The Italian stock market plummeted 4% yesterday after diving 7.2% last week.

Yesterday U.S. stocks lost half the gains of the previous two-week rally as investors back away. The fact that American corporations are only making good profits at the expense of the $1.5 Trillion dollar/yr deficit Obama is running. That leftist wealth redistribution is unsustainable.

Obama said he wants a personal “Republican Guard” to maintain his domestic security in light of American revolutionary Tea Party forces and threats from subversives like Rush Limbaugh. "We cannot continue to rely only on our military in order to achieve the national security objectives that we've set," he said Wednesday. "We've got to have a civilian national security force that's just as powerful, just as strong, just as well funded." See:
http://kathymendla.blogspot.com/2008/10/obama-ready-to-subvert-posse-commitas.html


World Markets:
Brent oil is over $115/barrel even with the world economy is going nowhere. Energy costs will continue to stagnate the world as it did before Ronald Reagan went to supply side economics. That points out a real problem for the leftists. Not only is big government too expensive but leftist stupidity shows up in their hatred of development. They have shut down the American transportation infrastructure since the 1970’s when the Sierra Club and other environmentalists have stopped virtually every highway and railroad initiative by forcing them through already highly developed regions making land and mitigation costs prohibitive and ruining economies causing cost over-runs of 200% to 400% like Boston’s big-dig. Leftists are an even bigger problem outside of America because there they are not idealists but just corrupt and stupid. Projects in Russia now go through three hurdles of corruption. After two levels American companies think they are almost to a final deal. But the third set of bribes that are suggested usually is enough for even the most gullible western do-gooders to realize that in leftist run countries there is no end to extortion of foreign companies. That is how you keep foreigners out. Leftists tend to be racist, stupid, and Xenophobic. Just look at the more successful leftists in Japan today, and at Russia and Germany in the late 1930’s.

Monday Bloomberg reported Europe’s debt crisis and China’s efforts to curb inflation signal the 99 percent rally in the S&P 500 since March 2009 has gone too far. A report showing employers in the U.S. added 83 percent fewer jobs in June than economists projected heightened concern the economy is slowing.

Euro-zone finance ministers are bogged down in debate Monday, as a proposal mapped out for private-sector participation in Greece's next bailout faces impossible hurdles. One official said the voluntary participation "is not going forward." "It's over." Spain, Portugal, Italy and Ireland are particularly uncomfortable with a proposal that would allow selective Greek default, another said. "Some feel that there is no way to guarantee what kind of effects it will have, how contagious it will be, and fear investors will flee their bond markets. One privately described it a suicide in the making," he said.

Many analysts have warned for months that if the crisis ensnared Spain and Italy the future of the eurozone and the 12-year-old Euro currency would be threatened because there is no way the rest of Europe could bail out those two huge economies. “Spain and Italy are nearly five times the size of Greece, Portugal and Ireland and carry nearly four times the volume of debt

US Economic Highlights
Past Week
Michigan Sentiment - June down to 71.5 from 71.8 last month.
Jul 1 10:00 AM Construction Spending May down -0.6% from initially reported 0.4% last month
Employers in the US announced more job cuts.
Nonfarm Payrolls Jun hiring dropped to only 18K from 54K last month. We need 250K to get back to normal
Nonfarm Private Payrolls Jun fell to 57K from 83K last month indicating a 3K drop in government jobs.
Unemployment Rate Jun rose to 9.2% from 9.1% last month.
Wholesale Inventories May rose 1.8% vs. 0.8% last month which is not good

This Week
Jul 12 8:30 AM Trade Balance May
Jul 13 7:00 AM MBA Mortgage Index 07/09
Jul 13 7:00 AM MBA Mortgage Purchase Index 07/09
Jul 13 8:30 AM Export Prices ex-ag. Jun
Jul 13 8:30 AM Import Prices ex-oil Jun
Jul 13 10:30 AM Crude Inventories 07/09
Jul 13 2:00 PM Treasury Budget Jun
Jul 13 2:00 PM FOMC Minutes Jun 22
Jul 13 2:00 PM Treasury Budget Jun
Jul 14 8:30 AM Initial Claims 07/09
Jul 14 8:30 AM Continuing Claims 07/02
Jul 14 8:30 AM Retail Sales Jun
Jul 14 8:30 AM Retail Sales ex-auto Jun
Jul 14 8:30 AM PPI Jun
Jul 14 8:30 AM Core PPI Jun
Jul 14 10:00 AM Business Inventories May
Jul 15 8:30 AM CPI Jun
Jul 15 8:30 AM Core CPI Jun
Jul 15 8:30 AM Empire Manufacturing Jul
Jul 15 9:15 AM Industrial Production Jun
Jul 15 9:15 AM Capacity Utilization Jun
Jul 15 9:55 AM Mich Sentiment Jul


Market Outlook July 12, 2011
The Italian stock market plummeted 4% yesterday after diving 7.2% last week. Yesterday Spanish stocks slid 2.7% for the day, Portugal slumped 4.1%, France fell 2.7% and the German market sank 2.3%.

Obama business advisor, GE/Pravda Chairman and CEO Jeffrey Immelt acknowledged there needed to be some policy changes by Congress and the Obama administration. But he said that the responsibility for hiring lay with fat-cat businesses. This is the leftist that has GE paying 1/6 the taxes Obama says business should pay. This is the leftist who has moved most American jobs to leftist-leaning countries. Leftists executives don’t like America, they move American business to leftist countries like any good communist would do. It you look at which companies move jobs to leftist countries you will find big contributors to Obama run them all and other democrat-socialists. Leftist corporation executives get their power from American leftist government officials who give them government contracts to reward leftists who then pay the corrupt leftist politicians off with “contributions.” GE pays off corrupt leftist politicians primarily with taxpayer money from defense contracts. If we cut off all of GE’s government contracts most layoffs would be overseas.

Yesterday U.S. stocks lost half the gains of the previous two-week rally as investors back away. The fact that American corporations are making good profits is at the expense of the $1.5 Trillion dollar/yr deficit Obama is running. It is unsustainable. The stock market bubble remains near 2007 levels while real unemployment stands close to 20% and state and local governments have run up many $trillions in deficits that have to be paid back. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=5y&l=on&z=m&q=l&p=e50%2Ce100&a=m26-12-9&c=

Low VIX correlates with overconfidence and immanent decline and now the VIX may actually show the decline is just beginning.
http://finance.yahoo.com/q/bc?s=^VIX&t=3m&l=on&z=m&q=l&c=

Recovery is one of Obama’s big lies just like his campaign lie that we were in a depression one year before the leftists destroyed American real estate and banks by requiring US banks give mortgages to people of Obama’s ethnic heritage who had no visible source of income to make the mortgage payments. Click on the 5yr chart and see full effect of the slowdown in world dry shipments. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian Stocks were down last night. China down -1.7%, Hong Kong down –3.1%, India down –1.7%, Taiwan down -2%, and Japan down –1.4%.

European markets are down this morning in a range of about –1.5-% to –2.6% half way through their day.

American markets are down near –0.9% this morning at 7 AM