If Obama is not allowed to further cripple the US economy with corruption, we believe America will not have a double dip recession.

If Obama is not allowed to further cripple the US economy with Solyndra and other types of corruption, we believe America will not have a double dip recession. Obama is finally getting out of the way of international trade after three years of job killing union socialism resistance.

French Senate elected a Socialist as speaker for the first time since the 1960’s. Of course for a time back then the French and the Italians also had their Communist party controlling many of the southern regions of their countries. Stupidity has such a short memory. The stupid leftists even gave America the Obama job killer. And Obama chose GE’s French socialist, Jeffrey Immelt to be his Czar of job exports.

House Speaker John Boehner (R-Ohio), House Republican Leader Eric Cantor (R-Va.), Senate Minority Leader Mitch McConnell (R-Ky.) and his deputy, Sen. Jon Kyl (R-Ariz.)sent the letter to the Fed on September 19, the day before its latest policy meeting. The letter pleaded that Fed members”resist further extraordinary intervention in the U.S. economy." They specifically objected to further use of an earlier Fed policy known as "quantitative easing," also designed to lower interest rates with securities purchases. They said, “Such steps may erode the already-weakened U.S. dollar or promote more borrowing by overleveraged consumers,” they wrote. “To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery.”

The word is out that Obama will not run for president again and Hilary will take his place. That is the only possibility left that will allow Socialist-Democrats to hold onto the presidency. Everyone now knows that Obama is a dunce without his teleprompters and he is full of crap on just about everything he says. In fact we did a Google Search on, “Obama crap”, and got “About 79,500,000 results” in 0.22 seconds search time. See:
http://www.youtube.com/watch?v=RRRy-QlQyUw

http://www.youtube.com/watch?v=L3S09QPlsg8

http://www.google.com/#hl=en&cp=10&gs_id=4&xhr=t&q=Obama+crap&pf=p&sclient=psy-ab&site=&source=hp&pbx=1&oq=Obama+crap&aq=0&aqi=g1g-v3&aql=&gs_sm=&gs_upl=&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=298cfbc9b6f1239a&biw=914&bih=844

World markets
Oil plunged 17% in 3Q, the worst quarter since '08

Germany muddles on as the leader of Europe muddling.

We expect another world wide bull market now that could last three to six months until it becomes apparent that the communist-socialist contagion in Europe is once again out of control. But that realization could be delayed until the warm weather when the union dead beats come out to throw rocks again. Actually Greece may not get any EU funding until the end of October so that may create another rock throwing Greek cave-man uprising this month.


American Economy
Last week summary
The housing market in America turned favorable in September.
MBA Mortgage Purchase Index 09/10 up +6.3% after being down -4.9% last month. Great news again for housing.
MBA Mortgage Index 09/17 up 0.6% after up +6.3% last month. Very good for housing.
Existing Home Sales Aug up to 5.03M from 4.67M last month. Very good for housing.
FHFA Housing Price Index Jul rose 0.8% following a 0.9% improvement. Great news.
Case-Shiller 20-city Index Jul sales improved 0.41% relative to last year.
MBA Mortgage Index 09/24 shot up +9.3% compared with a 0.6% improvement last month. Housing continues to improve now.
Initial Claims 09/24 declined to 391K from 423K last week, very good
GDP - Third Estimate Q2 1.3% raised from previous estimate of 1.0%
Pending Home Sales Aug 88.6 is 7.7 percent above August 2010 when it stood at only 82.3. The data reflects contracts not closings.

Friday
Personal Income Aug -0.1% declined from 0.3% in July, deflationary
Personal Spending Aug 0.2% declined from 0.8% in July, 2.4% annual, low inflation
PCE Prices - Core Aug 0.1% declined from 0.2% in July, 1.2$ low price inflation
Chicago PMI Sep 60.4 rose from 56.5 in July –good production number
Michigan Sentiment - Final Sep 59.4 up from 57.8 in July –good turnaround

Gold is down 20% in September and the US dollar is again the best horse in the glue factory.

ISM Index Sep manufacturing rose 2% to 51.6 from 50.6 in August
Construction Spending Aug rose 1.4% after retreating -1.3% in August
Auto/truck Sales Sep Chrysler sales climbed 27 percent, GM deliveries rose 20 percent, and Ford sales increased 9 percent the companies said in separate statements.

This week
Oct 4 10:00 AM Factory Orders Aug

Oct 5 7:00 AM MBA Mortgage Index 10/01
Oct 5 7:30 AM Challenger Job Cuts Sep
Oct 5 8:15 AM ADP Employment Change Sep -
Oct 5 10:00 AM ISM Services Sep
Oct 5 10:30 AM Crude Inventories 10/01

Oct 6 8:30 AM Initial Claims 10/01
Oct 6 8:30 AM Continuing Claims 09/24

Oct 7 8:30 AM Nonfarm Payrolls Sep
Oct 7 8:30 AM Nonfarm Private Payrolls Sep
Oct 7 8:30 AM Unemployment Rate Sep
Oct 7 8:30 AM Hourly Earnings Sep
Oct 7 8:30 AM Average Workweek Sep
Oct 7 10:00 AM Wholesale Inventories Aug
Oct 7 3:00 PM Consumer Credit Aug

Evidence continues to mount that the American housing crisis has hit bottom and the housing industry is now improving.

Market Outlook October 3 2011
Warren Buffett said Berkshire has shunned buybacks for four decades. That has ended and Buffett said that it would repurchase shares for as much as 110 percent of their book value because the stock is undervalued. Stock buybacks put a floor under the stock market by making shares scarce as corporations take them back.

The good news in the USA is that housing has bottomed and is now recovering. Construction spending appears to have bottomed out, and sales and sales prices are rising again.

The trading range of equities tested the resistance levels of 2010 and they held. We still expect a normal advance of up to at least 50% of the total recent decline. But then it will be time to lighten up on equities again. The neckline is looking more like a head and shoulders than like a bull market correction. It is not a head-and-shoulders sell signal until or if this recent neckline is broken perhaps in three to six months. If it becomes a head and shoulder formation it means the market could collapse again in a year. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=2y&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

We see a pick up in bulk trade which seems to have bottomed and is improving. Congress needs to fight Obama and stop the high deficit spending that amounts now to socialist vote buying. If Obama is not allowed to further cripple the US economy we believe America will not have a double dip recession. See 1yr chart at:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were down last night. China closed, Hong Kong down –4.4%, India down -1.8%, Taiwan down –2.9%, and Japan down -1.8%.

European markets are down today in a range –1.0% to –2.5% half way through their day.
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American market futures are down –0.2% to –0.6% at 7:30AM EST. US market futures rarely have any predictive accuracy.