GE/MSNBC/Pravda is nauseating to listen to. Cash could be king again! Walking dead men.

GE/MSNBC/Pravda is nauseating to listen to. Cash could be king again! Walking dead men.

GE does not take responsibility for the fact that they built nuclear facilities and then fired or let go all the people they once had who were competent and responsible for nuclear safety. The socialist GE/Pravda idiots now say this is a lesson learned for them! They obviously are brainless if they think such socialist rhetoric is not going to bite them good. They built a facility on a tectonic fault line next to the ocean and now their current socialist employees say they did not consider that an earthquake could knock out their cooling system and did not know that Japan has Tsunamis that strike that coastline and could actually kill all the facility employees. Most of the employees at that GE facility are probably already walking dead men. All the people at the facility could have been killed in the first hour and they had no automatic safe rapid shutdown capability for any GE nuclear facility. A nuclear fire is so explosively hot that even steel, sand, and dirt are vaporized and carried high into the atmosphere where it cools and falls back to the earth where any particles that get into the skin, the lungs or the blood can cause cancer. The land that becomes contaminated may be unusable for 1000 years or more unless the radioactive deposits are excavated and buried somewhere. This is a disaster anyone but an incompetently run socialist organization would find unforgivable. If a capitalist firm had done what GE did, all the socialists would be outside chanting and waving red flags right now. That is how we know GE should be banned from American defense industry contracts. They are as dangerous to America as they would be with Castro or Ortega as GE's chief executive.

It is evident that socialist GE did not train the Japanese properly because the green people at GE hate the nuclear industry and they hate American free enterprise. And now the GE idiots are telling us the Japanese disaster is going to be a boon to the world economy. That is right, GE/MSNBC/Pravda says it is profitable to destroy Japan's economy because then they will have to rebuild and that will help the USA and other countries that supply Japan. But who in the world would be insane enough to buy anything from a country where socialist corporations such as GE that hate everything America stands for are building things that self-destruct. GE should be put on a list of socialist run companies that cannot be trusted for safety or security. They should not be allowed to provide anything for the American defense or infrastructure.

World Markets this week:
Asian stocks fell, leading a regional benchmark index lower for the third time this week, on renewed concern that a worsening nuclear crisis in Japan may cripple the world’s third-largest economy.
Oil fell from a two-day high in New York as concern that damage from Japan’s earthquake will curb demand for crude outweighed speculation unrest in the Middle East may lead to supply disruptions. A silver and gold plunge as the specter of the worldwide economic relapse worries investors who now seek a haven in liquid currencies. Depressions are bad for precious metals and this is no time to have them. Australia’s currency and stocks sank on concern an earthquake-triggered nuclear catastrophe in Japan, its second-largest trading partner, will slow the economy and prompt an interest-rate cut.

China is still a bright spot. Their leaders are again openly talking about political reforms.

US Economy
Home construction in US slumps, and producer prices rise and become a recovery hurdle
http://www.youtube.com/watch?v=ELDHaeEsNF0

Empire Manufacturing Mar 17.5 improved from 15.43
Export Prices ex-ag. Feb rose 0.9% the same as last month 0.9%, or a 10% inflation rate
Import Prices ex-oil Feb 0.3% not as bad as last months 0.8%
Net long-term TIC Flows Jan $51.5 poorer than last month's $65.9B
NAHB Housing Market Index Mar 17 hardly improving from last month's 16
FOMC Rate Decision Mar 0.25% not changed and not helping. Raising the rate would stimulate investing in jobs instead of keeping money under corporate mattresses.

Yesterday:
MBA Mortgage Index 03/11 -0.7 falling dramatically from +15.5%
Housing Starts Feb 479K down substantially from 596K
Building Permits Feb 517K down substantially from 562K
Producer Price Index Feb 1.6% up sharply from 0.8%, or 15% energy inflation
Core PPI Feb 0.2% down from 0.5% exactly what the FED wants.
Current Account Balance Q4 -$113.3B deficit contracted slightly from -$123.2B
Crude Inventories 03/12 1.745M down slightly from 2.52M

This week:
Mar 17 8:30 AM Initial Claims 03/12
Mar 17 8:30 AM Continuing Claims 03/05
Mar 17 8:30 AM CPI Feb
Mar 17 8:30 AM Core CPI Feb
Mar 17 9:15 AM Industrial Production Feb
Mar 17 9:15 AM Capacity Utilization Feb
Mar 17 10:00 AM Leading Indicators Feb
Mar 17 10:00 AM Philadelphia Fed Mar

Market Outlook March 17, 2011

Housing is the biggest Obama disaster area and will hurt the economy far more than unemployment.

The market selloff accelerated as volume surged 33% from when share prices were rising. Still no bounce yet as the plunge continues in all securities markets. We are seeing funds unloading stocks on people who listen to GE/MSNBC/Pravda advice.

We think the next stock market support level will be down at Nov 4, 2010 levels about another 8% lower. But actually the real support starts about 15% lower than yesterdays close. All of this year's gains are now gone.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#chart2:symbo yel=^nya;range=1y;indicator=ema(50,20)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

World Markets
The phenomena of this decline in all world equities and precious metals is because all markets are about 35% overvalued right now because all have more than doubled since their lows and based on the low level of international trade as seen by the dry shipments… the world economy's have only revived about 25%. You might then think the drop should really be about 70% if it is up 100% and the economy is only up 25%. But no… the initial low in equities was also too low compared to the economic impact of the financial crisis. It was an overshoot in a downward correction. Look at the last five years of world trade and the last year and you can see the world has not recovered the way Obama and GE/MSNBC/Pravda socialists are telling Americans.

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

So what we are seeing now is called a redistribution of stocks from the strongest and smartest investors to the greediest and most foolish investors. This happens at every market high and the symptoms are that the smart investors sell early and sharply but then stop abruptly so that the foolish will think there are bargains and drive the market back up reducing the daily loss. The smart investors sell day after day in that manner until all the greedy foolish investors have exhausted all their cash and margin. At that point the foolish are vulnerable because they are on or close to their margin limits and have borrowed half of what they have invested. At this point the smart investors know the game is over and they sell out 90% and the market plummets forcing all the foolish investors who are on margin virtually out of the market forever. They are burned so badly that most cannot even recall how bad their experience was because it is blocked out within their subconscious and they will never invest again until in twenty years later when they have totally forgotten. Then these same fools will be attracted back into the market by their ignorance and greed and they will buy gold and other "secure safe-havens" at their peak again and then lose 75% of the retirement savings.

The world is now headed toward a fiscal crisis where cash will be king. It will be much worse than the secular financial crisis triggered by Dodd and Barney Frank by them giving away America's wealth in the form of thousands of beautiful houses to people who were on welfare or close to it. We even saw California even give a welfare woman who had two children… free fertility treatments and she had six more children for a total of eight Moslem welfare children on California welfare. She collects $1500/ month for each one for about $150,000 income doing nothing but raising eight Moslems in California. That is how foolish California's socialist politicians are and why we need to keep America's wealth out of the hands of government officials who are often the unemployable dregs of the private economy. Government jobs are designed for people who are unemployable in the private sector. More QE2s will only inflate the fiscal crisis and Japan is going to do QE2s in a big way. When it occurs, gold and silver will be virtually worthless and shunned by governments. Much, perhaps 95% of the world credit is just invisible plastic credit… not cash. When credit crashes during the coming fiscal crisis 95% of the purchasing power will then disappear overnight because we printed so little of it since WWII. Cash will then be king!

Cash will be king until enough is printed because no one will accept your credit card when the credit crash occurs. All the plastic credit will be worthless. Banks could take weeks to clear checks because people will have so little cash!

Asian markets were down again last night. China down -1.1%, Hong Kong down -1.8%, India down -1.1 %, and Japan down -1.5%,

European markets are up this morning in a range of about 1% to 1.9% half way through their day.

US pre-market futures are up 0.9% to 1.2% at 9:00 AM EST.

The rallies are the opportunities for the wise to sell to the foolish. When we run out of fools, the market drops seriously as many people lose everything and their accounts are closed. Free markets punish the foolish. So be prepared to buy when the panic subsides.