Presidents Ronald Reagan and Bush Sr. put 1072 corrupt bankers in jail.

Presidents Ronald Reagan and Bush Sr. put 1072 corrupt bankers in jail.

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 Banking Commission. 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. Racist/leftist 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, ignorant, and corrupt administration in the history of America.

Obama's Nigerian Aunt is on USA welfare now and told the press she had a right to USA welfare because the USA prosperity was not earned but was a gift from her gods.

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 avoidance, zero growth, and lingering unemployment. The banking crisis was not due to risk taking it was due to racist affirmative action favoritism by corrupt Senators like Rangel and Obama, corrupt Freddie Mack, and corrupt leftist bankers.

World Markets:

Asian markets plunged again. China dropped -1.9% last night. 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 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.

Yesterday
Producer Price Index Oct at 0.4% same as last month
Core PPI 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.

This week:
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 17, 2010

Market has topped.
Silver and gold continued to decline, as Japanese style world deflation remains the primary concern with the USA core Producer Price Index at a deflationary -0.6% last month. China plunged -1.9% again last night. The FED policy will devalue the $trillion of American currency that China holds at a rate exceeding 2.5% a year and China will get even less if they try to sell their US treasuries. Then the US can buy them back at a discount. GE/MSNBC/Pravda/MadMoney Jim Cramer once again recommended Gold and Asian markets at their market tops Monday!

Congratulation MSNBC 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 even for American companies investing in the USA.

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 down last night after the recent plunge. China's market was down -1.9%, Hong Kong down -2%, India market closed, and Japan up 0.15%.

European markets are stabilizing this morning in a range of about -0.2% to +0.5% about half way through their day.

US pre-market futures were volatile and falling about -1.6% at 8:00 AM EST.