If you translate idiot Ben Bernanke's latest comments, his message is plain as day -- rewards from the Fed's rate reduction efforts, in all forms, are dwindling. Princeton University economist Alan Blinder, a former Fed vice chairman, echoed it and said “The basic problem for the Fed is it’s used all the heavy artillery a long time ago and it’s down to relatively weak weapons. The problem with the socialists is they will not reduce their bungling government bureaucracy and allow taxes/deficits to be reduced. That is because rule of the majority rapidly goes to the stupid and lazy as more people refuse to work for a reasonable wage and hard workers decide to quit and take their money and retire to John Gault’s safe havens. Ultimately when there is no food on the table the socialists will vote for a government that supports free enterprise again. Then people have the right to the fruits of their labor and government does not confiscate what workers make and redistribute it to the stupid and lazy socialist-voting block.

Apple Inc.’s is heading towards a disastrous next quarter. The coming iPhone map application will include Yelp Inc.’s “check-in” feature to let users broadcast their whereabouts to friends and enemies. Nothing exciting is coming except for the comparison with the excellent quarter Steve Jobs had a year ago. Steve did so much better because he wanted to release his best work while he was alive. He did not leave anything new or exciting on the books when he died so Apple will have a few bad years now until they find an inventive entrepreneur like Steve Jobs was. That may never be possible.


The Rasmussen reports daily Presidential Tracking Poll for Saturday shows Mitt Romney attracting 48% of the vote, while President Obama earns 43%. Six percent (6%) prefer some other candidate, and four percent (4%) are undecided. Romney leads by 11 among men, and the candidates are even among women. Currently only 23% of the nation's voters Strongly approve of the way that Obama is performing his role as president. Forty-five percent (45%) strongly disapprove, giving him a Presidential Approval Index rating of –22.

http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll


55% Want U.S. Supreme Court to Uphold Arizona’s tough Immigration Law

52% Want U.S. Supreme Court to Overturn Obama’s Health Scare Law

54% Still Favor Repeal of Obama’s Health Scare Law

51% See Federal Government As Threat to Their Rights

63% Say Obama is wrong, U.S. Society is Fair and Decent



Obama Backers Use Race as Alibi for Ebbing Support

As he falls in the polls, and his presumed fundraising advantage seems about to become a disadvantage, it's alibi time for his backers. His problem, they say, is that some voters don't like him because he's black. Or they don't like his policies because they don't like having a black president. So, you see if you don't like Obamascare, it's not because it threatens to take away your health insurance, or to deny coverage for some treatments. It's because you don't like black people. See:

http://www.rasmussenreports.com/public_content/political_commentary/commentary_by_michael_barone/obama_backers_use_race_as_alibi_for_ebbing_support

Switzerland issues every household a gun! Switzerland's government trains every adult and they issue each a rifle. Switzerland has the lowest gun related crime rate of any civilized country in the world! The American Constitution allows the population to be armed not just to hunt but for armed insurrection against any political demagogue who tries to take away our rights under the American constitution. Every demagogue tries to change their constitution to take away the citizens arms and to give themselves perpetual terms of office.



World market this week

Prime Minister Erdogan of Turkey said they might annihilate Syrian military forces approaching Turkey’s border after the shooting down of a Turkish aircraft by Syria last week.

Europe and Obama are still clueless. They still have not gotten the message that they need to cut the government payrolls so real people can work and the blood sucker unions can take a hike. Fifty years ago it was illegal for fire fighters, police, army, and government workers to form unions. In most European countries even the military has a union. Once during a world war part of the French Army went on strike and as punishment every 10th soldier in the unit was shot on the site as punishment.

Moody's downgraded the long-term debt and deposit ratings for another 28 Spanish banks, following on the heels of a cut to Spain's sovereign rating to just above junk status earlier this month. Spain is asking now for another $125Billion just like the one they got a month ago.

France and Italy are becoming like two pestering economic ticks urging Germany to give them a little more blood to suck. German Chancellor Angela Merkel hardened her resistance to euro-area debt sharing, raising concern the summit this week will fail to tame the region’s crisis.

The euro fell to the lowest level in more than a week against the yen as Spanish and Italian borrowing costs rose at debt sales amid concern a European Union summit this week will fail to solve the sovereign debt crisis.
It is time to begin buying emerging markets on bad news. The emerging markets, whose economies grew more than four-fold in the past decade, have posted their biggest declines since at 1998. The real, ruble and rupee have weakened the most among developing-nation currencies and the yuan has depreciated more than in any other period since its 1994 devaluation. International corporation profit forecasts are falling due to the exchange rates.

Bloomberg belatedly reports that investors have been fleeing the four biggest emerging markets, and Brazil’s consumer default rate rose to the highest level since the recession began in 2009. Prices for Russian oil exports hit an 18-month low, India’s budget deficit widened and Chinese home prices have slumped. But this has happened over the last two years while many advised that the BRICs were good investments. Just look at China the one everyone else said to buy two years ago:

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#symbol=000001.ss;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Now we say that it is time to selectively invest a small amount in the Emerging markets again as others panic and react to what we have seen and told you for two years. While other stocks peaked and slumped this year we see China may have bottomed out (though still to be confirmed):

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#symbol=000001.ss;range=6m;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Emerging markets.
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

Germany is showing strength: 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 are showing strength. 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

The world crisis will continue as long as a socialist and a former member of small communist leftist groups is the president of the USA.


American Economy

Generally the USA economic indicators were poor the last two weeks. The polls indicate that while Mitt Romney is the leading presidential candidate, most voters still think Obama will be re-elected and hence they think the economy will not recover in the next four years.

Yesterday's more new homes in a housing glut was terrible news. New home Sales in May was at 369K up from 343K last month. New home building is causing the housing market to stay depressed. With more than a full year’s worth of existing homes and few new young employed buyers why does Obama think more new house building is a sign of recovery? It is a sign of morons running the American government. Stupid Obama needs to stop government financing incentives for new homes until there is no longer an overhang of vacant houses burning in American cities. Socialists always get things ass-backwards.



This Week

Jun 26 9:00 AM Case-Shiller 20-city Index Apr –

Jun 26 10:00 AM Consumer Confidence Jun -

Jun 27 7:00 AM MBA Mortgage Index 06/23

Jun 27 8:30 AM Durable Orders May

Jun 27 8:30 AM Durable Orders -ex Transportation May

Jun 27 10:00 AM Pending Home Sales May

Jun 27 10:30 AM Crude Inventories 06/23

Jun 28 8:30 AM Initial Claims 06/23

Jun 28 8:30 AM Continuing Claims 06/16

Jun 28 8:30 AM GDP - Third Estimate Q1

Jun 28 8:30 AM GDP Deflator - Third Estimate Q1

Jun 29 8:30 AM Personal Income May

Jun 29 8:30 AM Personal Spending May

Jun 29 8:30 AM PCE Prices - Core May

Jun 29 9:45 AM Chicago PMI Jun

Jun 29 9:55 AM Michigan Sentiment - Final Jun



Market outlook June 26, 2012

A sharp decline may continue and test the lows. If the markets break out, then a much larger move could occur. Caution is advised, as it could be a bear or bull trap when it occurs.

The imminent US Supreme Court decision on Obama's health care morass is expected this week, two years after Obama signed into law an act to insure 32 million indigent Americans already given free hospital services. It also prevents coverage from being refused on the basis of patients' medical histories such as from high risk San Francisco lifestyles. However, if you drink too much soda and get too fat you are allowed to be penalized. At the heart of the “Unaffordable Care Act,” dubbed "Obamascares US" lies the individual mandate that requires every US citizen to take out health insurance or be subject to a fine. Constitutionists argue that Congress overstepped its constitutional prerogatives in requiring individuals to buy insurance, while the Obama administration contends that the move is vital to destroying the insurance industry and federalizing healthcare. The nine Supreme Court justices held six hours of oral arguments over three days in late March, the longest time allotted to debating a single issue in more than 45 years. We expect the American Supreme Court will reject nationalized medicine as the EU has continued to reject it for the EU. “Genius” Obama lies or is just stupid whenever he says Europe has nationalized medicine. Britain, France, Germany, etc all have their own systems just as California, Massachusetts and New York have their own systems. Likewise “Genius Obama” lies or is just stupid when he says Europe has a national educational system. The states of the EU can’t even agree on one language. Of course the elite liberal proletariat like “Genius Obama” are too stupid to know any facts about the real world of socialism like Hitler, Stalin, Pol Pot, Mao, Castro, Chavez, and the other “liberal geniuses” that have preceded Obama.

The market volume rose on Friday’s advance but the previous rally did not indicate an upward breakout is immanent. It is likely that the high Court will be split and will throw “Obamascare” back to Congress where nothing will get done until Obama is out of office. In such a case we expect a flat economy until November. We are taking opportunities but quickly taking profits. We are short-term investing, not long-term investing right now. The market is poised to quickly drop as much as 10%. There could even be a panic sell-off soon.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=ytd;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;


The Dow Theory Industrials and Rails sell signal of August 2, 2011 still holds. We expect the “Walker Rally” to run out of steam if Romney does not open up his lead. However the Walker rally could last a month just as it is with some good news from the EU.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=5y;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

Obama is such an incompetent boob; a deep depression can only be prevented if this “proletariat genius” is not re-elected.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=2y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined

The VIX says the market is again complacent and dangerous.

http://finance.yahoo.com/q/bc?s=%5EVIX&t=2y&l=on&z=m&q=l&c=

Baltic Dry Index resumes the decline. The emerging markets may now advance if it rebounds.

http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:

Asian markets were down last night. China down –0.1%, Hong Kong up 0.5%, Singapore down -0.3%, Taiwan down –0.4%, Japan down –0.8%.

European markets were down half way through their day in a range of +0.3% to –1.8%

American market futures are up about 0.3% in after hour trading at 7 AM EST.