“Screw the taxpayers to buy the corrupt politicians,” is Obama’s campaign contribution slogan.

Heard on the street
Democrats and Liberals are keeping really quiet about this and Obama stayed away from Wisconsin on his latest Campaign Tour even though he was right next door. Wisconsin and New Jersey are the last places he wants to talk about! Remember the violent and disgusting leftist defections in the Wisconsin capitol over Gov. Scott Walker doing away with collective bargaining for Teachers unions? The results are in. Many school districts went from up to $400,000 deficits to up to $1,500,000 surpluses as a result. They are even hiring new teachers, not firing like the leftists said would happen. The insurance company that provided all the so-called "benefits" to the teachers was an insurance company owned and operated by the teacher's union that siphoned off the taxpayers money to pay the premiums (not the teachers). The insurance company inflated annual costs and became the most expensive insurance company in the state. Then the company donated the millions of embezzled taxpayer dollars to their favorite socialist-democrat politicians who, when they got elected and guaranteed the union's highway robbery theft. In other words, the insurance company was a corrupted "pass through" of Wisconsin taxpayer money directly to the leftist democrat politicians. This is corruption in its worst form… the kind Obama loves the most. “Screw the taxpayers to buy the corrupt politicians,” is Obama’s campaign contribution slogan. This racket is going on in every single State that allows collective state employee bargaining with leftist arbitration of disagreements. No wonder Obama wants card check like they invented in the USSR. Only in the USSR the corrupt workers party carried red flags not union cards and the honest workers were sent to Siberia. Communism is still the goal of the banana republic tag team of Hugo Chavez and Obama. Now the State of Wisconsin is free to put the insurance contract out for bids and behold, they have saved so much money it has turned deficits into surpluses. As a result, none of the teachers had to be laid off, everyone got a raise, etc., etc., and the taxpayers of Wisconsin don't have to pay more taxes to fund the corrupt socialist push to take away American liberties such as our right to keep the fruits of our labor.

Machinists asked the National Labor Relations Board to drop a complaint against the Boeing Co. (BA) after union members approved a new contract that increases production in Seattle and averts the risk of a third straight strike. Obama is now destroying America’s ability to compete in all the aerospace markets. The EU, China, and Russia are doing well under Obama’s aerospace dictatorship.

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 who owns US Treasuries with a 50% haircut. 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.

World markets
China’s central bank plans to set up $300 billion in funds to invest overseas.

At the ECB meeting in Frankfurt European, EU leaders pledged that the national central banks will channel 200 billion euros ($268 billion) through the International Monetary Fund to fight the debt crisis. Of course the USA funds most of the IMF money and the EU now controls the International Monetary Fund.

Singapore faces a collapse in housing prices as Asian chaos grows.

Japan’s trade balance fades as lower manufacturing costs and junk from China undermines Japan’s sales. It is reminiscent of the 1950’s when Japanese junk undermined the American and European economies. Junk is very costly because it usually causes damage to other dependent products and is a waste of time and energy.

Brazil’s November inflation increased to a 6.2% annual rate.

China’s recession risk increased significantly.

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
The US economy may not dip as Americans increasingly hope that the Obama Regime will be thrown out of office so Americans can change back to an honest free enterprise system.

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.

This Week
So far
The bad
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
Dec 7 10:30 AM Crude Inventories 12/03 1.336M down from 3.932M means higher fuel prices and fossil fuel stock recovery.
Dec 7 3:00 PM Consumer Credit Oct $7.6B up slightly from $7.4B reported last month is mostly due to student debt.

The good
MBA Mortgage Index 12/03 12.8% a tremendous improvement from -11.7% last month.

Yesterday
Initial Claims 12/03 381K down from 402K
Continuing Claims 11/26 3583K down from 3740K as unemployment checks expire after two years. Obama’s socialist union supporters still refuse to allow unemployed Americans to take community service jobs that allow them to earn a minimum wage. The socialist unions say it destroys the welfare state voting block to put them back in the work force the way Gingrich and Clinton did under 1995 welfare reform. Democrats’ campaign to win back control of the U.S. House, assailed Republicans’ for not extending the payroll tax break and three years of unemployment checks saying it will backfire politically and help Democrats by growing the welfare voting block. Remember the Obama administration’s communist slogan, “Every crisis is an opportunity to advance the welfare state.”
Wholesale Inventories Oct rose 1.6% after declining -0.1% … very bad!

Today
Dec 9 8:30 AM Trade Balance Oct
Dec 9 9:55 AM Mich Sentiment Dec


Market outlook December 9, 2011

Stocks still hover near recent highs. The US and the world economy may not slip back into a recession in spite of Obama incompetence. Real estate has possibly turned the corner but will not take off until Americans are confident that Obama and his leftist supporters will be thrown out of office.

The 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.

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

When it comes to jobs, Obama has to manipulate the government statistics just like all 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. 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 down last night. China down -0.6%, Hong Kong down –2.7%, India down –1.7%, and Japan down –1.5%.

European markets are mixed today in a range –1.8% to +2% half way through their day. Only Greece and Belgium are down.

American market futures are up about 0.8% at 7:30 AM EST. They are an unreliable predictor.