Obama and his administration are a complete fraud. They lie and say they paid off the socialist bailout experiment when they actually almost tripled

U.S. companies hired far fewer workers than expected in May and output in the manufacturing sector slowed to its lowest level since 2009, as people are trapped in their homes and cannot move to where there are jobs.

Obama has 20% of America unable to sell their homes to move to new jobs and is paying another 20% to do nothing. Basically his inept handling of 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 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 ignoring the collapse in housing prices.

It’s the housing market that Obama is intentionally destroying 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.

Obama thinks the traitor Jane Fonda is a role model for America. She makes Obama look good. That explains why he is cutting military salaries and benefits and why he wants to honor an American hater who advocated North Vietnamese Communism over the freedom we supported in the south. It was like what abandoning S. Korea would be today. It is because Obama hates what America stands for, a land where everyone has an opportunity to work and achieve their goals in life. His followers don’t want to work or achieve anything. They just want a free pass and equality in income and housing plus freedom not to work, but from work.

Economists slashed their forecasts for Friday's closely watched U.S. payrolls report after private-sector job growth tumbled to just 38,000, its lowest level in eight months.

Losses in U.S. stocks and the value of the dollar accelerated after the Institute for Supply Management (ISM) said its index of national factory activity fell to 53.5 in May from 60.4 the month before.
New orders, a barometer of demand ahead, fell to 51.0 from 61.7 in April, the lowest since June 2009.

The U.S. recovery is starting to stumble.

The ADP Employment Services report on private sector hiring and the ISM data were the latest signals that economic growth remained sluggish in the second quarter after hitting a soft patch in the first months of the year.

Data last month showed the economy grew at a tepid 1.8 percent annual rate in the first quarter, softer than analysts had anticipated.

"This only adds fuel to the argument that the slowdown story is here in the U.S.," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.
"This is exactly what we do not want when other significant data shows things are slowing down as well."

The ADP report showed private employers added scant 38,000 jobs last month, falling from a downwardly revised 177,000 in April and well short of expectations for 175,000. It was the lowest level since September 2010.

World Markets:
China is buying debt and they are very severe with anyone who defaults. Some people wonder whether China will seize Portugal’s Macao and one of Greece’s main islands if they default. Why should the Greeks have Greece when they act more like Obama’s Nigerian cousins? Perhaps the Chinese will deport the Greeks. And who would stop them? Would anyone care any more about the socialist unions running and ruining Greece? The Chinese might get rid of the Greek unions and restore Greece to an intelligent civilization again.

Japan’s industrial production rose less than economists forecast in April and unemployment climbed, increasing the likelihood that the economy will contract for a third quarter.

India ranked 87th out of 178 countries in the 2010 Corruption Perceptions Index conducted by Transparency International. Investors in Indian shares consider graft as much of a barrier to economic progress as inflation,

US Economic Highlights
Past Week Initial
Consumer spending cooled in the first quarter more than previously estimated as the jump in food and fuel costs held back the biggest part of the U.S. economy.
Personal Income Apr rose 0.4% vs. 0.5% the previous month
Personal Spending Apr rose 0.4% vs. 0.6% the previous month
PCE Prices - Core Apr 0.2% vs. 0.1% the previous month
Michigan Sentiment - Final May was 74.3 vs. 72.4 the previous month
Pending Home Sales Apr declined -11.6% after being up 5.1% the previous month
Case-Shiller 20-city Index housing prices declined Mar -3.61% after declining -3.33% in April
Chicago PMI manufacturing declined in May to 56.6 the lowest PMI reported for the past 12 months from 67.6 in April. 50 is no growth at all.
Consumer Confidence declined in May to 60.8 from 65.4 in April

Yesterday
MBA Mortgage Index 05/27 declined -4.0% after improving +1.1% in April
Challenger Job Cuts May -4.3% and was worse -5.0% in April
ADP Employment Change May only 38K new jobs down from an inadequate 179K new jobs in April
I services M Index May dropped to 53.5 from 60.4 in April
Construction Spending Apr only 0.4% down from 1.4% in April
Auto Sales Jun They delay reporting bad news.
Truck Sales Jun They delay reporting bad news.

This week
Jun 2 8:30 AM Initial Claims 05/28
Jun 2 8:30 AM Continuing Claims 05/21
Jun 2 8:30 AM Productivity-Rev. Q1
Jun 2 8:30 AM Unit Labor Costs-Rev. Q1
Jun 2 10:00 AM Factory Orders Apr
Jun 2 11:00 AM Crude Inventories 05/28-
Jun 3 8:30 AM Nonfarm Payrolls May
Jun 3 8:30 AM Nonfarm Private Payrolls May - -
Jun 3 8:30 AM Unemployment Rate May
Jun 3 8:30 AM Hourly Earnings May
Jun 3 8:30 AM Average Workweek May
Jun 3 10:00 AM ISM Services May


Market Outlook June 2, 2011
QE1 and QE2 were frauds perpetrated on the world. It pumped $800Billion of American dollars into the world stock markets so that GM, Chrysler and other socialist experiments could avoid about $300Billion in socialist stimulation package losses. That is right, Obama printed and spent over $800Billion dollars to hide about $300Billion in socialist union bailouts. Obama and his administration are a complete fraud. They lie and say they paid off the socialist bailout experiment when they actually almost tripled it. All socialism leads inevitably only to poverty, debt and bankruptcy.

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!

U.S. stocks tanked yesterday on realizing adjusting payment schedules will not avoid 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 sharply last night. China down –1.4%, Hong Kong down -1.6%, India down -0.6%, and Japan down -1.7%.

European markets are down sharply yesterday and are down this morning in a range of about -0.6% to-1.4% half way through their day.

US pre-market futures are flat again today at about 0.2% at 8AM EST after dropping sharply yesterday after the opening.
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