Our only real hope is that Obamacare is declared unconstitutional. Obamacare will completely destroy the American work ethic and the American economi

Our only real long-term hope is that Obamacare is declared unconstitutional. Obamacare will completely destroy the American work ethic and the American economic engine powering the world if it is implemented. Working Americans will lose all hope if Obamacare for his chosen people (his leftist and indigent supporters) is instituted. It will be run by his chosen people (40 million who already get free emergency service) for his chosen people (just as welfare is run) and will bankrupt America. We need to undo all the legislation that the democrat and socialist Congress admittedly passed without even reading it. Former KGP head and current Russian dictator Vladimir Putin warned the world last week that Americans are already parasites living beyond their means. He includes the ones who work for a living.

We are fortunate that at least the tea party has stopped some of Obama’s profligate spending and has put a leash on him. We still need to vote out all the remaining liberals and socialists of both parties.

Standard & Poor's on Friday downgraded US credit rating is to AA+ from AAA and said the expenditure reductions were half what they should have been. Cranky Obama is president of the first US government to be so incompetent and quarrelsome as to be downgraded since the ratings were created 70 years ago. Cranky Obama, dirty Harry, and cranky Pellosi together can’t generate a spark of electricity between them.

Greenspan thinks when the private sector feels safe they will release over $.8 Trillion. He does not think there will be a double dip recession but as government shrinks there will be a flat spell and then recovery.

The big question remains, “Why doesn’t the government require people to work for local towns, states, or national parks to earn their welfare checks.” The Obama supporters need to share some pain too don’t they? Why is it that only people who have always worked hard, stayed off drugs, raised their children, put their children through schools, paid into social security and paid Federal, State, and Local taxes have to be the only ones feeling the pain of taxes that support government. Why can’t some of Obama’s chosen people share some of the pain too?

The Obama government forced Bank of America to buy Countrywide Financial and Merril Lynch in 2008. When BAC complained about it a few weeks later the Obama socialists forced the BAC president to resign or face harassment until he was thrown out. He resigned. Now the Obama socialists are forcing BAC to buy back Countrywide mortgages that didn't live up to the contractual representations and warranties it made when selling the mortgages to Fannie and Freddie. This shows the rotten to the core nature of the way Obama does his socialist business.

We are fortunate that at least the tea party has stopped some of Obama’s profligate spending and has put a leash on him. We still need to vote out all the liberals and socialists of both parties. 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. It was WWII not FDR that 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 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.


World Markets:
The US may not have a double dip but it certainly will be trimming consumption and expenses for the rest of this year. That should be felt by the emerging markets just as though the American economic had stopped. In addition, the twin debt crises in Europe and the United States are causing market turmoil and raising fears of the rest of the world sliding back into recession. Finance ministry officials of the Group of Seven countries held conference calls over the weekend to discuss the crisis. The risk is that the US downgrade is unsettling the markets again as the next potential European meltdown phase approaches. We do not believe there will be another meltdown starting before at least several weeks because Obama moves very slowly and he still is not recognized as a threat to Europe because he loves socialism and still thinks ignorant politicians in planned economies are economic wizards.

If TXN is going to pick up so much new business as rumored, why have insiders at TXN recently sold 70% of their shares?

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.

Bad goes to worse as Spain’s hair-brain communist People’s Party threatens to oust the Socialist Party in new November elections. Communist authoritarian Alfredo Pérez Rubalcaba slowly takes over from Zapatero in Spain. This alone could trigger a no-confidence vote by Spain’s bondholders as they flee Spanish investments.


Emerging markets plummeting to 2009 levels. All have had crossovers of the 100DMA and the 200DMA. 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. This is the most amazing decline because the Swiss have such vulnerable banks who have invested in government securities.
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SSMI

American Economy-
Last Week
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.
Initial Claims 07/30 400K increased from 398K reported last week.
Continuing Claims 07/23 3730K increased from 3703K reported last week.

Friday no doubt had bogus USSR/Obama government type economic numbers not correctly adjusted for seasonal effects. They appear to be Obama manipulations. They report the direct opposite of the first four days of the week. Next they will degrade these bogus optimistic Friday numbers otherwise the situation would look even worse next month. Here are the Obama numbers.
Nonfarm Payrolls Jul 117K up from 18K last month.
Nonfarm Private Payrolls Jul 154K up from 57K last month
Unemployment Rate Jul 9.1% down from 9.2% last month
Hourly Earnings Jul up 0.4% from 0.0% gain last month
Average Workweek Jul 34.3 stable
Consumer Credit spending Jun reported improved $15.5B up from $5.076B last month.

This Week
Aug 9 8:30 AM Productivity
Aug 9 8:30 AM Unit Labor Costs Q2
Aug 9 2:15 PM FOMC Rate Decision Aug
Aug 10 7:00 AM MBA Mortgage Index 08/06
Aug 10 10:00 AM Wholesale Inventories Jun
Aug 10 10:30 AM Crude Inventories 08/06
Aug 10 2:00 PM Treasury Budget Jul
Aug 11 8:30 AM Initial Claims 08/06
Aug 11 8:30 AM Continuing Claims 7/30
Aug 11 8:30 AM Trade Balance Jun
Aug 12 8:30 AM Retail Sales Jul - 1.0%
Aug 12 8:30 AM Retail Sales ex-auto Jul
Aug 12 9:55 AM Mich Sentiment Aug
Aug 12 10:00 AM Business Inventories Jun

Market Outlook August 8, 2011
Over $41.2 billion was taken out of funds by investors during the past month. That is above in beyond the hundreds of $billions that normally are invested by 401 plans every month. So much money is now in cash (not even Treasury bonds) in banks that Mellon announced they will charge interest (not pay interest) on large cash deposits.
http://online.wsj.com/article/SB20001424053111903366504576488123965468018.html

As expected the Dow Jones industrial average fell a few percent and recovered Friday. While it may be too late for Europe and Asia, American markets probably will have yet another rally. The wise expect a temporary market gain soon. Therefore the wise were 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. We expect a gain and another drop and another gain before the end of the year. There may be very little net gain this year unless Obamacare is declared unconstitutional. Obamacare will kill the American economy if it is implemented. American Medicare is bankrupt and entitling 40 million people who have never supported themselves and who already get free emergency service, to get free drugs, prescribed self-esteem breast implants, and hip replacements, will bankrupt America.

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 hit the panic level. It normally peaks at 30 to 40 before a crisis is over and it briefly hit 39.25 yesterday. So the VIX implies this decline is about over. However the cash flow indicators say we are likely to remain very volatile going forward as cash swings in and out.
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. We are so low now the risk of a new low is getting small. 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
Last Friday
Asian Stocks were down. China down –3.8%, Hong Kong down –2.2%, India down –1.8%, Taiwan down –3.8%, Seoul down –3.8%, and Japan down –2.2%.

European markets were down Friday and down today by about –1.5% to -3.7% with the Swiss still falling the fastest.

American markets futures were down about –2.4% but the market fell more and then recovered. AM EST

It appears we are near or passing the capitulation point. Still we expect little net gain this year unless Obamacare is declared unconstitutional.