USA holds more Greek debt than any other nation. Philadelphia Fed President Charles Plosser says an exit from Obama’s inept Hugo Chávez socialist type stimulus measures should start “long before” a recovery in the U.S. jobs market is assured. Giving money to welfare never trickles up. It only trickles down into indolence and crime.
Fox news showed that the Obama business advisors like GE are still having the biggest layoffs and are moving the most jobs overseas. Obama cracks down on Boeing for wanting to move into North Carolina instead of Mexico or India because North Carolina does not force Americans to join union shops.
Gates said last month that reductions in the number of troops and their pay and benefits might be needed to avoid cutting welfare for lazy people and the drug culture. Options include dividing the National Guard and Reserves into a strategic reserve and an operational reserve with different pay, training and equipment, Gates said. Another possibility might be moving heavy or infantry brigades into the Guard.
Futures fell as the highest U.S. jobless rate this year fueled concern that the recovery in the world’s largest economy is faltering. The Organization of Petroleum Exporting Countries is unlikely to change targets when it meets June 8.
Greenspan prefers the Ryan Plan with no tax increase and all spending cuts but he is scared to death afraid of a default even of one or two days as the risk to the world economy that we do not want to see. This problem he says will last 10 years. He said the education of the next generation and their productivity is far lower than the generation of the cold war, which is retiring. He said the economy could not afford the current spending.
Obama has 20% of Americans unable to sell their homes to move to new jobs and is paying another 20% to do nothing. Basically Obama’s inept Hugo Chávez socialist type handling of the economy created the housing market fiasco has frozen 40% of the American labor force with roughly 20% of potential working Americans now living on government handouts. That is how socialists like it because, the able and all the seniors are then on government handouts where you don’t get anything unless you register with the socialist party and wave your little red flags when they march by. It does not take long before the socialists then get 90% to 99% of the vote and suspend the Constitution and declare their dictatorship for life. Then you know how long their banana republics and Moslem theocracies last… never much more than 50 years before the people are in abject poverty. Then they only exist longer by imprisoning and killing dissidents. The socialists need to continue the recession to destroy American freedoms so that is what Obama is doing. Obama is intentionally ignoring the collapse in housing prices. Obama is intentionally destroying the middle class by taking away deductions and other incentives to get a job and own a house! Instead he gives housing stipends and food stamps so people can get great rental and abandoned housing and food stamps for people on welfare to use to buy steaks or cash at casinos while over 20% of the work force have lost all their money in their house and are now underwater and another 20% have nothing at all.
World Markets:
Israel's defense minister says the regime of Syrian President Bashar Assad is doomed.
Coelho, Portugal’s incoming socialist Social Democratic prime minister, said he would forge a majority coalition to ensure the austerity measures mandated by a 78 billion-euro ($114 billion) bailout stay on track. He unseated Socialist Jose Socrates, and the third-place communist People’s Party, won a combined 129 seats in the 230- member parliament with all but four seats decided, according to official results. That is 14 seats more than the communist party. That means the communists need only 10% more seats to throw out the two socialist parties and establish a communist state that traditionally ignores debts to free nations.
US Economic Highlights
Past Week Initial
Initial Claims 05/28 422K 400K were flat 424K
Continuing Claims 05/21 3711K rose from 3690K after Obama fudge removed
Productivity-Rev. Q1 1.8% up slightly from 1.6%
Unit Labor Costs-Rev. Q1 increased 0.7%
Factory Orders Apr dropped sharply 4.6% to -1.2% from 3.4% last month. This is the biggest decline in over a decade.
Crude Inventories 05/28 2878K rose sharply from 616K
Nonfarm Payrolls May fell to from 244K last week.
Nonfarm Private Payrolls May fell to 83K from 268K last week.
Unemployment Rate May increased to 9.1from 9.0% last week.
Jun 7 3:00 PM Consumer Credit Apr
Jun 8 7:00 AM MBA Mortgage Index 06/04
Jun 8 10:30 AM Crude Inventories 06/03
Jun 8 2:00 PM Fed's Beige Book Jun
Jun 9 8:30 AM Initial Claims 06/04
Jun 9 8:30 AM Continuing Claims 05/28
Jun 9 8:30 AM Trade Balance Apr
Jun 9 10:00 AM Wholesale Inventories Apr
Jun 10 8:30 AM Export Prices ex-ag. May -
Jun 10 8:30 AM Import Prices ex-oil May
Jun 10 2:00 PM Treasury Budget May
Market Outlook June 6, 2011
We are off QE2 and entering the summer period when people sell out and go on a vacation. The US economy continues to tank because, “the problem is defaulting mortgages stupid,” and Obama still does not get it! We need to get construction going again.
IPO’s of social websites like Facebook are at their most frenzied levels since the DOT.COM bubble burst in 2000. Leftist congressman Arnold Weiner does not deny a photo of his wiener was sent it to a 21-yr. old co-ed and a few hundred other girls. He is married to a beautiful devout Moslem. He is also clearly unbalanced and needs help.
U.S. stocks were flat yesterday but in a precarious situation realizing adjusting payment schedules will not avoid EU government defaults.
On a cash flow (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 now as well. The stock market collapsed back to the support line in just 6 hours yesterday!
.http://finance.yahoo.com/q/ta?s=^NYA&t=6m&l=on&z=m&q=l&p=m20%2Ce50%2Ce100&a=m26-12-9&c=
The VIX says investors are still very complacent but might be starting to panic. That correlates more with a sharp decline about to happen
http://finance.yahoo.com/q/bc?s=%5EVIX&t=1y&l=on&z=m&q=l&c=
World trade recovery is a political myth. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Click on the 3yr chart and see full effect of the slowdown. This was Cramer/Lenin/Pravda’s main chart for following China’s growth until it showed stagnation instead. Obama is killing the world economy.
Asian markets were down again last night. China NC%, Hong Kong NC%, India up 0.2%, and Japan down –1.2%.
European markets are down this morning in a range of about –0.1% to-0.8% half way through their day.
US pre-market futures are flat again today at about -0.3% at 7:30AM EST after dropping slightly yesterday after the opening.
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