Judicial Watch is accusing President Obama of violating a funding ban that he signed into law that prohibits the flow of federal money to the communit

Judicial Watch is accusing President Obama of violating a funding ban that he signed into law that prohibits the flow of federal money to the community activist group ACORN or any of its affiliates. A sting last year showed that the leftist Acorn group helped expand illegal drug and prostitution within cities. Judicial Watch says that in March, the U.S. Department of Housing and Urban Development (HUD) issued nearly $80,000 in grants to Affordable Housing Centers of America (AHCOA), which is an offshoot of ACORN.

Obama’s bluff about pumping out oil reserves is not working. No one believes anything Obama says anymore. He is America’s first lame duck one term president. Insiders say Hilary Clinton will challenge Obama because he is the least competent president since Lyndon Johnson. Insiders say Obama will then withdraw from the race and support Hilary after the New Hampshire primary.

Mexican investigation continues into the Obama operation that helped send thousands of guns south of the border, after which Obama used it as an excuse to try to disarm Americans. Mexican lawmakers say they'll press for extradition and prosecution in Mexico of Obama officials who authorized and ran the operation. "I obviously feel violated. I feel my country's sovereignty was violated," Mexico Sen. Rene Arce Islas told Fox News. "They should be tried in the United States and the Mexican government should also demand that they also be tried in Mexico since the incidents took place here. There should be trials in both places."

Taxpayers including most seniors want welfare entitlements cut and federal and state employee health benefits, and pensions cut. Retired seniors are still paying more in taxes than Obama’s welfare voting base. Obama keeps threatening to cut taxpayer earned social security to retired taxpayers if Republicans cut entitlements to federal and state employees who constitute dangerously big government like Greece.

World Markets:
China President may be gravely ill.

Denmark’s banks face a decline in earnings as the fallout from Europe’s toughest resolution laws sends funding costs higher. George Soros said today he is buying their bonds.

Moody's Investors Service on Tuesday cut Portugal's debt rating to junk ratcheting up the pressure on euro zone governments to cut government jobs.

Moody’s Investors Service said the Chinese banks credit rating could be cut. Chinese banks’ loans to local governments are about 3.5 trillion yuan ($540 billion) more than the national auditor’s estimate”.



US Economic Highlights
Past Week
Initial Claims 06/25 428K unchanged from first reported last week 429K
Continuing Claims 06/18 3702K from first reported last week3697K
Chicago PMI Jun 61.1 up from 56.6 , good but specious Obama manipulation of data USSR style
Michigan Sentiment - June down to 71.5 from 71.8 last month.
Jul 1 10:00 AM ISM Index Jun up to 55.3 from 53.5 last month. Nothing much, see:
http://www.martincapital.com/chart-pgs/Pg_ism.htm
Jul 1 10:00 AM Construction Spending May down -0.6% from initially reported 0.4% last month
Factory Orders May regained 0.8% of the -1.2% loss incurred last month.

Wednesday
MBA Mortgage Index 07/02 fell -5.2% twice the fall of -2.7% last month.
Employers in the US announced more job cuts. Challenger Job Cuts announced in Jun are at 5.2% where as they hired last month ( -4.3%)
Jul 6 8:15 AM ADP Employment Change Jun… too bad to release?
ISM Services, The U.S. service sector, which employs nearly 90 percent of the country's work force slowed from May’s to June

This Week
Jul 7 8:15 AM ADP Employment Change
Jul 7 8:30 AM Initial Claims 07/02
Jul 7 8:30 AM Continuing Claims 06/25
Jul 7 11:00 AM Crude Inventories 07/02
Jul 8 8:30 AM Nonfarm Payrolls Jun
Jul 8 8:30 AM Nonfarm Private Payrolls Jun
Jul 8 8:30 AM Unemployment Rate Jun
Jul 8 8:30 AM Average Workweek Jun
Jul 8 8:30 AM Hourly Earnings Jun
Jul 8 10:00 AM Wholesale Inventories May
Jul 8 3:00 PM Consumer Credit May

Market Outlook July 7, 2011

U.S. stocks were flat again Wednesday on low volume as investors back away. The very old short term hedge fund strategy calls for entering the market by the next to last trading day each month and exiting by the 4th trading day of the following month. That would be tomorrow. It is best at the end of a quarter when the funds want to dress up their returns.

The stock market bubble is up 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=

and the S&P:
http://finance.yahoo.com/q/ta?s=^GSPC&t=5y&l=on&z=m&q=l&p=m50%2Ce100&a=m26-12-9&c=

and the DJI shows a head and shoulders sell signal forming too.
http://finance.yahoo.com/q/ta?s=^DJI&t=5y&l=on&z=m&q=l&p=e100%2Ce50&a=m26-12-9&c=

Low VIX correlates with overconfidence and immanent decline and now fear must rise substantially before the current market sell-off can be considered over. Look how high the VIX has to go now before the bottom is hit in the past!
http://finance.yahoo.com/q/bc?s=^VIX&t=6m&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 mixed last night. China down -0.6%, Hong Kong flat 0%, India up 1.8%, and Japan down -0.1%.

European markets are up this morning in a range of about 0.2% to 0.7% half way through their day.

American markets are up near 0.3% this morning at 7 AM