Several organizations lambasted Obama for his Anti American business rhetoric yesterday.

Several organizations lambasted Obama for his Anti American business rhetoric yesterday.
While Boeing is fighting Obama’s effort to stop Carolina’s right to work laws and give big leftist labor unions power to destroy Boeing, Obama wants to raise taxes on the American private jet industry. National Business Aviation Association President Ed Bolen said, “The president has inexplicably chosen to vilify and mischaracterize business aviation -- an industry that is critical for citizens, companies and communities across the U.S., and one that can play a central role in the economic recovery he says he wants to promote". Bolen called on Congress to reject the Obama’s anti American business rhetoric. Ed Bolen said the current tax structure for jet owners as a "proven formula for incentivizing the purchase of American products." "Equally alarming, the president's disparaging remarks reflect a total lack of understanding -- or a complete disregard -- for general aviation in the U.S.," Bolen said, describing his proposal as "bad policy and cynical politics." If Obama cares about helping the poor why does each flight he and his family takes cost hundreds of millions of dollars?

Meanwhile Obama’s business advisor from GE is buying $billions of Airbus Airplanes made in Europe.

The first sign of what would ultimately become a $3 billion fraud surfaced Jan. 11, 2000, when Fannie Mae executive Samuel Smith discovered Taylor, Bean & Whitaker Mortgage Corp. sold him a loan they did not even own. Seven years passed before federal regulators shut down Taylor Bean and prosecutors charged them with orchestrating the $3 billion scam that expanded to “Country Wide” and other Obama election contributors. They got federal bank bailout funds and contributed to the failures of Montgomery, Alabama-based Colonial Bank and its parent, Colonial BancGroup, once among the nation’s 25 biggest depository banks. Taylor Bean would have collapsed then in 2002 according to prosecutors but it survived because government run Freddie Mac began picking up the company’s business within a week of government run Fannie Mae’s cutoff. Obama-Dodd government Senate protected Freddie Mac soon became Taylor Bean’s biggest customer, and the mortgage company grew to be one of its biggest bogus revenue producers, accounting for about 2 percent of single-family home mortgages by volume in 2009, according to a Freddie Mac filing. The culprit gets 30 years for the $3 billion fraud or $300million for each year he serves in prison.

Former President Bill Clinton said Obama lacks not only hope and change but also common sense long-term budgeting and planning needed for success. “We’ve gotten ourselves in a position where we’re spending too much money on today and yesterday, and not money enough on tomorrow,” he said during the first panel discussion at the Clinton Global Initiative’s two-day conference in Chicago. “We’re borrowing too much, so that once the economy picks up, we’re creating tomorrow’s problem.” Clinton said the nation needs to find a better mix for the proportion of the U.S. gross domestic product that is represented by federal spending and taxes. “We can’t afford to spend 25 percent of GDP on government expenditures,” he said. “I don’t think we can afford to tax at only 15 percent of GDP, either, which is about where we are.”

If you bet on Obama you are betting on a Great Depression because he has no plan. Obama only criticizes other people’s plans because he is a coward and afraid to cut government spending.


The NLRB alleges that Boeing violated labor laws by opening a new production line for its 787 airplane in South Carolina to reduce Dreamliner production costs. Obama’s leftist Administrative Law Judge Clifford Anderson is agreed in an early victory for the National Labor Relations Board, which has been widely criticized by business groups for bringing the case. Meanwhile Obama’s business advisor has GE buying $Billions of new Airbus jets.

World Markets:
China’s money supply has declined from 30 percent year-over-year in December 2009 to 15 percent year-over-year at the end of May. The HSBC Flash China Manufacturing Purchasing Managers Index in June fell to 50.1, its lowest level in 11 months. Bank loans fell 25 percent in May from April. China may be in for a hard landing.

Canadians’ confidence in the country’s economic prospects fell to its lowest in two years amid concern that the global recovery is stalling. The proportion of Canadians who predict a weaker economy in the next six months rose to 23.6 percent from 19.1 percent in March.


US Economic Highlights
Past Week
This time Obama had them drop last months first two statistics to make this month look better. We will use the original numbers.
Monday
Consumer spending stagnated in May as employment prospects dimmed and inflation rose to 3.6%/ year.
Personal Income May 0.2%, down from 0.4% reported last month.
Personal Spending May –0.1%, down from 0.4% last month
PCE Prices - Core inflation May 0.3% or 3.6%/yr, above the FED 2.5%/yr target level
Case-Shiller 20-city Index Apr showed new housing prices down -3.96% in April to an 11 month low. Prices decreased in the year ended April by the most in 17 months, showing genius Obama’s housing zero down payment policy for people who cannot afford a house remains a major obstacle for the U.S. recovery. Also the S&P/Case-Shiller index of property values in 20 cities fell 4 percent from April 2010, the biggest drop since November 2009, the group said today in New York. A backlog of foreclosures and falling sales raise the risk that prices will decline further, discouraging builders from taking on new projects. The drop in property values and a jobless rate hovering around 9 percent are holding back consumer sentiment and spending, which accounts for 70 percent of the economy.
Consumer confidence unexpectedly fell in June to a seven- month low, indicating that slowing employment gains are weighing on Americans’ outlooks, another report today showed. The Conference Board’s index decreased to 58.5 from a revised 61.7 reading in May that was worse than previously estimated.
http://www.martincapital.com/chart-pgs/Pg_conco.htm
MBA Mortgage Index 06/25 -2.7% Vs -5.9% showing home prices are not dropping as fast as before.
Pending Home Sales May rose 8.2% Vs slowing last month -11.6%. At the Obama’s rate it will take over 60 years to liquidate all the homes in default.
Crude Inventories 06/25 dropped -4.375M this week and -1.711M last week. Selling the oil reserves is doing nothing so far for increasing oil available and prices are rising again.

Yesterday
Initial Claims 06/25 428K unchanged from first reported last week 429K
Jun 30 8:30 AM Continuing Claims 06/18 3702K from first reported last week3697K
Jun 30 9:45 AM Chicago PMI Jun 61.1 up from 56.6

This week’s coming reports
Jul 1 9:55 AM Michigan Sentiment - Final Jun
Jul 1 10:00 AM ISM Index Jun
Jul 1 10:00 AM Construction Spending May
Jul 1 3:00 PM Auto Sales Jun
Jul 1 3:00 PM Truck Sales

Market Outlook July 1, 2011
State of Minnesota started its second shutdown in 6 years, with a partisan divide preventing a deal on the $5B deficit. Democratic Gov. Mark Dayton refused to call a special session so lawmakers could pass a "lights on" budget bill to keep government running. Dayton refused, saying he's been clear for months that he would only agree to a total budget approach. Minnesota residents may discover they don’t need government as much as they thought.

U.S. stocks rose Thursday and hit the 50 DMA and 100 DMA resistance lines at their crossover. Today we look to see how the market will test the rally, as it seems to be forming a head and shoulders sell signal too. The stock market again on the new bear market resistance trend line! On a cash flow (not price basis) it is a lot worse. Looks like the market will now follow the upper limit down in a continuing bear market. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=6m&l=on&z=m&q=l&p=%2Ce50%2Ce100&a=m26-12-9&c=

and the S&P:
http://finance.yahoo.com/q/ta?s=^GSPC&t=6m&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=%5EDJI&t=6m&l=on&z=m&q=l&p=e100%2Ce50&a=m26-12-9&c=



The bear market bounce continued yesterday. We think it is a dead cat bounce because investors are complacent. The VIX is a measure of concern. 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! The market typically bottoms with the VIX at 28 or higher. VIX now is only at 17 with 15 being complete investor complacency. It is up only 2 points and far from indicating a market bottom. But it could be starting to rise now.
http://finance.yahoo.com/q/bc?s=^VIX&t=3m&l=on&z=m&q=l&c=

Obama and MSNBC/Pravda have been lying about recovery since Obama got elected. This was Cramer/Lenin/Pravda’s main chart for claiming growth until it showed world stagnation instead. 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 up slightly last night. China down –0.12%, Hong Kong up 1.5%, India down -0.5%, and Japan up 0.5%.

European markets are flat this morning in a range of about –0.2% to 0.4% half way through their day.

American markets are flat near 0.1% this morning at 7 AM