% (very deflationary). The main effect of QE2 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:
Economic Calendar
New York State reported manufacturing plunged as US inventory build-up accelerated to 1.2% this past month.

This week so far:
Retail Sales Oct up 1.2% vs. 0.6% last month. Good sign
Retail Sales ex-auto Oct up 0.4% vs. 0.5% last month. Bad sign for Christmas sales.
Empire Manufacturing Index Nov down -11.1 vs. up +15.7 last month. terrible, terrible sign
Business Inventories Sep up 0.9% after being up 0.6% last month. Very bad as inventory buildup is acceleration. This is on top of the Obama communists lied again and he shifted 0.3% from this month to last month. Otherwise inventories would have admitted to be up 1.2% this month.
Producer Price Index Oct at 0.4% same as last month
Core Producer PI Oct -0.6% vs. 0.1% last month. This is quite deflationary and is what the FED wants to raise to +0.2% per month.
Net long-term TIC Flows Sept jumped to $82Billion in Sept vs. $11Billion revised August levels showing increase in foreign investment in the USA. China is buying USA real estate. Not good
Industrial Production Oct at 0% vs. -0.2% last month. Not too good especially with inventories rising.
Capacity Utilization Oct at 74.8% up from 74.7% last month. Anemic Obama recovery
NAHB Market Housing Index Nov at 16. October was also at 16 also but Obama lied and dropped it to 15 to make it look like housing was recovering this past month. Obama has still not arrested the thousands of corrupt banking and investment managers who staged the derivatives meltdown in 2008.

Yesterday
MBA Mortgage Applications 11/12 dropped -14.4% vs. being up last month by +5.8%-very bad
CPI Oct up 0.2% improved slightly over being up 0.1% last month.
Core CPI Oct up 0% after being up 0% last month. No recovery in progress. The FED wants about *0.2% each month to avoid stagnation.
Housing Starts Oct were 519K down from 610K last month. -not good
Building Permits Oct were 550K up from 539K last month. OK
Crude Inventories 11/13 up 7.3M after being down 3M last month indicating oil prices are too high.

This week:
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 18, 2010

Market has topped.
The government motors GM hoopla is seen to be very positive to socialists around the world. Red China is poised to eventually be the biggest shareholder. Perhaps China will guarantee George Soros and others a great profit in a total buy-out at some later date. Obama socialists are clearly thrilled by how nationalization has worked out so far. The big unions were paid off and now American taxpayers may be soon paid back. It was recently disclosed that China has begun to take over the Italian clothing and fashion industry. They have sweat shops in Italy run and manned by Chinese communists just so they can say the clothes are actually made in Italy not China. They are driving the Italians out of business now. There are a lot of Obama socialists who would love to drive a little GM care with a bright red star on it.

Japanese style world deflation remains the primary concern with the USA core Producer Price Index at a deflationary -0.6% last month. That is why the FED is doing QE2 and so far it has not had much of an effect.

Congratulation GE/MSNBC/Pravda for keeping your financial recommendations as consistently moronic as your political views. Obama continues to kill American jobs in the energy (Gas, Oil, and Coal) sector to stifle any possible economic growth before it can get a foothold. Gulf oil, shale fracturing, and mining permits are virtually impossible to get now even for American companies investing in the USA. The Obama reds are restricting growth and employment. They need more crises to justify more communist takeovers like Italy is now seeing.

Stock market cash flow was out sharply last week. 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 naked short commodities even though they just peaked. 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 up last night after the recent plunge. China's market was up 0.9%, Hong Kong up 1.8%, India market up 0.3%, and Japan up 2%.

European markets are up this morning in a range of about 1.2% to +1.7% about half way through their day.

US pre-market futures were up about 0.9% to 1.2% at 8:00 AM EST.