Obama may think he is another FDR socialist but FDR had a brain. Obama flushed the stimulus package down the bowl foolishly thinking it would trickle

FDR turned a recession into the Great depression because the university elite told him that the socialists Lenin, Stalin, and Hitler were the wave of the future. The WWII not FDR got America out of FDR’s depression. Let us hope Obama does not start WWIII. Obama may think he is another FDR socialist but FDR had a brain. Obama flushed the stimulus package down the bowl foolishly thinking it would trickle back up from his chosen people to working people. But Obama’s free houses, racist reparations, and other benefits for his chosen people who think they are too good to work, created nothing but a high out of control increase to national debt. He crippled the construction industry and then shot it through the heart by shamelessly continuing guaranteed mortgages to his chosen people even to this very day. All his so call “fat cats” went off to hide now from the “Idiot Obama” (he is called far worse by most Americans). Obama’s chosen people happen to be the demographic were most of America’s obesity resides. They don’t get slim sitting on their fat asses while true Americans work for a living. Socialism is an import that comes with the lazy people who are so lazy they don’t want to learn the American language much less the American culture of the work ethic.

Concern that the World economies are stagnating erased $1.07 trillion from American equities in less than two weeks, according to data compiled by Bloomberg. The S&P 500 plunge of 2.6 percent Tuesday was the biggest one-day loss in a year and gave the index the longest losing streak since October 2008. But since then stocks plunged another 5% yesterday bringing the market back to where it was in 2009. The world knows Obama has squandered the American treasure on his welfare society and Obama only has more unemployment, and more government waste to show for it. The EPA wants to destroy the American auto industry mandating cars that are 50% more efficient. The only way to do that is to have horse drawn cars. Obama wants the country to run on hay. He should lay off his chosen people from their do-nothing government jobs and perhaps we could begin to dig out of the hole Obama is digging.

Obama raised rent subsidies for his chosen people; gave them a negative tax rate, increased their welfare stipends; still gives them houses for no money down, no questions asked; gave $billions of the money of hard working Americans for un-documented and false claims that the Farm Bureau did not subsidize his chosen people enough (all claims that were rejected by the courts prior to Obama). But at least Obama’s chosen people are happy as Obama forces hard working Americans out of jobs to join his chosen people for food and housing assistance.

Moody's Investors Service warned on Tuesday that the USA rating while safe for now has been assigned a negative outlook. Fitch Ratings warned the US rating could be downgraded because the action is insufficient.

World Markets:
Asia stocks continue to plummet, driving the benchmark index to the lowest level in 18 months, as global equities markets plunged on concern slumping U.S. growth and Europe’s debt crisis will push the world economy into recession.

Corruption in India is one source of economic problems as more bribes and false corporate reporting has come to light.
Corruption in China appears to be government policy led by inferior fraudulent knock-off copies of American products including three government approved fake Apple stores selling discount knockoff copies of Apple products.

Stocks in Europe fell to another ugly 10-month low, Asia down sharply and the Franc and Yen hit highs. Italy, Spain, and Greece are having still more difficulty selling their government bonds.

More than 50% of the European companies in the Stoxx Europe 600 Index reporting earnings are missing analysts’ projections. That’s the most since 2006. The benchmark gauge lost 3.1 in July, the largest decline at the start of an earnings season since 2010.

Banks in the biggest emerging markets are losing the confidence of investors as loans turn sour after a two-year credit binge. The Swiss market plunged the most yesterday.

Bad goes to worse as Spain’s hair-brain communist People’s Party threatens to oust the Socialist Party in new election.

Emerging markets plummeting to 2009 levels. Brazil http://finance.yahoo.com/q/ta?s=%5EBVSP&t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=

Asian markets ready to plummet. China
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SSEC
India
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^BSESN

Europe’s Swiss market is now plummeting down to 2009 levels.
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SSMI

American Economy-
Past Week
GDP-Adv. Q2 up only 1.3% and down from the previous estimate of 1.9%
GDP Deflator Q2 2.3% which means without inflation the economy contracted 0.3% the inflation last quarter was 2.0% which means without inflation the economy contracted only 0.1% last time. Therefore the economic contraction accelerated from 0.1% to 0.3%.
Employment Cost Index Q2 rose to be 0.7% from 0.6% last quarter.
Chicago PMI Jul shrank to 58.8 from 61.1 reported last time… at a depression level
Michigan Sentiment - Final Jul 63.7 continued show shrinkage of confidence from week level 63.8 last time…bottoming out
IS Manufacturing Index Jul declined to 50.9 from 55.3 last month… at a depression level
Construction Spending Jun rose 0.2% after declining -0.6% last month…good
Personal Income for Jun increased only 0.1% after increasing 0.3% last month.
Personal Spending in Jun fell -0.2% after stagnating at 0.0% last month.
PCE Prices ( Core) for Jun up 0.1% after increasing 0.3% last month.
Auto Sales Jul - NA , Truck Sales Jul – NA. the auto industry is in such a shambles they don’t report Obama-bull officially any more for fear of possible fraud accusations.

MBA Mortgage Index 07/30 up 7.1% compared to -5% last month. Very good for housing
Challenger Job Cuts Jul 59.4% compared to 5.2% last month. Obama job losses
ADP Employment Change Jul 114K compared to 157K. Obama job stagnation
Factory Orders Jun -0.8% compared to 0.8%. Obama economic stagnation
ISM Services Jul 52. compared to 53.3 Obama loss of service jobs
Crude Inventories 07/30 0.950M compared to 2.296M Obama energy shortages.

Yesterday
Initial Claims 07/30 400K increased from 398K reported last week.
Continuing Claims 07/23 3730K increased from 3703K reported last week.
Today
Aug 5 8:30 AM Nonfarm Payrolls Jul
Aug 5 8:30 AM Nonfarm Private Payrolls Jul
Aug 5 8:30 AM Unemployment Rate Jul
Aug 5 8:30 AM Hourly Earnings Jul
Aug 5 8:30 AM Average Workweek Jul
Aug 5 3:00 PM Consumer Credit Jun

Market Outlook August 5, 2011
The Dow Jones industrial average fell off a cliff, dropping more than 500 points Thursday, erasing gains for the last twenty months as investors gave Obama a vote of no confidence. While it may be too late for Europe and Asia, American markets probably will have yet another rally. The wise expect a temporary market recovery any day. Therefore the wise are buying stock of good companies that have been driven down in price. A rally in a week or two could then recover half the recent losses. But this is not the time for the faint hearted to invest because many technical sell signals have been issued. The future of the world is uncertain under Obama leadership vacuum.

The bargains may now continue as the recession is beginning to once again grip emerging markets and Europe. But some stocks have a long way to fall yet. You can see the VIX finally is rising showing the panic is rising. It normally peaks at 30 or 40 before a crisis is over and it hit 31 yesterday. So the VIX implies this decline is going to end in a few days or weeks but will probably only recover half the losses as it typically does at the beginning of a decline.
http://finance.yahoo.com/q/bc?s=^VIX&t=2y&l=on&z=m&q=l&c=

The May 2011 low was shattered yesterday and that is a confirmation of a head and shoulder breakdown. If that is the case there could be a continued sharp sell off. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=1y&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

Recovery last year was one of Obama’s big lies as he continues to divide America. But now he does not talk about his great accomplishments very much. Click on the 5yr chart and see full effect of the slowdown in world dry shipments. Now most of his supporters are quietly admitting Obama has done nothing as president to help the economy. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian Stocks were mixed last night. China down -2.2%, Hong Kong down –4.3%, India down –2.2%, Taiwan down –5.6%, Seoul down –3.7%, and Japan down –3.7%.

European markets were down yesterday by about -4% and mixed this morning are in a range of about –3.3% to +1.3% half way through their day.

American markets futures are down today about –0.4% this morning at 8:30 AM EST