For the first time since the Great Depression, government payoffs to socialists in America exceed tax receipts.

Stock markets in Asia and Europe plunged today as Obama visited Ireland the week after the Queen of England. For the first time since the Great Depression, government payoffs to socialists in America exceed tax receipts. All this week, the FOX Business Network will explore the idea that Obama has made America a nation of takers, instead of makers. Obama socialist media staged demonstrations against American Special Forces in Afghanistan because the Taliban is loosing. Obama’s supporters set up the cameras and had the Taliban supporters’ march directly at the camera's making a dramatic news clip. It was obviously staged and shown last Wednesday and Thursday. Obama also called for the destruction of Israel last week by demanding their return to the indefensible borders of 1967. If he chose 1944 instead he could not have been any clearer about his hate for Israel. Most leftists hate Israel now, but remember the Leftist National Socialists in Europe (NAZI) in 1939 were on the rise and no different than Socialist dictators in Venezuela, Cuba, Libya, Syria, Iran, or Rwanda today.

World Markets:
Asian and European appear to be plunging the start of this week.

Spanish Socialist party had its worst electoral setback in more than 30 years, prompting a shift in regional governments that risks reviving concern over public finances.

The depreciation of the EURO shows investors are downgrading their estimates of global economic growth. The Fed is scheduled to stop purchasing Treasuries in June, reducing its injections of money into the world financial systems. Japan already entered a new recession due to the earthquake in the first quarter and Europe’s debt crisis is deepening. A drop this month wiped out all the gains since mid-March in the Standard & Poor’s GSCI Index of 24 commodities and sent the MSCI World Index of stocks down 3.37 percent after dividends.


US Economic Highlights
Past Week
NY Manufacturing activity in May plunged to 11.9 from 21.7 last month. Terrible
Housing Starts in Apr fell to 523K from 549K last month.
Building Permits in Apr fell to 551K from 594K last month.
Industrial Production stopped growing in Apr after increasing 0.8% last month.
Capacity Utilization Apr fell 76.9% from 77.4% last month.
FOMC Minutes May indicate QE2 is being phased out.
Existing Home Sales Apr 5.05M down from 5.09M last month. Bad
The Philadelphia Federal Reserve Bank said its business activity index slumped to 3.9 from 18.5 in April. It was the index's lowest level since October 2010.
Leading Indicators Apr -0.3% down from 0.4% last month. Terrible! Two quarters of that would be the definition of another recession.

This week
May 24 10:00 AM New Home Sales Apr
May 25 7:00 AM MBA Mortgage Index 05/20
May 25 8:30 AM Durable Orders Apr
May 25 8:30 AM Durable Orders -ex Transportation Apr
May 25 10:00 AM FHFA Housing Price Index Mar
May 25 10:30 AM Crude Inventories 05/21
May 26 8:30 AM GDP - Second Estimate Q1
May 26 8:30 AM GDP Deflator - Second Estimate Q1
May 26 8:30 AM Initial Claims 05/21
May 26 8:30 AM Continuing Claims 05/14
May 27 8:30 AM Personal Income Apr
May 27 8:30 AM Personal Spending Apr
May 27 8:30 AM PCE Prices - Core Apr
May 27 9:55 AM Michigan Sentiment - Final May
May 27 10:00 AM Pending Home Sales Mar


Market Outlook May 23, 2011
The stock market has now broken the lower resistance line and did not bounce above it on Thursday and fell Friday. With QE2 ending there is less chance of a bounce. On a cashflow (not price basis) there was no new high after the last breakdown and thus a head and shoulders sell signal formed already in “Cash Flow” and is becoming apparent in price action as well. That is why we are not in the market at this time. This week is critical if the market is headed lower as downward capitulation is more probable at the 50 DMA line that will become the new upper limit of the trend line.
http://finance.yahoo.com/q/ta?s=%5ENYA&t=6m&l=on&z=m&q=l&p=m20%2Ce50&a=m26-12-9&c=


World recovery is still a political myth. See:

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Click on the 3yr chart and see the low flat-line forming. This was GE/MSNBC/Pravda’s main chart for following China’s growth until it showed stagnation instead.

Asian markets were down sharply last night. China down –2.9%, Hong Kong down –2.1%, India down –1.8%, Jakarta down –2.5%, Seoul down –2.6%, and Japan down –1.5%.

European markets are down sharply this morning in a range of about -1.2% to -1.8% half way through their day.

US pre-market futures are down sharply today at about –0.9% at 7AM EST.