Here are two of the main reasons for American deficits and Obama is doing nothing about it.

Here are two of the main reasons for American deficits and Obama is doing nothing about it. If American health care is so bad why don’t the people stay in their own countries. Do you know one American who pays to have treatment in Britain, Germany, France, Japan or China? We don’t. Yet we get people from all those countries coming for operations in the USA. But they at least pay.

http://www.youtube.com/watch?v=bLJxmJZXgNI

http://www.youtube.com/watch?v=U_ZnX9JRo5M&feature=related


Suddenly Obama who did nothing during the BP oil leak is claiming he masterminded the execution of Osama from the day he took office. Last week he had his wife give up her work on obese children and concentrate on soldiers wives to get her in on the favorable military publicity too. But behind the scenes Obama is cutting about 24000 soldiers off the payroll every month and unemployment (real) is now over 16%.


World Markets:
Greek bond yields and the cost of insuring the country’s debt against default rose to all-time highs amid speculation about a debt write-off or an extension of repayment timelines. Standard & Poor’s cut Greece’s long-term sovereign credit rating by two levels yesterday to B, five notches below investment grade. S&P said the rating may be lowered further.

European debt and Italian garbage crises still the news this week.

Oil plunged a record more than 8 percent on Thursday, the third record daily drop in a row in dollar terms, as concerns about economic growth and monetary tightening spurred a sell-off in commodities, gold and silver.
U.S. crude tumbled below $100 a barrel in heavy trading volume after weak economic data from Europe and the United States fed concerns that have battered commodities all week.

German industrial orders fell unexpectedly in March.


US Economic Highlights
Microsoft Corp. is in talks to buy Skype Technologies SA to gain the world’s most popular international calling service and its 663 million customers, according to two people. A price tag of %8Billion sounds high for what today is essentially a free service.

The average American home value declined 8.2% last year. The total decline now exceeds 30%.

Just as the FED QE2 temporarily inflated the bottom line by giving cash (which eventually must be paid back) the halt of QE2 will have the opposite effect and then the pay back will cause earnings to drop.
End of week summary
May 2 Auto Sales May Once again the auto and truck sales news was delayed since it is so bad.
Initial claims 04/30 474K up sharply from 429K last week even after 2K manipulation
Continuing Claims 04/23 3733K up sharply from 3641K even after 18K manipulation
Productivity-Prel Q1 down to 1.6% from 2.6%
Unit Labor Costs Q1 up sharply 1.0% after being stable or a non inflationary -0.6%
Nonfarm Payrolls Apr were up slightly to 244K from 216K. About 400K is needed for recovery to take hold.
Nonfarm Private Payrolls Apr 268K implying that soldiers are returning and are not getting jobs because the private went up but the government went down and Obama is only laying off soldiers as the military cutback continues.
Unemployment Rate Apr increased 9.0% as military draw down continues at 24K per month.
Hourly Earnings Apr increased 0.3% vs 0.0% before Obama manipulation moving the inflation backwards after first reporting.
Consumer Credit Mar shrunk 15% to $6.0B from $7.6B and that should show up as lower sales.

Today
May 10 8:30 AM Export Prices ex-ag. Apr
May 10 8:30 AM Import Prices ex-oil Apr

This week
May 10 10:00 AM Wholesale Inventories Mar
May 11 7:00 AM MBA Mortgage Index 05/06
May 11 8:30 AM Trade Balance Mar
May 11 10:30 AM Crude Inventories 05/07
May 11 2:00 PM Treasury Budget Apr
May 12 8:30 AM Initial Claims 05/07
May 12 8:30 AM Continuing Claims 04/30
May 12 8:30 AM PPI Apr
May 12 8:30 AM Core PPI Apr - 0.1% 0.2% 0.3% -
May 12 8:30 AM Retail Sales Apr
May 12 8:30 AM Retail Sales ex-auto Apr
May 12 10:00 AM Business Inventories Mar
May 13 8:30 AM CPI Apr
May 13 8:30 AM Core CPI Apr
May 13 9:55 AM Mich Sentiment May

Market Outlook May 10, 2011
Volume was extremely low yesterday and the NYSE website was not fully working. There must be NYSE technical issues.

The stock market is again testing the lower resistance line. With QE2 ending there is less chance of a bounce. On a cashflow (not price basis) there was now new high after the last breakdown. That is why we are not in at this time.
http://finance.yahoo.com/q/ta?s=%5ENYA&t=6m&l=on&z=m&q=l&p=m20%2Ce50&a=m26-12-9&c=

The American economy is still stagnant because Obama refuses to cut welfare that is an enormous economic inefficiency. Toothless immigrant welfare recipients are seen regularly at gambling casinos cashing welfare checks and illegally exchanging food stamps for cash. American welfare corruption has more than doubled under Obama. Obama gave over $30Billion to black constituents who fraudulently claimed they were owed reparations because their ancestors did not get all the corrupt handouts they were “entitled” to under previous administrations. This Obama corruption of the farm bureau alone is justification for firing that entire government office.

The depressed real estate market is killing the American economy.

World Markets
International trade shows that the world economy has still only revived about 25% not the 70% shown by the stock and commodities markets. QE2 is created the current stock market and commodity bubble. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate quickly. See:

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Click on the 3yr chart.

Asian markets were up last night. China up 0.6%, Jakarta up 0.4%, India down -0.2%, Japan up 0.3% and Seoul down closed.

European markets are up this morning in a range of about 0.5% to 1.3% half way through their day.

US pre-market futures are up today in a range of about 0.3% to 0.4 % at 6:30 AM EST.