President Barrack Obama admitted Monday that his standoff in Washington over the debt ceiling damaged the economy by creating more uncertainty

President Barrack Obama admitted Monday that his standoff in Washington over the debt ceiling damaged the economy by creating more uncertainty about the nation’s direction. There were three workable bi-partisan and three additional Republican proposals, none of which he would consider because they could come up again during the Obama election campaign. Obama destroyed America’s credit rating to make his campaign easier.

The daily Gallup poll that tracks presidential approval ratings showed Monday that President Obama's fell to 39 percent. Democratic pollster Doug Schoen said on Monday's Power Play Live that at 39 percent, "He's unelectable."

Google Inc., the biggest maker of smartphone software, agreed to buy Motorola Mobility Holdings Inc. for $12.5 billion in its largest acquisition, gaining mobile patents and expanding in the hardware business.

Time Warner Cable Inc., the second-largest U.S. cable- television operator, agreed to buy Carlyle Group’s Insight Communications Co. for $3 billion in cash. Provimi SA said Cargill Inc. offered to buy the company for an enterprise value of 1.5 billion euros.

Government figures show that global demand for U.S. stocks, bonds and other financial assets weakened in June from a month earlier when Obama vetoed the first of six plans Congress put forth for raising the debt limit. There were 3 bipartisan and 3 Republican only proposals Obama rejected. Obama caused a week delay because Obama objected to having another debt ceiling hit before the 2012 election.

Obama is a curse not just on America. He is a curse on the entire planet. As soon as he approved offshore drilling America had the worst offshore well disaster in history. As soon as he approved a restart of America’s nuclear industry Japan had the second worst meltdown in history. As soon as he started the green battery automobile plan with an absurd moronic goal of a 50% improvement in efficiency in three years… the liar-leftist, socialists, and communists of the world started to go broke on all their green dreams. After Obama throws billions to the vicious and idle ACORN in America, other nasty, vicious, and idle community activists in Britain who like Obama and who already are the beneficiaries of socialism went rioting in Britain giving welfare societies around the world a black eye. Thanks to Obama threatening to veto the three bi-partisan congressional agreements on the debt ceiling days before the deadline, the USA now has a lower credit rating than France does. The world can hardly wait until Obama quits and goes back home to Nigeria where his luck is normal and he can be to be a community activist again. The Nigerians can tell that Obama will return soon as their luck is already beginning to turn sour.

David Cameron made a speech in Witney Oxfordshire, August 15, 2011, about the riots that hit England last week. "On schools, welfare, families, parenting, addiction, communities; on the cultural, legal, bureaucratic problems in our society, too, from the twisting and misrepresenting of human rights that has undermined personal responsibility, to the obsession with health and safety that has eroded people's willingness to act according to common sense – and consider whether our plans and programmes are big enough and bold enough to deliver the change that I feel this country now wants to see."
"Irresponsibility. Selfishness. Behaving as if your choices have no consequences. Children without fathers. Schools without discipline. Reward without effort. Crime without punishment. Rights without responsibilities. Communities without control. Some of the worst aspects of human nature tolerated, indulged – sometimes even incentivised – by a state and its agencies that in parts have become literally de-moralised,"

America may face riots like in Greece and Britain. Fortunately Obama is just stupid enough to threaten to withhold the salary of American warriors before he cuts the benefits to his vicious and idle chosen people. Fortunately Obama is stupid enough to release American warriors into the Obama Depression unemployment lines when he scales back the Armed Forces and American unemployment spikes upward. Fortunately most Americans will stomp out Obama’s viscous and idle chosen people if they rise up to subvert or even attempt to corrupt America’s Constitution as they have corrupted everything else.

Economic stupidity is recognized when liar-leftists try to control development by raising the cost of production of things that liar-leftists don’t like such as gasoline, heating oil, natural gas, highways, wealth creation, and research and development of energy related technology. Liar-leftists are “unibombers” at heart fighting against free enterprise that generates the advances of science and technology that are what is needed to keep America humming.

The economic crisis is the result of the contagion of socialism that corrupts all economic and social institutions in favor of the vicious and idle who form the leisure class of socialist societies. When the vicious and idle leisure class becomes a 51% majority, that is when the government breaks down and tyrants rise up to rule demanding changes to the Constitution so that they have no term limits and dictatorial powers like Obama’s hero in Venezuela did. Americans have watched the violence of the vicious and idle in Greece and Britain and are beginning to see the future consequences of Obama’s policies. Obama is undermining American liberties while destroying the American economy by replacing free enterprise with ignorant-socialist-Obama-Czars. Obama's stumbling bumbling policies will soon be wrecking the environment too with high maintenance windmills and toxic worn out car batteries.


World Markets:
Germany and France cannot afford to bail out Greece, Portugal, Italy, and Spain. Perhaps they will force the troubled countries off the Euro until they meet the original limited deficit spending requirements that were in place when the EURO was established. Remember Germany was the first to violate the GDP debt limit requirement because they were bailing out East Germany. France was next and then the EU discipline broke down completely

The Swiss government and central bank are in talks about a possible target for the Swiss franc to halt its gains.

We believe that for now we have seen the worst of last weeks panic that the hedge funds created shorting stocks worldwide. But now the hedge funds know how to do it in a controlled way and we expect to see it happen again within a year. This market panic was not an economic factor. This market panic was planned using computers to carry it out. The socialist countries have now temporarily banned shorting.

We expect a rebound but higher than normal volatility for a while. We would take advantage of any 20+% percent type upward stock price spikes in individual stocks due to volatility. Things will only continually get worse for the world economies while liar-leftist Obama is in power.


American Economy-
Last week
MBA Mortgage Index 08/06 rose +21.7% from +7.1% last month. Excellent
Wholesale Inventories Jun increased 0.6% down from 1.8% last month. Improved
Treasury Budget deficit in Jul -$129.4B less than last month -$165.0B. Great reduction in deficit spending
Initial Claims 08/06 395K down from 400K ..very good
Continuing Claims 7/30 3688K down from 3730K ..very good
Trade Balance Jun -$53.1B up from -$50.2B ..we continue to keep the world humming
Retail Sales up in Jul 0.5% from a 0.1% increase in June.
Retail Sales ex-auto Jul up 0.5% 0.from no improvement in June.
Mich Sentiment Aug 54.9 way down from a low 63.7 in July
Monday
Empire NY Manufacturing Aug -7.70 vs -3.76 last month. Getting almost twice as bad
Net Long-Term TIC Flows Jun $3.7B a decline from $23.6B last month showing foreign investment dropping.
NAHB Housing Market Index Aug 15 stabilized at last at 15 Some good housing news for a change.

Today
Aug 16 8:30 AM Housing Starts Jul
Aug 16 8:30 AM Building Permits Jul
Aug 16 8:30 AM Export Prices ex-ag. Jul
Aug 16 8:30 AM Import Prices ex-oil Jul
Aug 16 9:15 AM Industrial Production Jul
Aug 16 9:15 AM Capacity Utilization Jul
This week
Aug 17 7:00 AM MBA Mortgage Index 08/13
Aug 17 8:30 AM PPI Jul
Aug 17 8:30 AM Core PPI Jul
Aug 17 10:30 AM Crude Inventories 08/13
Aug 18 8:30 AM Initial Claims 08/13
Aug 18 8:30 AM Continuing Claims 08/6
Aug 18 8:30 AM CPI Jul
Aug 18 8:30 AM Core CPI Jul
Aug 18 10:00 AM Existing Home Sales Jul
Aug 18 10:00 AM Philadelphia Fed Aug
Aug 18 10:00 AM Leading Indicators Jul

Market Outlook August 16, 2011
New data indicates housing will appear to improve because last year was extremely bad. Relatively speaking housing will begin to look better. We expect housing stocks will actually begin to do well as the banks are finally dealing with Obama’s and Barney Frank’s “liar loans” and free houses for Obama’s “chosen people” to wreck.

In America without liar-Obama we would be well into recovery. But even with Obama… things will appear to improve because Obama screwed things up extremely bad last year with continued liar-mortgages to his chosen few. The end to the home-buyer tax break hurt things badly a year ago. Therefore relatively speaking things will look much better in housing for a few months. The auto industry will look a lot worse though because liar-Obama last year threw money at that industry to fool people into thinking his socialism helped the auto industry when all he really did was bail out the unions that backed his election campaign.

You can see the VIX confirmed the capitulation and smaller second bounce and is now subsiding. We expect another test this year, probably in a month or two. Then we could see a few months of solid advances provided it looks like Obama will pull out as a candidate for president. We believe Obama knows he has been a lame duck already for a year and is pretending to run just so he will not be ignored by the liar-leftist media. Obama’s lunatic liar-leftist ideas are poison to the world economy. Obama’s vision for the automobile industry in ten years is mountains of worn out automobile batteries in dumps leaking toxic waste, polluting our supply of drinking water and killing polar bears and fish in record numbers. Spain’s green energy boom is now a toxic waste of stimulation funds and Obama modeled his plan after Spain’s plan.
http://finance.yahoo.com/q/bc?s=^VIX&t=6m&l=on&z=m&q=l&c=

We expect a normal advance now of about 50% of the recent decline. Last fall the market almost doubled what it lost in the May panic. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=5d&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

Recovery the past two years was one of Obama’s big lies as he continued to divide Americans and destroy the American economy. Click on the 5yr chart and see full effect of the slowdown in world dry shipments which shows Obama did nothing at all but destroy hope by forcing Obamacare for his indigent leisure class down the throats of working Americans. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were down last night. China down –0.7%, Hong Kong down –0.2%, India down –0.7, Seoul up 4.3%, and Japan up 0.2%.

European markets are down today by about -0.4% to -1.8% half way through their day.

American markets futures are down about 1.3% at 8:00 AM EST

It appears the decline double bottomed last week. Still we expect little net gain this year and next year unless Obamacare for his leisure class is declared unconstitutional and his regulations are cut way back closer to the Glass-Steagall Banking Act of 1933. Americans do not want USSR style Obamacare because it is just based on another Obama leftist lie. Socialist healthcare is far inferior to American healthcare. What is already killing Medicare is Obama’s leisure class entitlements to it. They already had free health care because American tradition always helps those in need even though no American ever was entitled to health care or Social Security unless they worked and paid into the systems. Obamacare is a liar-leftist act of stupidity and is a blank check to Obama’s leisure class. Obamacare must be declared unconstitutional or American becomes just another bankrupt socialist state with no incentives to help others by improving the human condition.