A high risk of an imminent stock market crash now exists as socialists plan to tap investors with new fees to stabilize markets with losses.

A high risk of an imminent stock market crash now exists as socialists plan to tap investors with new fees to stabilize markets with losses. Socialists like Obama know how to stabilize by flat lining the pulse of the economy. No pulse no chance of instability!

The SEC will empower “Share holders” like democrat State Treasurers to be active and capable of unseating corporate executives and putting in socialists to redistribute corporate profits away from shareholders to the “less fortunate.” Bank of America and GM are two successful coups so far for the socialists.

Despite Obama’s claims of ending the Great Depression that he introduced during his campaign, the closely watched Baltic Dry Index continues in free fall. The leading economic indicator has wiped out more than 60% of its value since we told you a month ago.

“This president’s misguided policies made these tough times last longer,” Romney said.

The Federal Reserve stated just last week in its FOMC statement, that it thinks the outlook for the economy is so negative it intends to keep the Fed Funds Rate at near zero “at least through late 2014”, rather than its previous target of mid-2013? Yet the president tells us things are getting better and unemployment is dropping. Who do we believe? Obviously not the president because the unemployed are still unemployed but now many get no benefits and have to join the Underground economy. In Greece it is estimated that 80% of the private economy is now underground. In southern Italy it is estimated to be close to 50%. In socialist countries that do not torture you or throw you in the Gulag

The percentage of each past president's cabinet who had worked in the real-life private business sectors prior to their appointment to the cabinet.
T. Roosevelt.................... 38%
Taft.................................. 40%
Wilson ........................... 52%
Harding........................... 49%
Coolidge......................... 48%
Hoover............................ 42%
F. Roosevelt................... 50%
Truman........................... 50%
Eisenhower................ .... 57%
Kennedy......................... 30%
Johnson.......................... 47%
Nixon.............................. 53%
Ford................................ 42%
Carter............................. 32%
Reagan........................... 56%
GH Bush......................... 51%
Clinton .......................... 39%
GW Bush........................ 55%
Obama..................... 8% duhh
This helps to explain the competency level of this administration: only 8% of them have ever really worked.

“America needs a president who can fix the economy because he understands the economy, and I do, and I will,” Romney said.

World markets
Federal Reserve chief Ben Bernanke said the central bank would do everything it can to prevent socialist Europe's financial crisis from damaging the U.S. economy.

Greek tragedy for bond investors dominates the headlines. Olivier Blanchard, chief IMF economist said he expects private holders of Greek debt to accept a "very large" reduction on the value of their bonds. Technically, when the Greek bond investors accept a total loss there is no default because it was ok with them.

Indonesia’s economy grew last year at the fastest pace since before the Asian financial collapse of 1996 as rising domestic spending counters a collapse in Indonesia’s exports caused by Europe’s debt crisis.

“Japan’s consumer-electronics makers are in a total breakdown,” said Masamitsu Ohki, a fund manager at Stats Investment Management Co., a Tokyo-based hedge fund. Japan’s biggest makers of phones, televisions and chips say they’ll lose about $17 billion this year

Witold Bahrke, a senior strategist at PFA Pension A/S in Copenhagen, which manages $45 billion said about Greece. “We can no longer completely exclude extreme scenarios such as a disorderly default or -- a bit further down the line -- an exit from the euro area. Investors have become fairly resilient towards news from Greece, but we are seeing small signs negative sentiment is taking over after the positive mood dominating markets recently.”
Forcing Greek bondholders is telling bondholders to start dumping Portugal’s and Italy’s bonds before they get 70% hair cuts (70% defaults). Portugal’s bond-market rout suggests investors are concerned about a Greek-style reduction in debt repayments.

Sharp, Japan’s largest maker of LCD panels, forecast its worst annual loss since its founding a century ago, with its president saying exporting is “nearly impossible” with the current demand.

Germany’s largest bank, Deutsche Bank AG, said fourth-quarter profit fell 76 percent as Europe’s debt crisis cut trading and the company wrote down losses.

The USA and the EU stock markets posted their highest gains in over 15 years while the highest proportion of EU companies on record are missing profit estimates. “I am not optimistic about Hong Kong’s export performance in the first half of this year,” said John Tsang. China’s market continues to slump.

Singapore Airlines’ profit tumbled 53% on rising competition and costs.

Asian markets (especially China) have failed to break out some on the second and third times at resistance levels. China’s stocks could fall 50% from here if Obama’s announced world wide “Great Depression” spreads there too.
http://finance.yahoo.com/q/ta?s=000001.SS&t=2y&l=on&z=l&q=l&p=e200%2Ce100&a=&c=

Germany broke through the resistance levels: 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 broke through the resistance levels. Choose 2 or 5 years http://finance.yahoo.com/echarts?s=%5ESSMI+Interactive#chart1:symbol=^ssmi;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Emerging markets show strength. Brazil broke through
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

American Economy

New York sued Bank of America, JPMorgan and Wells Fargo in state court in Brooklyn as liberals continue to redistribute wealth to their election campaign coffers. In election years the liberals sue companies that do not give their candidates enough campaign payola. Obama told business he wants $1 billion for his re-election campaign and so far American business has coughed up less than $300,000,000.

The Obama community activists consider adopting Japan’s socialist plan to allow negative interest rates at government debt auctions.

Romney said the president should “be apologizing to America,” describing him as a community activist who “demonizes and denigrates almost every sector of our economy.”

Bernanke plans to start weaning USA Banks off borrowing Fed Funds at zero or negative interest rates. This would cut bank revenues by 30% to 40%.

Boston Scientific Corp. (BSX), the second-biggest cardiac-device maker, fourth-quarter earnings plummeted 55 percent.

This week
Feb 7 3:00 PM Consumer Credit Dec
Feb 8 7:00 AM MBA Mortgage Index 02/04
Feb 8 10:30 AM Crude Inventories 02/04 -
Feb 9 8:30 AM Initial Claims 02/04
Feb 9 8:30 AM Continuing Claims 01/28
Feb 9 10:00 AM Wholesale Inventories Dec
Feb 10 8:30 AM Trade Balance Dec
Feb 10 9:55 AM Mich Sentiment Feb
Feb 10 2:00 PM Treasury Budget Jan

Market outlook February 7, 2012

Market looks ready to plunge.

The VIX indicates extreme complacency now. A sharp computer sell-off could end the current rally any time now and trigger stop-losses with huge losses.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=2y&l=on&z=m&q=l&c=

Bulk shipments are now lower than any time since Obama took office, even lower the Obama lows of 2008. It collapsed to the lowest world bulk trade level that existed since Obama started the Obama Great Depression in one of his 2007-2008 campaign speeches to defeat his opponent. It is now less than 5% of the international trade that existed just before Obama was elected. In the past, a precipitous decline in this index, set off alarms around the financial world because it implies supply exceeds demand and something has to give.
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stock markets were down last night. China down –1.7%, Hong Kong down -0.1%, India down -0.5%, and Japan down -0.1%

European markets are down today in a range -0.2% to -1% half way through their day. Greece is an outlier today, up the moment.

American market futures are flat about -0.2% in after hour trading at 7:30 AM EST.

We estimate the current level peak will be soon in a head-and-shoulders sell signal.