Obama and Bernanke lied to the American people when they said running up a USA deficit would prevent the Japanese problem of two decades of economic s

Obama and Bernanke lied to the American people when they said running up a USA deficit would prevent the Japanese problem of two decades of economic stagnation.

ETFs (specially 2X and 3X types), both long and short appear to be rigged or manipulated at this time. It is hard to hazard who is doing it, but they bear no resemblance to their underlying stocks. Ultimately one would expect that every time the long side returned to an original level the short side would also. But what it looks like is that funds are siphoned off when an ETF is low and it never gets to its old high when it later recovers. They warn not to hold them for any length of time but is it legal to drain off the cash that way? When the next market panic occurs people may never recover their investment by holding them. What they do is a reverse split to raise the price but you have half the stock. Then some people are fooled and don't realize they are continuously siphoning off value. Then suddenly people get out to stop the hemorrhaging and sell then at a loss to avoid a total loss. Mad Money must have been burned too because they commented on this problem three years ago when Jim Cramer's Natural Gas ETF recommendation gradually flowed down the sewer. He then warned to stay away from ETFs but did not explain why.

Friday, Alan Greenspan said this recession will not end until home prices rise 10%. He said conventional conforming home loans since 2005 are now all under water. He said the world economic system is now very bleak and impossible to forecast. We will not know if QE2 worked until after recovery and we see if it creates any inflation. He said the price of gold is an indication of concern about the economy and is not rising due to inflation but form fear. He said FED activism is now declining. He said the2500 page Dodd-Frank bill is internally contradictory bill of regulations that will hamper expansion of the economy and has had to be suspended recently for Ford Motors to get any financing. It is just the tip of the ice-burg and needs to be reversed. It is worse than Obamacare. He said the recent equities rise is due to balance sheet changes from easy QE2 money and those effects are now running out and real growth is needed. QE2 enhanced capital gains and margins in the short term for stocks. New real growth is now needed from the liquid cash being converted into illiquid assets but that is not possible to forecast. Instead the cash is being used to buy out competitors in a shrinking economy.

How to balance the USA budget:
1. Throw out every single Democrat-socialist politician: Federal, State, and Locally.
2. NASA should be cut sharply so they learn to get out of socialist politics and go back to real science. NASA is now the socialist junk science poster child of our be-happy schools were 40% of the Obama be-happy kids drop out and a work ethic and personal character are considered passe dinosaurs like Jefferson, Madison and Lincoln. Today Lincoln gets one paragraph in American history and Clinton gets two pages just for his gay rights.
3. State, city, teachers, and security/safety workers should not be allowed to have unions just as they did not have unions until the beatnik drug era of the late 1960's. The USA had an excellent school system before 1970 and had no immigration problem from be-happy banana republics until the 1960-70 drug culture took over US education.
4. Lay off 20% of state and federal workers this year and another 20% next year.
5. Break up Goldman Sucks and AIG and return the cash to the American treasury that bailed them out.
6. Withdraw Obama care legislation and stop FED quantitative expansion (printing money to buy our own debt).
7. Send all the ignorant/criminal be-happy illegal immigrants' back to their socialist banana republic drug cartels where they come from. They don't want to work, they want to sell Mexican drugs and take over Texas. Thousands come to Texas every year just to have their children born in America so they can claim the child as an American citizen and appeal to the lunatic democrat-socialists for their own citizenship plus grants so they can pretend to study but actually drop out and get into the US welfare system. They come to America to go on welfare and sell drugs not to help America. The derelicts have already destroyed Mexico and Haiti that way.
8. Make it illegal for corporate officers and employee unions to influence their salary decisions other that through proven economic performance for the taxpayers and other investors. No more free stock for them.
9. Since the Federal Energy department and the Education department were created the Federal Commissars have destroyed Energy and Education. Eliminate these two federal bureaucracies.
10. Fire all the Obama Czars and FED commissars and government employees involved in housing, Freddie, and Fannie.

World Markets this week:
China is beginning to see the difference in the way "free peoples" trade and communists trade. They never before saw so many people bringing them aircraft and other high technology that is so reliable compared to the junk the Russians and their old Chinese manufacturers produced. And China sees they can easily enter the New World. The Chinese government needs to begin a step by step plan to set up a system of free elections for a Constitutional government which protects the individual's right to the fruits of the individual's labor.

This now is the opportunity for NATO to remove the Libyan psychopath from power. But he will likely destroy and set ablaze all the oil fields the way Saddam Hussein did when he was driven out of Kuwait.

Energy is now the highest tax on the World economy as it has been for years in socialist countries who use energy policy as political power just as Obama does by punishing Americans in the southern energy rich states for voting against his policies of socialism, racism (against people with a work ethic), and stupidity. Obama is punishing Americans in the southern states for their rejection of his socialism and his welfare policies.

Japans FED spokesman Masaali Shirakawa said, "The so-called credit easing (QE2) adopted by the Federal Reserve is essentially the same thing we (Japan) did." That means Obama and Bernanke lied to the American people when they said running up a USA deficit would prevent the Japan problem of two lost decades of stagnation. They are creating exactly the same stagnation problem Japan created. Japan now owes more than 80% of their GDP. Obama and Bernanke lied to the American people and said we can spend our way out of the recession but Masaali Shirakawa said that is what Japan is still doing after more than 20 years of profligate socialist spending just like Greece and Ireland. This is why we need to throw the lying corrupt socialists out. Obama's administration is stupid, incompetent or both.

US Economy
Jack Welch said the Wisconsin Democrats who fled their state are clueless and irresponsible (those were his words).

Mar 7 3:00 PM Consumer Credit Jan declined sharply from 6.1B to 5B this month even after 2B was moved forward from last month in an Obama "adjustment."


This week
Mar 9 7:00 AM MBA Mortgage Index
Mar 9 10:00 AM Wholesale Inventories Jan
Mar 9 10:30 AM Crude Inventories 03/05
Mar 10 8:30 AM Initial Claims 03/05
Mar 10 8:30 AM Continuing Claims 02/26
Mar 10 8:30 AM Trade Balance Jan
Mar 10 2:00 PM Treasury Budget Feb
Mar 11 8:30 AM Retail Sales Feb
Mar 11 8:30 AM Retail Sales ex-auto Feb
Mar 11 9:55 AM Mich. Sentiment Mar -
Mar 11 10:00 AM Business Inventories Jan

Market Outlook March 8, 2011
Last night MSNBC/Pravda's Jim Cramer warned that a significant decline is now likely. He said late buying in the day is now a mistake and we will likely see less of it.

Net cash flow is out of the market. The market broke through the first 20-dma resistance line but we need to watch for follow through with the 50-dma for a full correction. It took a first bounce of support last week as we expected before the decline hits a possible -16% total. The real problem is profligate socialist spending here and abroad. In America the current budget crisis will only grow until the city and state fiscal budget cuts are approved this summer. We think the next support level will be down to Nov 4 levels.

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

We are prepared to buy individual stocks on significant declines. Some stocks are already buying opportunities and worth taking.

World Markets
Asian markets were up last night. China up 0.1%, Hong Kong up 1.7%, India up 1.2 %, and Japan up 0.2%,

European markets are mixed this morning in a range of about -0.2% to +0.4% half way through their day.

US pre-market futures are up 0.3% at 7:00 AM EST.