Obama is mired in absurdity: He seeks to trade the burdens of greatness for the relief of mediocrity.

Obama is mired in absurdity: He seeks to trade the burdens of greatness for the relief of mediocrity. See SHELBY STEELE’s article below.

Obama’s Job’s plan could wait two weeks until he got home from vacation and Martha’s Vineyard but Obama and GE/MSNBC/Pravda could not wait until after the next opposition candidate debate. Now it backfired and Obama will be on TV during the football kickoff event. But you will get a full analysis right here, all the Obama bullshit again.

In 2009, more than a dozen of Obama’s big government agents with automatic weapons invaded the Gibson factory in Nashville. The Obama Government seized guitars and a substantial amount of materials and records. To date, 1 year and 9 months later, no charges have been filed, yet the Obama gangster government agents still hold Gibson’s property. Gibson Guitar, a user of scarce woods for musical instruments, for years has allied itself with environmental groups to show it was serious about preserving forests. That doesn’t stop Obama and Holden from raiding them in a shakedown of small businesses to encourage contributions to his election campaign. Though no charges have been filed Obama besmirched Gibsoin once again alleging illegal imports of wood. This is not the first stupid Obama “Russian communist” gangster style raid. Gibson factories have been raided twice, most recently last week, by federal agents who say ebony exported from India to Gibson was "fraudulently" labeled in violation of Indian export law. Where is Obama’s evidence though? And why does Obama harass Gibson for what Indian exporters are doing… isn’t that India’s job? Is Obama trying to say India doesn’t want to sell wood any more and Obama is working for India now? Is Gibson too competitive with knock-offs from India and China and Obama wants to put the small business out of business? Obama would make a good Russian Putin but he is just an American moron of unknown origin.
http://online.wsj.com/article/SB10001424053111903895904576542942027859286.html

Deutsche Telekom AG hasn’t prepared any alternative scenarios if Obama shakes them down for contributions… a management board member said today. Managers led by Chief Executive Officer Rene Obermann were meeting with Deutsche Telekom’s supervisory board yesterday when they heard Obama had Holden arrange to have them sued to block the deal. Obermann, who had previously demonstrated confidence that the transaction would be approved, was taken by surprise, said a person familiar with the matter, asking not to be identified because the meeting was a private call for contributions.

It appears the shorts miscalculated and are starting to cover themselves as corporations see this rare opportunity to buy back their stock at a substantial discount. Corporate purchases could wipe out short sellers. Uncovered short sellers could face 500% losses to unlimited losses. Warren Buffett said he would/will buy $5Billion in Bank of America yesterday and the stock rose 10% on thenews. What happens when he actually does buy the BAC stock? The multiplier effect could be 20.

Short positions are at a record high right now and as soon as volume declines again they will get whipped out in the rally. When that happens the covering of short positions will become a significant boost to buying volume. Many companies are likely to buy back their shares at a time when price-to-earnings ratios are low, providing a trigger for a rally of 10% or half the recent 20% decline. We plan to sell when we get a sell signal. It is entirely possible that the rally could reach the recent highs depending on how fast U.S. companies buy back shares since they have high cash ratios and buy backs enormously increase the rise in earnings per share. Warren Buffet said he would invest $5Billion in Bank of America. We are just seeing the corporate money ready to flow into the market and wipe out all the short sellers thus starting another rally. As prices fall it becomes more possible for corporations to take their firms private. Then short sellers could go –500% in the hole.

We need to stop the illegal government handouts to Obama’s chosen people because when all the stupid and lazy people in Greece, America, and the rest of the world are given no more free tickets and must actually work for a living like the rest of us, we can get out of the debt crisis because the welfare state is the debt crisis.

World Markets:
Germany shows strength in family owned businesses that are taking the lead snatching up opportunities at bargain prices and growing their employment.

Russian socialists use police power to beat the last pound of flesh off creative and hard working Russians. Russian officers armed with assault rifles Wednesday raided the Moscow offices of the British Petroleum, carrying out a type of ritual armed search of the white-collar premises. BP’s company has had such problems here for years, its share price often nudges up or down in response to socialist economic police raids or the arrests of employees. Separately, a Russian socialist gangster group sued BP in the Siberian court for damages alleging that BP executives serving on the board of directors of the TNK-BP subsidiary violated their fiduciary obligation to pay gangsters protection money. A similar lawsuit, also filed in a remote Siberian court, in Omsk, crippled the Norwegian telecommunications company Telenor’s business in Russia for years, ending in a large payoff settlement last year. Sometimes, police wielding guns force analysts and economists onto the floors of their offices destroying any sense that Moscow offers law, order, much less justice. Heavy-handed Putin gangster tactics are the norm. In February, masked, armed Putin gangsters raided Deutsche Bank’s main office in Moscow, looking for documents related to a commercial mortgage of a Putin friend. In November, police armed with automatic weapons raided a bank belonging to the billionaire Aleksander Y. Lebedev, of the national airline Aeroflot. Mr. Lebedev said he was sitting in his office when men in commando outfits wearing masks burst in, looking for documents. Another American businessman had all his corporation assets stolen and his Russian lawyer was arrested and tortured to death for taking his case to court. People throughout Eastern Europe complain about the Russian gangsters who still live in their villages and control the streets at night. They are protected by Putin’s gangsters who would invade if the gangsters were deported or imprisoned.

Japan to invest $2Billion in consolidation of display technology manufacturing in Japan.

Memory manufacturers are seeing a price collapse across the world.


World markets may have set most of their lows for now and in some cases they set double bottoms. China
http://finance.yahoo.com/echarts?s=^SSMI+Interactive#chart1:symbol=^ssmi;range=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Germany falters
http://finance.yahoo.com/echarts?s=^GDAXI+Interactive#chart2:symbol=^gdaxi;range=3m;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#chart1:symbol=^ssmi;range=3m;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=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy-
Last week
Personal Income Jul up 0.3% better than last months 0.1%
Personal Spending Jul up 0.8% much better than last months -0.2%
PCE Prices - Core Jul 0.2% not deflationary like last months 0.1%
Pending Home Sales Jun -1.3% not good last months 2.4%
Case-Shiller 20-city Index Jun -4.52% like last months -4.51%
Consumer Confidence Aug 44.5 far down from 59.5 (an outlier or cross-over??)
http://www.martincapital.com/index.php?page=graph&view=consumer_confidence
FED minutes support continued easing.
MBA Mortgage application Index 08/27 -9.6% vs -2.4% last month
Challenger Job Cuts Aug 47.0% vs 59.4%
ADP Employment Change Aug 91K down from 114K
Chicago PMI Aug 56.5 down from 58.8
Factory Orders Jul 2.4% up a lot from -0.8%
Crude Inventories 08/27 5.281M up from -2.213M

Yesterday
Initial Claims 08/27 409K down from 417K Good
Continuing Claims 08/20 3735K up from 3641K Not good
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

This Week
Sep 2 8:30 AM Nonfarm Payrolls Aug - 75K 73K 117K -
Sep 2 8:30 AM Nonfarm Private Payrolls Aug - 100K 110K 154K -
Sep 2 8:30 AM Unemployment Rate Aug - 9.2% 9.1% 9.1% -
Sep 2 8:30 AM Hourly Earnings Aug - 0.2% 0.2% 0.4% -
Sep 2 8:30 AM Average Workweek Aug

Market Outlook September 2 2011
A short squeeze is still forming. Short sellers are in a panic and are trying to create fear. But some are beginning to cover themselves and that plus corporation stock buy-backs are underlying the market rally. Insider buying and options distributions are now at a record level. Before August insiders were sellers of their stock in their place of work.

Structural issues have stalled world growth. A welfare dependent voting block now elects socialists and communists across the free world not just China and Russia. Governments became too large in order to manage welfare, social programs, and government worker unions. Social Security has been diverted to welfare. Government investment in business has been diverted to welfare via affirmative action. Government in Freddie and Fannie has transferred $Trillions via affirmative action to people with no visible work ethic or means of personal support. We are an Obama welfare state and he will suggest more government hiring. The only program of government jobs that does work in the short run is to put long term unemployed and welfare recipients into to work programs sweeping streets, cutting grass, cleaning rivers and forests, shoveling snow etc as was done under Clinton for welfare reform.

The market rally should be somewhere between 50% and 90% of the way back to the recent spring highs. We expect a short squeeze to begin as investor volume dries up and corporations find buying their own stock or even other corporations is too good to pass up. The short squeeze will start on it own and then others will jump in so as not to miss the opportunity.

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 now of up to at least 50% of the total decline. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=6m&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

Economic recovery the past two years was one of Obama’s big lies as he continued to divide Americans, destroyed the American economy with socialism and corruption, and barked at Congress and the increasing numbers of disappointed voters. But could the bulk shipments finally be getting ready to break out? See 3yr and 5yr charts at:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were down last night. China down 1.1%, Hong Kong down 1.8%, India up 0.9%, and Japan down 1.2%.

European markets are down today again -1.5% to -2.7% half way through their day.

American markets futures are down about -0.8% at 7 AM EST

Corporations have over $500 billion in cash to invest and it does not look like they will invest in jobs as long as Obama’s socialized medicine and new taxes loom. Remember if the money multiplier effect is 20:1(the money changes hands 20 times) that $500billion becomes $10Trillion so it would only take 10% of the corporations to buy back and to put $1trillion into the stock market


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 pre-eminence.

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.

But Obama is mired in absurdity: He seeks to trade the burdens of greatness for the relief of mediocrity. But when greatness fades, when a great nation contracts to a middling place in the world, then the world in fact no longer knocks on its door. Obama effectively makes a virtue of decline—as if Obama can redeem America only by making her a lesser nation.

Since the '60s the left has enfeebled our public education system even as our wealth has expanded. Moral and cultural relativism now obscure individual responsibility.

Do we move ahead as Obama decrees, by receding—by letting go of American values, so that a creeping leftist mediocrity begins to spare us the burdens of greatness?

As a president, Barrack Obama has been a force for mediocrity. He has banked more on the hopeless interventions of government than on the exceptionalism of the people. His greatest weakness as a president is a limp confidence in his countrymen. He is afraid to ask difficult things of his constituency like “get off your ass and get a job.”

Obama was elected to make a stretch toward exceptionalism. It should be held against him that he has done the direct opposite.

Mr. Steele is a senior fellow at Stanford University's Hoover Institution. Among his books is "White Guilt" (Harper/Collins, 2007).