With such corruption even among “friendly” Asian nations, investments in Asia could be a 1998 type disaster now.

US Judge Jed Rakoff has been a frequent critic of the SEC. Last month he refused to approve the SEC’s $285m settlement with Citigroup over its sale of a mortgage-related security, citing the SEC’s policy to allow companies to settle allegations without admitting or denying wrongdoing. The SEC sued only two Citigroup officials and not others in 2009 for failing to disclose nearly $40bn in subprime mortgages. The fine was about 0.7% of what they stole from the taxpayers who bailed them out.

Socialists say the problem is between the rich and the poor. Most Americans now know the problem is really between the:
1. educated and/or competent and/or hard working people vs. the
2. uneducated and/or incompetent and/or lazy.
It is up to people to decide how they would like to live. Normal people can chose either to be any one or more of educated and/or competent and/or hard working people. But if someone chooses all three of the irresponsible behaviors (to be uneducated, and to be incompetent for any job, and to be lazy) they then end up very poor indeed in any society and it is entirely their own doing.

World markets
The death of the insane N. Korean leader made the Asian world nervous but now seems to be good for the world markets. There is now news is that S. Korea attacks American companies that try to invest there. Lone Star Funds, a Dallas-based buyout firm spent about $3 billion and five years entangled by S. Korean courts, regulators and corrupt lawmakers over the potential profits on its investment. It was kangaroo court convicted of stock manipulation and two attempts to cash out were undone by lawsuits. Lone Star agreed this month to sell out for about a $3 billion loss which is almost a 50% loss from what they paid for their S. Korean investment in 2007. With such corruption even among “friendly” Asian nations, investments in Asia could be a 1998 type disaster now.

Hong Kong rents, fell last quarter for the first time since mid-2009, are continuing their fall and banks and hedge funds are dumping such investments amid the threat of an Asian financial crisis like the late 1990’s.
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Indian stocks are ending 2011 with the worst decline among the world’s largest equity markets, and analysts say the worst is still just around the corner for India.

China’s stock market is also now breaking down below the lows of July 2010. That means the tide that carries all Asian ships is falling and we can expect many new shipwrecks on the China reefs because this could be the first major disruption of China’s credit and their first major Asian stock market panic, world wide. It could also be China’s first venture into personal liberty and a much more prosperous future. Chinese people in villages are demonstrating for liberty against their government that is driving them off of traditional farmlands.

World markets are failing to break out some on the second and third times at resistance levels.
http://finance.yahoo.com/intlindices?e=asia

China testing recent lows. http://finance.yahoo.com/echarts?s=000001.SS+Interactive#chart1:symbol=000001.ss;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Germany testing resistance level: Choose 2 or 5 years
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart2:symbol=^gdaxi;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on

The Swiss testing resistance level. 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 triple bounce but still testing resistance level.
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 have hope that the Obama Regime will be thrown out of office so Americans can change back to an honest free enterprise system. Obama administration corruption rivals that of Greece and Italy.

Last week
The good
Treasury Budget Nov -$137 down from -$150.4 last month, -good
Export Prices ex-ag. Nov -0.1% not dropping as much -1.5% still good
Import Prices ex-oil Nov -0.2% stll dropping -0.2% still ok
Crude Inventories 12/10 -1.932M dropped from 1.336M but prices are falling anyway- good
PPI Nov 0.3% 0.1% 0.1% -0.3% -
Empire Manufacturing Dec 9.53 up from 0.61
Core PPI Nov 0.1% 0.0% 0.1% 0.0% -
Capacity Utilization Nov 77.8% still good and no change 77.8%
Philadelphia Fed Dec 10.3 up from 3.60
Friday
CPI Nov 0.0% is better than -0.1% last month
Core CPI Nov up 0.2% is less deflationary than 0.1% last month

The bad
Retail Sales Nov 0.2% down from October’s 0.5% -bad
Retail Sales ex-auto Nov 0.2% down from October’s 0.6% -bad
Business Inventories Oct 0.8% surged up from October’s 0.0% -bad
MBA Mortgage Index 12/10 4.1% down from 12.8% seasonal but not good
Initial Claims 12/10 366K still very high but reported down from 381K
Continuing Claims 12/03 3603K up from 3583K
Current Account Balance Q3 -$110.3B still very bad -$118.0B -
Net Long-Term TIC Flows Oct $4.8B a drastic drop in foreign investment from $68.6B
Industrial Production Nov -0.2% a big decline from 0.7%

Today
Dec 19 10:00 AM NAHB Housing Market Index Dec

This Week
Dec 20 8:30 AM Housing Starts Nov
Dec 20 8:30 AM Building Permits Nov

Dec 21 7:00 AM MBA Mortgage Index 12/17
Dec 21 10:00 AM Existing Home Sales Nov
Dec 21 10:30 AM Crude Inventories 12/17

Dec 22 8:30 AM Initial Claims 12/17
Dec 22 8:30 AM Continuing Claims 12/10
Dec 22 8:30 AM GDP - Third Estimate Q3
Dec 22 8:30 AM GDP Deflator - Third Estimate Q3
Dec 22 9:55 AM Michigan Sentiment - Final Dec
Dec 22 10:00 AM Leading Indicators Nov
Dec 22 10:00 AM FHFA Housing Price Index Oct

Dec 23 8:30 AM Durable Orders Nov
Dec 23 8:30 AM Durable Goods Orders -ex Transportation Dec
Dec 23 8:30 AM Personal Income Nov
Dec 23 8:30 AM Personal Spending Nov
Dec 23 8:30 AM PCE Prices - Core Nov
Dec 23 10:00 AM New Home Sales Nov


Market outlook December 19, 2011

American stocks are still well above this year’s lows. Jim Cramer has his follower’s at DEFCON 2, which is one level from nuclear attack readiness. In addition investors are getting back into the stock market as “safe” sovereign bonds wrack up losses. That is bullish but it is too late to buy and we should be ready to take profits. Now is when people are taking losses and the first week of January will be when many begin taking profits for tax purposes.

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 in 2012 or even later in 2015 if he is re-elected. Six Fannie and Freddie democrat-socialist corrupt appointment have now been charged with fraud. Newt Gingrich rises in the polls even after it is disclosed he tool $1.5 million for his advice to Fannie and Freddie not to give liar loans. We advised the same thing but we did it at no charge to taxpayers.
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 better. Sales are up because consumers have been refinancing dropping their monthly expenses. http://www.martincapital.com/index.php?page=graph&view=unemployment

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 had 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

Growth in bulk shipments in November was down and still at less than 20% of the bulk trade level that existed before Obama declared the USA was in a depression in one of his 2007 campaign speeches. Obama and Dodd caused the fear that triggered the only American bank run of the recent Obama/Dodd depression. http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stock markets were down last night. China down –0.3%, Hong Kong down –1.2%, India down –0.7%, S. Korea down –3.4% and Japan down -1.3%.

European markets are up today in a range +0.3% to +1.2% half way through their day.

American market futures are up about +0.6% at 7:30 AM EST. It is an unreliable predictor.