President promises Democrats will stall health care reform by reading the bill this time. The last time Democrats ram-rodded down America's throat

President promises Democrats will stall health care reform by reading the bill this time. The last time Democrats ram-rodded it down America's throat with no democrats reading the bill. Remember when Pelosi said they could read it after it is passed and find out then what is in the bill? Will they also discuss the heath care section on a domestic guard for the president modeled after Fidel Castro's and Chavez's?

Investors are trading cautiously as the Federal Reserve's policy committee kicked off a two-day meeting.

A rush of fourth-quarter earnings reports from Dow components and data showing declining home prices (down 30% nationwide) weighed on the market. The underlying theme is that there are problems bubbling below the surface from an economic standpoint and those problems simply can't be ignored. As the market has climbed, companies have faced mounting pressure to cook the books in order to impress investors.

 3M's fourth-quarter profit fell 0.7% as margins declined.
 Bank of America was also weak after CNBC reported the bank has stopped issuing initial foreclosure notices to homeowners in states that don't require a judge to sign off on foreclosures. The U.S. SEC Commission also charged Merrill Lynch, now owned by Bank of America, with securities fraud for misusing customer order information. Merrill agreed to pay a $10 million penalty.
 Health-care giant Johnson & Johnson reported a 12% decline in fourth-quarter earnings and fell short of Wall Street expectations as the company grapples with product recalls and a slowdown in health-care markets.
 Travelers' fourth-quarter profit fell 30%.
 Verizon Communications added fewer smartphone customers in the fourth quarter and missed analysts' expectations.

The dollar strengthens and gold falls in price as the world discovers the best inflation adjusted returns are found in the USA. The Net long-term TIC Flows for November show a sharp trend reversal as the world buys US dollars and treasuries for a safe higher rate of return like the USA banks have enjoyed at 0.25% cost for the last two years.
With a 0.25% cost and a guaranteed 1.88% return banks make money. While investors are forcing European governments from Greece to Ireland to cut spending as governments prepare to sell $1.1 trillion of bonds this year, demand at Treasury auctions has been the highest on record. The precious metals trend line is now down steeply


World Markets:
The Islamic terrorist group Hezbollah is likely to become the next Lebanese government and exterminate Christians and Jews.

Islamists kill again at Moscow's busiest airport.

Chancellor Angela Merkel’s coalition rejected an appeal by the European Union’s top economic official, Rehn, to back more crisis-fighting measures, underlining the risks to EU efforts to calm the euro-area debt turmoil. The precious metals trend line is now down steeply

Britain’s economy unexpectedly shrank the most in more than a year in the fourth quarter as gross domestic product fell 0.5 percent after increasing 0.7 percent in the previous quarter, the Office for National Statistics said in London today.

The USA lost over $300 Billion in trade with China and that is not counting the theft of our technology. Even Apple Corp profits all go to Chinese workers and hurt America's balance of payments.

Chinese have massive illegalities and sucker sales like Hutchison Whampoa Ltd.’s sale. The Asian criminals are essentially selling their Brooklyn Bridge. Red China engages in practices that are illegal in the Free World. China is creating monopolies and cornering the market in Rare Earth's the way criminal organizations did a century ago. China thus is causing shortages and driving up prices all around the world and they are causing unemployment in manufacturing nations in the Asian ring. Remember they illegally imprisoned two Americans for doing diligent economic research for fear the Americans would expose Red China's economic corruption. Their Nobel Peace Prizewinner was thrown in jail because he accepted the peace prize. China should free the two Americans and let their Nobel Prize winner leave China.

Business trends

Friday
Crude Inventories 01/15 Jumped over 2M after declining by similar amounts in past weeks. Red China is behind the higher commodity prices around the world, not because they are doing well but because they bought up much of the world's natural resources in every continent and are raising prices to squeeze the free world.

This week:
 Case-Shiller 20-city Index Nov The Standard & Poor's/Case-Shiller composite index of 20 metropolitan areas declined 0.5 percent in November from October on a seasonally adjusted basis. The closely watched survey showed Single-family home prices fell for a fifth straight month in November and could plumb new lows soon. "A double-dip could be confirmed before Spring," said David Blitzer, chairman of the index committee at S&P. Blitzer defined a double-dip as both the 10 and 20-city composite indices setting new post-peak lows.
 Consumer Confidence Jan rose to 60.6 from 53.3 in December
 FHFA Housing Price Index Nov showed no improvement after improving 0.7% last month

Today
Jan 26 7:00 AM MBA Mortgage Purchase Index 01/21
Jan 26 10:00 AM New Home Sales Dec
Jan 26 10:30 AM Crude Inventories 01/22
Jan 26 2:15 PM FOMC Rate Decision Jan

Jan 27 8:30 AM Initial Claims 01/22
Jan 27 8:30 AM Continuing Claims 01/22
Jan 27 8:30 AM Durable Orders Dec
Jan 27 8:30 AM Durable Orders ex Transportation Dec
Jan 27 10:00 AM Pending Home Sales Nov
Jan 28 8:30 AM GDP-Adv. Q4
Jan 28 8:30 AM Chain Deflator-Adv. Q4
Jan 28 8:30 AM Employment Cost Index Q4
Jan 28 9:55 AM Michigan Sentiment - Final Jan


Market Outlook Jan 26, 2011

GE socialists/ MSNBC/Pravda CEO is now Obama's chief economic advisor. The business community calls it socialism with capitalist cronies the way National Socialists like to do it as opposed to international Communism the way Obama's staff liked it last year. American hedge funds first shorted private education corporations last year and then they went to Obama and slammed the corporations and had Obama load the firms up with new regulations. The hedge funds then made a killing as Obama's regulators drove the education companies into the ground. That is Obama's education policy. It is pure criminal Nationalist Socialist style hedge fund crony capitalism. Individual investors beware.

Market manipulators still control the American stock market. This is not an environment for individual investors.

Currently American hedge funds remain at historic levels of optimism while the economy continues to slow from the 2.5% rate Obama reported last year and then continued to revise downward. Most are already fully invested. Short Selling Against S&P 500 Companies is at a one-year low, lower than before the May Flash Crash. American technology stocks are overpriced because General Electric socialists/ MSNBC/Pravda are selling out other American companies by giving away American technology to curry favor with the communists of China.

Rep. Paul Ryan and House Republicans embark today on an effort to significantly slash federal spending, including one prominent congressman promising to engineer 'the largest series of spending cuts in the history of Congress.'
By mid year we expect state and federal worker layoffs because the socialists have not put their government houses in order and the Tea Party wants smaller government. Raising taxes would allow states go even deeper in the hole with union contracts and tip into default. Many predict a major sell off at mid year when several individual states also are in budget crisis. But typically the stock market is six months ahead of economy. QE2 ends mid year but that is likely to be extended.

World Markets
Asian markets were mixed last night. China's market was up, 1.2%, Hong Kong up 0.2%, India closed, and Japan down 0.6%,

European markets are up this morning in a range of about 0.1% to 1.2% half way through their day.

US pre-market futures are flat about 0.4 % at 7:00 AM EST.