According to a report by the Institute on Taxation and Economic Policy, GE’s president, Jeffrey Immelt, not only exported the highest percentage of jobs, GE runs the Indian firm “Infotech” which was set up to take away American Engineering Jobs, and GE has paid no income taxes. Obama’s only corporate advisor is Jeffrey Immelt. All of Obama’s other advisors are leftist lunatics.
Obama does not realize that what the EU is going through is what Obama is setting the USA up to go through in about 7 years and that is to default on debt and hurt everyone with a 50% haircut who owns US Treasuries. The USA needs to throw out the socialist Democrats who believe in spending beyond our means on giving welfare instead of an education in American work ethics.
Patrick Caddell, who was a pollster to former President Jimmy Carter, and Douglas Schoen, who worked for Bill Clinton, both said Obama should abandon his re-election effort in favor of Hilary Clinton, in an opinion piece in the Nov. 21 edition of the Wall Street Journal. They both said that Hillary Clinton is “the only leader capable of uniting the country.”
World markets
Greek Prime Minister Lucas Papademos received parliamentary approval for a financial plan that aims to nearly halve next year’s deficit shortfall and possibly allow Greece to remain a member of the EU. The pressure on debtors has declined significantly.
China’s recession risk increased significantly.
Geithner risks USA economy and our children’s future to bail out Europe with US taxpayer dollars. China will benefit from doing nothing to help other countries as they dump inferior products on the world. Chinese computer batteries are said to sell for half the price of American batteries but last 10% the US battery life.
German industrial production rose for the first time in three months as the debt crisis threatens to tip Germany’s large economy into recession.
China double 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 bounced: 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 bounced. 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 double bounce.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefine
American Economy
Holiday consumer spending is up about 5% in the USA and all income bands predict they will purchase much more in 2012 (10 to 40% more). Yet most Americans think Obama is doing a terrible job because he does nothing that helps the American pie grow. Instead American education is run by union leftists who are trying to educate people to pay them higher teacher salaries when the teachers should instead be teaching students how to think intelligently and get off their duffs and make something of themselves. Today’s teachers inspire laziness and incompetence and give students the sense that there is no value in the American values that made America great. Today’s public schools and public employees need an education in the American work ethic so they know how to teach the lazy underclass that work is useful and grows the pie even if they have to start with minimum wage because they got a terrible education due to incompetent leftist teachers in all levels of American education. The lazy and incompetent American government workers need a haircut not a full pension when they have worked only 10 years. They often get state pensions after just 10 years and then want to retire! At least that is true in New England.
Last week
The good
Consumer Confidence Nov 56.0 up sharply from 39.8
FHFA Housing Price Index Sep +0.9% great improvement from -0.1%
Construction Spending Oct 0.8% improved from 0.2%
ISM Index Nov 52.7 good inc in manufacturing from 50.8
Pending Home Sales Oct 10.4% -great improvement from -4.60%
Chicago PMI Nov 62.6 manufacturing pick up from 58.4
Crude Inventories 11/26 3.932M inventory good for lower prices -6.219M
The Bad
Auto Sales Dec too bad for Obama to admit 4.27M
Truck Sales Dec too bad for Obama to admit A 5.84M
Hourly Earnings Nov -0.1% down from 0.2%
ADP Employment Change Nov 206K fewer got jobs down from 110K
Initial Claims 11/26 402K more loosing jobs from 393K
Continuing Claims 11/19 3740K more unemployed from 3691K
Productivity-Rev. Q3 2.3% down from 3.1%
New Home Sales Oct 307K down from 313K
Challenger Job Cuts Nov -12.8% unchanged 12.6%
The indifferent
Average Workweek Nov 34.3 no change from 34.3
Nonfarm Payrolls Nov 120K a few more jobs created 80K amid massive layoffs
Nonfarm Private Payrolls Nov 140K private jobs created 104K
MBA Mortgage Index 11/26 winter slowdown from -1.2%
Unit Labor Costs Q3 -2.5% unchanged -2.4%
Case-Shiller 20-city Index Sep -3.6% down less than -3.80%
This Week
So far
Factory Orders in Oct, -0.4%, down significantly from last month’s +0.3%
ISM Service Sector Nov, 52.0 down from 52.9 last month
Today
Dec 7 7:00 AM MBA Mortgage Index 12/03
Dec 7 10:30 AM Crude Inventories 12/03
Dec 7 3:00 PM Consumer Credit Oct
Coming
Dec 8 8:30 AM Initial Claims 12/03
Dec 8 8:30 AM Continuing Claims 11/26
Dec 8 10:00 AM Wholesale Inventories Oct
Dec 9 8:30 AM Trade Balance Oct
Dec 9 9:55 AM Mich Sentiment Dec
The Obama lies
Unemployment Rate Nov 8.6% Obama communist style lies say unemployment down from 9.0%. That is because Obama thinks he will not get re-elected if unemployment is greater than 9%
Market outlook December 7, 2011
Stocks still hover near recent highs. The US and the world economy will not likely slip back into a recession until early next year under current trends in Obama incompetence. Real estate has bottomed out but will not take off until 2013 provided Obama and his leftist supporters are all thrown out of office.
Market vector is predicting the same type of short term rally we have been talking about: Select stock index data, then stock index daily, then the market index you want.
http://marketvector.com/data/index.htm
There was tremendous cash flow into the market the last two weeks. The coming short squeeze will probably come within 60 days and it is good to take profits in stocks with good runs and buy into stocks and sectors/indexes that are low and that will benefit from a good year end run-up in sales. The sales gains will be reported in January and will probably result in the peak of this intermediate trend rally. But Obama is an economic bummer for the USA and will continue that way because he is an socialist to the very core.
The housing market has stabilized but is still near the bottom. Many are predicting a real estate come back next year.
http://www.martincapital.com/index.php?page=graph&view=permits_and_construction
Today Obama had one of his idiot-economists arguing against three businessmen on Squawk Box trying to claim that the bounce in 2009 was due to Obama not the bounce that every comes with every recession. Obama knows how to create corruption with his green spending and is pushing for an obscene $1Billion Presidential campaign fund, but he is not too clever when it comes to creating new jobs such as building the oil pipeline from Canada that would create heavy industry jobs and cut American production costs making the USA more competitive. When it comes to jobs, Obama manipulates the government statistics just like communists do to pretend things are getting better.
http://www.martincapital.com/index.php?page=graph&view=unemployment
We are at the critical upside resistance level now and it needs a breakout so the advance resumes and triggers a short squeeze that could rum stocks up close to previous highs of this year. That will be the time to get back into cash. Complacency has not set in at all yet. 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 once over 60% of the total recent decline and predict we could possibly have as much as 95% recovery. Market Vector agrees with us. But realize that as the upside potential is approached, then the downside risk exceeds the upside potential and it is time to lighten up. View 6 mos. See: http://finance.yahoo.com/echarts?s=^NYA+Interactive#chart1:symbol=^nya;range=6m;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Demand from Asia should be sufficient for increased volumes even if the Euro crisis leads to a collapse in European sales, per Bremerhaven BLG analysis: Insert into explorer.
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Stock market update:
Asian Stock markets were up last night. China up 0.3%, Hong Kong up 1.6%, India up 0.4%, and Japan up 1.7%.
European markets are up today in a range 0% to 1.8% half way through their day.
American market futures are up about 0.4% at 8:00 AM EST. They are an unreliable predictor.
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