Mitt Romney won the Republican debate.

World markets
European stocks were up more than 2% yesterday .  European markets are up again today on news the unionized socialist countries may get the boot.

Merkel is under fire from some members of her own party for going too far in rescuing countries like Greece.

Horst Seehofer, the head of Merkel’s Bavarian sister party, told the Bild newspaper on Wednesday morning that a Greek exit from the Euro zone could not be ruled out. Germany's top court just imposed new limits on Berlin's future participation in Euro zone bailouts. Merkel said Europe faces long road to slash debts and she urged Europe to rethink its rulebook to ensure small countries like Greece could not put the entire 17-nation currency area at risk. Merkel said reopening he Lisbon Treaty should not be taboo.

"I'm convinced that this crisis, if a great crisis of the western world is to be avoided, cannot be fought with a 'carry on' attitude. We need a fundamental rethink." Merkel said the shared currency "cannot be allowed to fail and will not fail".

"It is quite a paradox that virtually all violations of EU rules, whether economic or environmental, lead to verdicts from the European Court of Justice, but that violations of the Stability and Growth Pact cannot be looked at by the court. We need to think about these issues," Merkel said.
Interest rates paid on debt by so-called peripheral eurozone countries — Greece, Italy and Spain — rose sharply. Greece now pays up to 18% on its national debt.

A survey of the services sector Monday showed a slowdown across the European continent for the fifth consecutive month. The purchasing managers' index for the eurozone showed the services sector was barely growing — unlike the sagging manufacturing sector.


World markets may have set their lows for now and in some cases they set double bottoms. China tests last year’s low. http://finance.yahoo.com/echarts?s=000001.SS+Interactive#chart1:symbol=000001.ss;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Germany resumes decline.
http://finance.yahoo.com/echarts?s=^GDAXI+Interactive#chart6:symbol=^gdaxi;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

The Swiss government and central bank talks about a possible target for the Swiss franc to halt its gains has failed and the Swiss franc is rising again. The Swiss market has not yet double bottomed and has a way to go.
http://finance.yahoo.com/echarts?s=^SSMI+Interactive#chart2:symbol=^ssmi;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Emerging markets also will fall further before they double bottom. http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy-
Last week
Productivity-Rev. Q2 -0.7% down from -0.3% Not good
Unit Labor Costs - Rev. Q2 3.3% up from 2.2% - Not good
ISM Index Aug 50.6 47.down from 50.9 - Not good
Construction Spending Jul -1.3% down from 0.2% Not good
Nonfarm Payrolls Aug 0K nothing compared with 117K last month. Good thing Obama has come back from Martha’s Vineyard.
Nonfarm Private Payrolls Aug 17K down from 154K jobs created last month
Unemployment Rate Aug 9.1% same as last week 9.1% -
Hourly Earnings Aug -0.1% down from 0.4% increase last month.
Average Workweek Aug 34.2 down slightly from 34.3 last month
ISM Services Aug rose to 53.3 from 52.7 the previous month an 11% gain in the service sector the largest American business sector.

Yesterday
MBA Mortgage Index 09/03 -4.9% up considerably from last month’s -9.6%
Fed's Beige Book Sep – Republican candidates indicated Bernacke would get fired when Americans fire Barking Obama.

This Week
Sep 8 8:30 AM Initial Claims 09/03
Sep 8 8:30 AM Continuing Claims 08/27
Sep 8 8:30 AM Trade Balance Jul
Sep 8 11:00 AM Crude Inventories 09/03
Sep 8 3:00 PM Consumer Credit Jul

Sep 9 10:00 AM Wholesale Inventories Jul

Market Outlook September 8 2011
Yesterday was a tremendous day for all the world markets. People are beginning to see a light after the Barking Obama tunnel and Greece. Today it will be a hard act to follow but early news is good and the rally is still only beginning.

Short sellers going to be panicking for a long time and are trying very hard to create fear. Insider buying and options distributions are now at a record levels. Before August insiders were sellers of their stock in their place of work. Now they are buying their own stocks.

There will be dancing in the streets of America and around the world if the Senate socialists are thrown out with Obama in 2012.

We expect the VIX to continue to decline as the panic of smaller investors subsides similar to after the flash crash of May 6, 2010
http://finance.yahoo.com/q/bc?s=^VIX&t=5y&l=on&z=m&q=l&c=

We expect a normal advance of up to at least 50% of the total August decline. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=5y&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

Obama’s continued to divide Americans, destroyed the American economy with socialism and corruption, and barked at Congress and now barks and at the increasing numbers of disappointed voters. But could the bulk shipments finally be getting ready to break out? See 1yr chart at:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were flat last night. China down -0.7%, Hong Kong down -0.7%, India up 0.6%, and Japan up 0.3%.

European markets are up today –0.1 TO 0.7% half way through their day.
.
American markets futures are down about -0.4% at 8:45 AM EST

See:
Obama and the Burden of Exceptionalism
Post-'60s liberals, with the president as their standard bearer, seek to make a virtue of decline.
By SHELBY STEELE
http://online.wsj.com/article/SB10001424053111904787404576532623176115558.html?mod=googlenews_wsj

Summary:
Clearly Americans expected exceptionalism from Obama who could have shown that America had achieved near perfect social mobility… not his assault on America's exceptionalism of scientific, economic and cultural preeminence.
American exceptionalism is, among other things, the result of a difficult rigor: the use of individual initiative as the engine of development within a society that strives to ensure individual freedom through the rule of law. Over time a society like this will become great. This is how—despite all our flagrant shortcomings and self-betrayals—America evolved into an exceptional nation.
Obama was elected to make a stretch toward exceptionalism. It should be held against him that he has done the direct opposite.