Again, some one needs to tell nouveau socialists that using taxpayer funds to help smear opponents and to gain votes is ostentatious political corruption. But political corruption just gets hotter. At least a dozen private-equity firms have been subpoenaed by New York's attorney general in a probe intended to try to smear Mitt Romney by including Bane just because Mitt Romney helped found Bane more than 20 years ago. Squawk Box said the subpoenas came out long ago but were just leaked to the leftist press. Carried Interest, the practice being investigated, is the biggest loophole Warren Buffet uses but he is not under investigation because he only contributed to the Democratic Party. No companies involving active Democrats are to be investigated. Previous investigations of the practice said they were legal.

Four years ago, Barrack Obama pledged to promote a green revolution, saying the government would back alternative-energy technologies that could create 5 million jobs and free the U.S. from a dependence on overseas oil tyrants. Yet our transformation -- driven by fracking -- isn’t green. It is attached by environmentalists, and has no connection to the president’s plans. But because Ohio is a swing state that Obama needs, Obama has made it easier to frack in Ohio and Bloomberg ran headlines today, "Ohio’s Gas-Fracking Boom Seen Aiding Obama in Swing State."

Clearly Obama Solyndra corruption, fast and furious gun-running socialism, and Obama’s Goldman Sachs crony capitalism will only end in further collapse of American production, collapse of small businesses and finally the Obama round up of the hated 2% of wealthy people who will not give everything to the 49% who pay no income taxes but vote for Obama socialism.

The New England jobless rate rose 0.3% in July

According to Bloomberg reports, Bank of America Corp. and Wells Fargo & Co. and others have contributed $20 million toward the cost of the Democratic National Convention, after Obama claimed he wouldn’t accept their dirty corporate bank money.

U.S. manufacturing teetered between growth and contraction in August, according to a survey of economists.

Bullion also was seen climbing as the euro rose as much as 0.3 percent against the dollar. Gold and the greenback tend to move inversely with the euro.

Bullard said the Fed is still awaiting more data before taking action

Our warriors who took out Bin Laden are taking political action to replace their commander in chief because he has loose lips that put them and all Americans at risk. They had taken Bin Laden’s computer with the addresses of his commanders and Obama leaked everything so they could all get away.

The movie documentary, "2016" is very popular and is said to be a truthful presentation of the life of Obama and his goal to "Downsize America."

"This pathetic president spent his entire time dividing the nation." "He has taken all the wealth entrepreneurs created and calls it greed." He is pathetic." Kenneth Langone said

According to the Washington Times, Obama is getting the moron vote.
http://www.washingtontimes.com/news/2012/aug/22/obamas-looking-for-the-moron-vote/

Mitt Romney would drop government spending to 20% of the GDP as it was under Reagan. Only by controlling the spending will America get the debt and the percentage of freeloaders under control. We need a Constitutional limit on taxes. There were no income taxes of any kind until more than 100 years after the constitution was written.

The CBS News poll is finally converging with what the more unbiased Rasmussen poll has been saying all along. However the morons are digging in because they are becoming dependent on the Obama gravy train.

Rasmussen reports daily Presidential Tracking Poll for Wednesday shows Mitt Romney attracting support from 48% of voters nationwide, while President Obama earns the vote from 44%.http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

World market this week
Treasuries declined, snapping a two-day advance, on speculation that the European Central Bank will announce measures soon to ease the euro region’s three-year debt crisis.

Gold, trading near a five-month high, was seen rising in London as economic reports fuel the case for more central-bank stimulus that will stoke demand for the metal. Euro-area manufacturing shrank more than first estimated in August, a report showed yesterday indicating more inflation will be used to stem the depression in jobgrowth.

China Eastern Airlines the nation’s second-largest carrier by passengers, will increase capacity in the second half by 10 percent as it adds new planes and boosts international services.

The Euro currency rose again making EU products less price competitive.

The European Union’s rating outlook was cut to negative by Moody’s Investors Service, reflecting the negative outlook on the Aaa ratings of Germany, France, the U.K. and the Netherlands that account for about 45 percent of the EU’s budget revenue.

A Spanish town in southern Andalusia, is negotiating with unions to fire the top 13 percent of the 2,000 government workers who comprise 80 percent of its budget. 25% of Spain’s workforce is now jobless and more than two-thirds off the nation’s budget must still be cut.

Emerging markets will continue to suffer unless Obama is given the heave-ho. The American markets are essential to the recovery of the world.
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

Emerging market composite indicates continued breaking down through the recent lows.http://finance.yahoo.com/echarts?s=%5EGSPTSE+Interactive#symbol=^gsptse;range=5y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;


German stocks are faltering below the recent high that is now close to the March level which is still below the high of 2011 and 2012: 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 Market is testing moving averages. It gave a sell signal last year. It is at a new high for 2012 but below the 2011 high.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

American Economy
The market continues to test old resistance levels. If the "American Anti-Moron" backlash wins the election or just shows evidence it will win, then stocks will soar in America and unemployment will begin to tumble down.

The Obama QE3 Ponzi scheme continues to destabilize the American economy and Draghi wants Germany to do it for the EU and destroy the future of German children and grandchildren like Obama is doing to future American children. A cash crunch is continuing among American homeowners. Cash is locked up in fixed assets and falling home prices now is hitting the vast majority of Americans who took out home equity loans. Once the bond market collapses -70% all trade and economic exchange will collapse because the free world runs on credit cards not cash and the banks will be insolvent because they hold unstable American treasuries. The world governments are running out of money for their social nets.

Last Week
Case-Shiller 20-city Index Jun 0.5% much improved from -0.7% but CT is down 12.9% from last year.

Aug 28 10:00 AM Consumer Confidence Aug 60.6 a huge drop from 65.9 as Obama’s moron economy goes nowhere.

MBA Mortgage Index 08/25 -4.3% bad again after -7.4% -

GDP - Second Estimate Q2 1.7% still poor after 1.5% -

GDP Deflator - Second Estimate Q2 1.6% still says the GDP increase is due to inflation1.6% not real growth

Pending Home Sales Jul 2.4% improved from -1.4%

Crude Inventories 08/25 3.778M improved from -5.412M

Initial Claims 08/25 374K up from 372K

Continuing Claims 08/18 3316K constant 3317K

Personal Income Jul 0.3% down from 0.5%

Personal Spending Jul 0.4% down from 0.5%

http://www.martincapital.com/index.php?page=graph&view=income

PCE Prices - Core Jul 0.0% flat from 0.2%

Friday
Chicago PMI Aug 53.0 manufacturing down from 53.7

Michigan Sentiment - Final Aug 74.3 recovered most of last month’s loss 73.6

http://www.martincapital.com/index.php?page=graph&view=consumer_sentiment

Factory Orders Jul 2.8% incorrect because they reported the analyst estimate and is more Obama nonsense
http://www.martincapital.com/index.php?page=graph&view=factory_orders

Today
Sep 4 10:00 AM ISM Index Aug

Sep 4 10:00 AM Construction Spending Jul

Sep 4 2:00 PM Auto Sales Aug - NA NA 5.0M

Sep 4 2:00 PM Truck Sales Aug

This Week
Sep 5 7:00 AM MBA Mortgage Index 09/01

Sep 5 8:30 AM Productivity-Rev. Q2

Sep 5 8:30 AM Unit Labor Costs - Rev Q2

Sep 6 7:30 AM Challenger Job Cuts Aug

Sep 6 8:15 AM ADP Employment Change Aug

Sep 6 8:30 AM Initial Claims 09/01

Sep 6 8:30 AM Continuing Claims 08/25

Sep 6 10:00 AM ISM Services Aug

Sep 6 11:00 AM Crude Inventories 09/01

Sep 7 8:30 AM Nonfarm Payrolls Aug

Sep 7 8:30 AM Nonfarm Private Payrolls Aug

Sep 7 8:30 AM Unemployment Rate Aug

Sep 7 8:30 AM Hourly Earnings Aug

Sep 7 8:30 AM Average Workweek Aug

Market outlook Sept 4, 2012
Today the market is looking up after the Republican convention. It is time to get ready to invest again if the market pulls back. The S&P stopped at its upside resistance level set in March. Still no buy signals.

Markets fell yesterday in anticipation that Bernanke is wasting everyone’s time and his Ponzi scheme is an enabler of more socialist debt. This is the quiet before the storm with the VIX under 14 and extreme complacency. Most of Europe takes all of August as a vacation so it is a lost month every year. September reality is coming home. The socialist myth has evaporated and the morons hold their convention next week and the world gets to hear why the next generation of morons needs subsidized free sex more than scholarships.

There still has been no buy signal. The stock market hit old highs and failed to break out. Obama likes to say the market has risen since the morons took office but the truth is the market collapsed when the morons held their 2008 convention but fell the most when the morons were elected.

People forget that the DJI is not by itself the famous stock market indicator. The DJR must confirm the DJI for there to be a buy signal or sell signal. The DJI and DJR confirmed a sell signal together in August 2011and the DJR remains confirming that sell signal today. The DJI is the last "safe" place bulls go to reduce risk before the entire stock market collapses. Therefore the DJI is biased bullish and needs the DJR for balance. The DJ Rails continues to say sell even as people seek the false security of the DJ Industrials. The Divergence you see is the classic symptom of the Dow theory bull’s trap.
http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=6m;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

12,000 Federal workers are reported getting government pensions exceeding $100,000/yr for life.

The NYSE is much more representative of the US economy than are the DOW indices. Examine the last 5 years of the NYSE. It shows that Obama may be taking America into a profoundly deeper depression breaking 2009 lows if he is re-elected.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=5y;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. The Rails failed again to meet even the last shoulder of the head and shoulder sell signal.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;

The market sell signal is also seen in 3-month market cyclic data. Notice that yesterday wasn’t even a breakout.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 is rising? The low VIX normally precedes a sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end. The driving force this year is the election and whether the morons win or lose.http://finance.yahoo.com/q/bc?s=%5EVIX&t=2y&l=on&z=l&q=l&c=

The Baltic Dry Index says world trade is now at a depression low. Getting even worse.http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:
Asian markets were down again last night hitting new lows. China down –0.8%, Hong Kong down –0.7%, India up 0.3, Japan down –0.1%.

European markets are down half way through their day in a range of -0.3% to -1%.

American market futures are down at about -0.1% in after-hour trading at 8 AM EST. This indicator does not statistically correlate with anything.