they vote for arrogant egotistical ignorant banana republic Obama type presidents

Greenspan prefers the Ryan Plan with no tax increase and all spending cuts but Greenspan is extremely afraid of a default even of one or two days due to the risk to the world economy that we do not want to occur. This current Obama problem he says will last 10 years. He said the education of America's next generation and their productivity is far lower than the generation of the cold war, which is retiring. He said the economy can not afford the current spending. This is the first time since 1791 that we are getting close to default. This is the first time ever that we are reaching the limit of world resources available for expansion. It no longer makes sense to give the elderly cosmetic surgery and major operations even if they can afford it because they drive up the demand and hence medical costs for everyone. He said nothing though of limiting those expenditures for young people who refuse to cooperate in the schools and plan on a life of crime, drugs, and unsafe sex. They drive productivity to a low banana republic level and they vote for arrogant egotistical ignorant banana republic Obama type presidents.

Greenspan said American students do well on international tests in the 4th grade, but by 12th grade the American educational system puts American students at the bottom of the heap. It means the students are fine but the unionized leftist driven educational system is dumbing down our young labor force.

He said production may be so low now that productivity cannot go lower in America and that is helping America bounce along the bottom rather than break down completely.

He said the leftists in Greece and Iceland cannot be melded politically with Germany, Austria, and France and the EU cannot exist unless it also has a common political and economic agreement.

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.

He said distressed sales with huge discounts are hiding America’s real inflation rate.

Greenspan said commercial real estate is in worse shape than residential. Dodd-Frank rules will not regulate the market they will eliminate the market. The regulators do not understand that their rules imply the underlying first principals of a USSR managed economy of guaranteed failure.

He said rational self interest would work it executives understood their long term self interest but many steal whatever they can grab and then take a golden parachute. Greenspan does not know how to deal with that in a free market system. In China it is easy. You tell them they will be quietly taken under the bridge, shot and then buried in a hazardous waste dump.

Greenspan agrees the dead real estate building market is the problem of current stagnation and that is driving up long term interest rates that further. No recovery can occur until the leftists stop giving free housing to other leftist voting deadbeats that are destroying the real estate markets. He said that must be done but even that cannot guarantee a recovery if deficit spending continues.

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 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 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.

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 experiment when they actually almost tripled it.

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
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
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.

Yesterday
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

Jun 3
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.
This week
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 3, 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 up 0.8%, Hong Kong down -1.3%, India down -0.6%, and Japan down -0.7%.

European markets are down again yesterday and are down this morning in a range of about +0.3% to-1.4% half way through their day.

US pre-market futures are flat again today at about -0.3% at 8AM EST after dropping slightly yesterday after the opening.
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