Edward DeMarco, the acting head of FHFA, said Freddie and Fannie executives were too incompetent to handle their work and spent $millions to get quali

Edward DeMarco, the acting head of FHFA, said Freddie and Fannie executives were too incompetent to handle their work and spent $millions to get qualified and experienced counsel in addition to each taking base salaries of $900,000 annually.

They stand to make as much as $6 million a year after receiving their deferred pay and bonuses which taxpayers are not supposed to know about until they get them so they don’t count yet. At least that is what they think. The executives’ compensation packages jumped 40% as soon as the Senator Barney Frank had the government take over the firms over in 2008, according to the Federal Housing Finance Agency, which regulates the two firms. Newt Gingrich was paid Newt $1.6 million for his advice. This further informs the public how stupid and corrupt the Obama administration is to hire and pay Newt and other politicians on the take. When asked at the debate what he did to earn a $300,000 payment in 2006, the former speaker said he “offered them advice on precisely what they didn’t do,” and warned the company that its lending practices were “insane.” Newt doesn't like to talk about the $100,000 he owes Tiffanies for jewelry he bought for someone he will not disclose.

Boone Pickens Wednesday on MSNBC said Obama people are the dumbest people who ever came to town and the Obama Energy director CHU is an idiot saying we will have the energy plan in place within 30 yrs. Canada will now just sell its cheap oil to Red China because Obama and his administration are so stupid.


World markets

China is expected to report tomorrow that housing prices in the cities have stalled since July. If this is a bubble pop then China could enter its first recession since it experimented with free enterprise.

An Indian airline was hijacked by its crew, which collected about $16000 from the passengers claiming they ran out of gas half way to India.

European banks are swapping worthless assets at full value to keep the illusion that they have real cash. The USA banks did the same thing before the implosion by swapping worthless defaulting mortgage based paper. By trading worthless paper that way they do not have to recognize the true loss.

Spain sold 3.56 billion euros ($4.8 billion) of a new 10-year benchmark at an average yield of 6.975 %, the highest for Spain since the euro’s creation. French debt jumped about 0.4%.

Ten German government-owned Landesbank’s banks had their senior debt and deposit ratings cut by Moody’s because it said “there is now a lower likelihood” that the lenders would get government support.

European shares slid again into the red yesterday after the Bank of England raised the specter that Europe's debt crisis is spreading far outside the continent's periphery. They want a bail out from the smiling morons in the Obama administration.

China bounced. 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 rises: Choose 2 or 5 years
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart1:symbol=^gdaxi;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

The Swiss government and central bank has a target for the Swiss franc to halt its rise. Choose 2 or 5 years http://finance.yahoo.com/echarts?s=%5ESSMI+Interactive#chart1:symbol=^ssmi;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Emerging markets show resiliency.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy
If cash becomes king it will be because the world today runs on credit not cash. If the credit system goes bust there will not be enough cash to buy things and prices will fall. Nobody will want gold… they will want cash. That is why all the credit Bernanke has put into the system does not have the same effect as printing money. It is only credit that could dry up in a week. Many conservative investors are being scammed by gold traders and doomsday survivalists.

PPI Oct -0.3% down sharply from 0.8% deflationary
Core PPI Oct 0.0% down from 0.2% deflationary
Retail Sales Oct 0.5% down from 1.1% not good
Retail Sales ex-auto Oct 0.6% flat from 0.6% not great
Empire Manufacturing Nov 0.61 up significantly from -8.48 very good
Business Inventories Sep 0.0% dropped from 0.5% very good

Yesterday
MBA Mortgage Index 11/12 -10.0% down from 10.3% very bad
CPI Oct -0.1% down from 0.3% deflation
Core CPI Oct 0.1% constant at 0.1% no inflation
Net long-term TIC Flows Sep $68.6B up from $57.9B good foreign investment in US
Industrial Production Oct 0.7% up from 0.2% very positive
Capacity Utilization Oct 77.8% up 77.4% good sign
NAHB Housing Market Index Nov 20 18 flat 18 flat lined again
Crude Inventories 11/12 -1.056M drop again -1.370M good when inventories are lower

Today
Nov 17 8:30 AM Initial Claims 11/12
Nov 17 8:30 AM Continuing Claims 11/05
Nov 17 8:30 AM Housing Starts Oct
Nov 17 8:30 AM Building Permits Oct
Nov 17 10:00 AM Philadelphia Fed Nov

This Week
Nov 18 10:00 AM Leading Indicators Oct

Market Outlook November 17 2011

The US and the world economy will not likely slip back into a recession until early next year under current trends in Obama incompetence.

We could see a few percent decline here before the advance resumes. But complacency has not set in. We are now climbing the well-known bull market wall of fear. There is still just not much short seller fear at this point. We have not had the shorts squeezed out of the market yet. Look how low the VIX has to go before the market top is hit! A level as low as 20 would indicate complacency and the end of the bull market.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=m&q=l&c=

We advanced over 60% of the total recent decline and predict we could possibly have as much as 90% recovery. But realize that as the upside potential is approached, then the downside risk exceeds the upside potential.
See:
http://finance.yahoo.com/echarts?s=^NYA+Interactive#chart3:symbol=^nya;range=5y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Demand from Asia should be sufficient for 6% increase volumes even if the Euro crisis leads to a collapse in European sales, per Bremerhaven BLG analysis:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were down slightly last night. China down –0.2%, Hong Kong down –0.8%, India down –1.9%, and Japan up 0.2%.

European markets are down again today in a range -1% to –2.3 % half way through their day.

American market futures are down about –0.7% at 7:30 AM EST. They are an unreliable predictor.