Jan 30 The US rate of homeownership is now at a 20year low in spite of the Senate libtard Obama-Dodd-Frank liar loan initiative to increase American homeownership by lowering home mortgage qualifications and making the acceptance of applicant fraud socially-acceptable in the case of the poor and minorities. The so-called Holder Justice Department sued realtors and banks for discrimination if they refused too many applicants who were a default risk. Honest business persons were embarrassed, sued, and defamed when they tried to act intelligently and did not grant high risk mortgages. When Ken Lewis the president of Bank of America resisted the government forced acquisition of the corrupt Countrywide firm he was subsequently forced out by the pressure from the Libtards who exerted pressure even through their state employee pension fund stock ownership. Thanks to new libtard policies the housing market has collapsed again in spite of libtard quantitative easing which is slowly easing the entire world into a Libtard deflationary spiral. Such a spiral can only lead to a Libtard Great Depression if we do not replace Libtards in all levels of the US government bureaucracy. The FBI has warned about the Libtard liar-loan fraud since 2004 but the Libtards in the Senate know that stopping liar-loans would hurt turnout of their voter base.

http://www.businessinsider.com/only-lying-lenders-made-liars-loans-2011-3

http://www.wsj.com/articles/homeowner-rate-falls-to-a-level-seen-in-94-1422592057

http://www.bloomberg.com/news/articles/2014-10-28/u-s-homeownership-rate-falls-to-lowest-since-early-1995

 

Libtards in government are the cause of the free world economies heading over a cliff.  Libtards even use government funds to give their voter base free stuff like phones and income with negative taxes.  Many people now chose to vote socialist and not have to work or pay taxes and they therefore are lowering the unemployment rate for socialist Libtards to brag about.

 

After the first Liar-loan housing collapse, Obama-Holder still sued certain banks for discrimination again because the banks used prudence and had stopped making higher risk loans.   Libtards see the US housing bubble and collapse as a good socialist way to redistribute wealth.  

http://stopforeclosurefraud.com/2012/09/17/wsj-holders-justice-department-sues-a-bank-for-prudent-lending-yes-for-making-safe-loans-not-coutrywide-loans/

http://www.aei.org/publication/us-homeownership-rate-falls-to-a-17-year-low-of-65-3-in-q3-as-homeownership-bubble-continues-to-deflate/

 

The American housing market is tanking as banks are seeing a large uptick in risky loans and as oil and other commodity prices plummet weakening their credit markets.  Case-Shiller 20-city Index for Nov was down again.   The January MBA Mortgage Index stood at -3.2% down from +14.2% last month.  Pending Home Sales in Dec were down -3.7% from +0.8% in November.  The Wall Street Journal warned that the Obama administration policies are about to create another mortgage meltdown.

Senators Dodd, Frank and Obama set up Fannie and Freddie as Big-Government agencies to shield banks from a mortgage liar loan meltdown and ultimately hold the liar loans.  Private banks and realtors became simply the middlemen for the “Big Government agencies” which were supposed to make it possible for every American to own a home.  But Goldman and others made derivatives of the worthless liar loans spreading the risk to investors.  Now some of the worthless liar loans back some of the Quantitative Easing.  Obama still has not foreclosed on all the Liar Loans.  Now of course Obama wants every American to have a free useless libtard education too.  That is key to libtard policies and gives Libtards teaching positions.  The Obama-Dodd-Frank liar loans led to the 2008 mortgage meltdown that Obama said was on Bush’s watch even though Obama-Dodd-Frank cause the problem and took credit for the booming 2006 housing market when deadbeats were buying their liar-loan homes.  Now the WSJ is warning that Obama is steering the USA toward yet another mortgage meltdown.

http://www.wsj.com/articles/edward-pinto-building-toward-another-mortgage-meltdown-1422489618

 

The EU is going to try a short spell of their version of Quantitative Easing (flooding their economies with cash.   That was what the USA was supposed to do but Obama/Yellen have ruined the American economy by not letting the private economy take over when the banking crisis was over.   The FED has not stopped flooding the stock markets with cash.  Now Obama has impoverished the working class, destroyed much of the middle class and enriched all the rich political donors that loved his socialist government low interest cash.  The Wall Street Journal says Obama/Yellen hurt 95% of American households giving out cheap money like free candy and cell phones to the richest 5%.

http://www.wsj.com/articles/how-a-two-tier-economy-is-reshaping-the-u-s-marketplace-1422502201

Today the Obama administration released a ridiculously optimistic unemployment report that even the liberal NBC economic commentators said was unbelievable.  It claimed the rate of increase in unemployment was as low as under Regan and Clinton.  The number is too stupid and embarrassingly low to give the light of day.
Yesterday, the cream of the crop DJI average gave a sell signal with the breakdown of the 65 dma resistance level and a succession of declining highs.  The broadest indicator, the NYSE, gave a more massive sell signal last October.  The DJIA gave a market cash flow indicator breakdown a week ago.  It looks like a challenge of the 200 dma will be coming soon.

Jan 27  Soon more and more shrewd investors will soon be going into more investments outside the stock market or possibly beginning to short the market.  As we have said the truth about value does not come out until a correction occurs, and then the story gets worse and worse until below a certain point the owners and employees know their company is a good investment and they invest in their own companies again.  Any manager who uses the corporation cash to buy its stock at the highs knows he is hurting the corporation down the road.  It is better to use the cash to buy after the stock market correction in over in 12 to 18 months from now.  Then the cash can launch the stock recovery.

Now that the last quarter is over the administration once again lowers the level of the old data so that next report can be increased by the amount the previous report was lowered.  That prevents the data from getting completely ridiculous and few people go back to check and discover the manipulation because they expect American leaders to be truthful.  Now a libtard will say there is nothing wrong with the data revisions.  But anyone with a brain who understands statistics knows that statistical errors are neutral.  The positive corrections must not exceed the negative corrections.  A libtard administration does not know that.  

Remember how great Obama said the fourth quarter was?  Well now that it is the first quarter he has dropped those fourth quarter numbers to make the first quarter show better results again. 

Durable Orders for Dec were down -3.4%

Durable Goods -ex transportation for Dec were down -0.8%    

It has now been disclosed that Obama exchanged an American army deserter for the four 911 al Qaeda commanders that Obama released to Qatar.

Consumer sentiment has risen since the Libtards lost the Senate but it will take a libtard-free government to turn around the American economy and bring sanity and honesty back to the American government and expel the present fearful and loathing government.

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

Jan 26  In October the broadest stock indicator, the NYSE gave a neckline breakdown sell signal followed by descending tops.  The sell signal for the more accurate NYSE Market Cash flow index was much clearer.  We indicated last October that the market appeared to be in the early stage of a bear market similar to the early stage in 2007 a full year before the liar loan derivative mortgage crisis began breaking banks.  We explained that the stock market takes a long time to ferret out problems such as corruption of corporate and economic data which is typically hidden until it can no longer be managed.  Those who remember the DOTCOM bubble see many of the same corruptions of data they had then.  Profit and loss was and is now corrupted again.   Here are a few examples of how the corruption occurs over time. 

·     Valuations initially depend on truthful top to bottom line earnings and growth with a consistent accounting process.

·     Valuations are corrupted by changing accounting procedures.  For instance changing from LIFO to FIFO on a large product inventory during inflation artificially boosts short term earnings by technically selling the earlier cheaper inventory first.  Companies have been caught and even sped up the process by bookkeeping profit to the moment the sale was declared instead of waiting until the revenue was banked.

·     Debt and losses are transferred to accounts that make them seem to disappear by holding them as assets.  Greece did that once.  For instance a manufacturer of aircraft or propulsion systems which may see development costs double on a new aircraft or engine but may continue to book the losses as normal and as an asset even though they know the market may never allow them to recover those losses.

·     News reporters who continually puff up major corporations seem to find themselves very popular in the industry and people with an eye for those cooking the books don’t seem to last very long unless they wait until the damage is done and the corporation is failing or shut down.

·     The longer a bull market runs the deeper the muck of dishonesty becomes and the deeper the depression and the longer the stagnation persists afterwards.  When America was at its fastest growth rate the boom and bust cycle was four years.  The roaring twenties were very long and gave us a long depression.  Recently we printed quotations that show economists and politicians thought the boom would last forever in the 1920s just as the world sank into the Great Depression.  The longer the boom the more shoddy the bookkeeping and the more corrupted the reporters, politicians, and regulators become.

There are many well known ploys and hundreds of them are impossible to continually expose except in a deep recession.   The living dead do not exist in nature but flourish in stock markets and economies where the government is incompetent, illegally employs the IRS and the NSA to harass and punishes the honest opposition, drives out the most reputable of bankers such as Ken Lewis, and tries to steal the vote and cheapen American democracy by importing aliens who don’t want to salute the American flag or learn to speak our language.

 

The bear market is also beginning to show up now in the more selective indices.  The DJ industrials, DJ Average, NASDAQ, and the SandP are all topping out now.  On a cash flow basis the DJIA has just topped confirming the NYSE MCF sell signal.  These are all the early signs which give investors ample time to prepare.

The world economies are already in decline but all governments know that the thing they have to fear the most is investor fear itself.  The demand-supply for oil was already declining last summer and that always has to happen before oil prices free-fall.  The subsequent free-fall decline in the price of oil is because people are running out of places to store the oil.  It has been a boon for the ships which were idled due to the sharp decline in building and raw materials shipping.

The EURO is dropping sharply towards parity with the American dollar as the EU effectively drops their prices worldwide to increase their exports and possibly avoid sinking into an economic depression.  The Swiss panicked last week and floated their Franc causing sharp losses to some currency speculators.  Others made a windfall.  As the velocity of money declines the jagged problems that sink corporations, banks, and nations are becoming more dangerously exposed.  When the velocity of money is low, countries are tempted to print money.  But hyperinflation is usually much worse in that it breaks everyone but the corrupt who know how steal wealth.

The Department of Commerce’s retail sales information is rated A- for importance on a scale of A to F for all economic data.  It fell 0.9% in December while the administration was boasting about a strong recovery. 

http://newamerica2020.com/?gclid=CK28r5bXsMMCFfLm7AodG38A5A

 

Anyone close to real estate also noticed a sudden cooling in the number of people looking to buy homes in September, the third quarter, and a sharp drop in existing home sales in the fourth quarter.  The Obama administration has a bad habit of loudly exaggerating new reports while quietly revising the previous reports downward.

Obama gave small businesses time to switch to a shorter work week so that their employees can have government subsidize healthcare and the corporations can avoid that burden.  That is major reason for the USA unemployment numbers are falling while in actuality our workforce has shrunk with many young people unable to find decent jobs and many older workers giving up.  It is the same game leftist countries have been playing for years to reduce unemployment.   It is just another form of redistribution of wealth that reduces the unemployment statistic and fools many people into thinking something improved.  But it is also the reason few Americans think things are getting better and why Americans are so discontented with the current US government.

 

Until recently, Americans actually still worked about 47hrs per week and most got no overtime for it.  But for businesses to avoid the cost of Obama’s socialized medicine the workers need to work what is currently considered part time hours. 

http://www.gallup.com/poll/175286/hour-workweek-actually-longer-seven-hours.aspx

 

History shows that leftists lure workers with lower working hours and more time off.  The French now work just 35 hours/wk with 5 to 9 weeks/yr vacation the norm.  In Greece they work less. But in countries where the leftists form their dictatorship of the proletariat the economy becomes so dysfunctional that the work resembles slave labor.   

http://www.cnn.com/2011/TRAVEL/05/25/france.long.vacations/

 

If it were not for the fact that this particular American administration continues to think itself to be very clever and thinks that most Americans and other national leaders are very stupid, the world would be a much better place today.

Jan 24 What nation has three times as many lawyers as Britain, nine times as many lawyers as France and forty times as many lawyers as Japan? Why America of course where sycophants and a few corrupt lawyers are still harvesting lying deadbeats who join the lawyers who still ravage American industry and the medical profession. A law suit can destroy a company’s reputation so when a law firm begins to solicit for dishonest litigants to join them in a potential law suit, the companies buy off the dishonest law firms. It’s a big business. One way to stop this corrupt industry is to apply to the legal system the same rules lawyers have applied to the medical system. Public records are kept of every law suit filed against a doctor. As a result doctors can be destroyed by one or two frivolous law suits because their insurance rates go up. In fact the insurance needed to cover corrupt legal practices is the highest wasteful cost of the American health care system and it is completely destructive. The solution would be to apply the same standards to every industry that is applied to doctors. Make a public record of every law firm and individual litigant involved in every law suit involving the medical profession. Probably most people know one or two people who have joined in two or more law suits unrelated to the physical problem they claim they have. Often it is a back problem or a respiratory ailment.

The second way to reduce the number of corrupt lawyers is to take all the real estate transactions out of the hands of lawyers just as they have in almost every European country.  In France a trained public notary with some of the skills of a Town Clerk does all the legal work for most real estate transactions.  It takes only a few corrupt attorneys with a clientele of lying corrupt litigants to destroy professional lives and weaken our economy.  Let’s split up the legal profession and make many of them civil servants we can hire or even publicly elect.  Let’s keep records so we can see how many dishonest people have sued many times for the same thing so we can reduce the corruption of our legal system.

About 20 years ago there was a bus accident staged in NJ and within an hour the bus was filled with people all claiming they were hurt in the accident that had never occurred.  They were all embarrassed to be told the accident was staged and that they were recorded by the camera and that they were all lying.  This corruption is how many corrupt attorneys and other sycophant individuals supplement their incomes in America.  Let’s not quibble about numbers, let’s just break up the corrupt monopoly that is literally stealing from the public and the poor who perhaps would be benefitting from the taxes on higher incomes if there were just one fourth the number of American attorneys today.

http://www.tentmaker.org/Quotes/lawyers-per-capita.html

Jan 23 Once again the administration hype of this past year was not just false but also misleads and damages businesses. It does damage to American corporations who need the truth to plan and make a profit. Obama hype flushes US prosperity right out of the economy. Those who used Obama’s highly creative numbers for planning or buying stocks lost quite a bit. UPS express shares tumbled after admitting they grossly overestimated Christmas demand again this past year based on administration high GDP growth estimates. The same downward GDP revisions happened last year. We can expect many more poor reports due to inaccurate government economic data. More 40 hr week jobs will be lost as a result. More part time helpers will be hired and later fired. Times will get tougher until we elect a competent government that truly understands that corporations, especially smaller growing companies create most of the jobs that create national wealth.

Government consumes wealth even when it sometimes directs it toward research into new and better energy sources such as controlled nuclear fusion or fracking.  Guess what?  Obama, Hilary, and most Libtards in general support neither fusion nor fracking!  And when money was mandated in 2008 to repair “shovel ready” infrastructure, almost none of it went to infrastructure.   In blue states more went to new auditoriums and swimming pools for schools than for bridges and pipelines combined.  See if your blue state was an exception.  The reason for that is because the blue states had no comprehensive plans ready in time. 

http://money.cnn.com/2015/01/23/news/companies/ups-stock-falls/

 

Just a little more on the French free educational system.   

In France, K-5 is taught in every little town.   Their college (collège, our middle school) is taught in larger towns around the cities so that the students from villages are introduced to perhaps up to five times as many students. 

Their Lycee (our high school) is taught in the local major city.  For instance in towns near Toulouse, all the lycee students take the bus to and from Toulouse every day so that their high schools (lycees) approach the size and curriculum on our larger community colleges.  

 

About 15% of their population is offered the opportunity of a free university education.  Only a few percent have the opportunity to attend the best universities which are located in Paris.  And of course the brightest children of the leaders and the wealthy have private tutors and have the best chance of attending the best universities.  Ignorant American Libtards want to waste the time and talent of 100% of students so that more libtard teachers and professors can be hired and spread their ideas.  Good students have to humor the Libtards to get A’s.  Obama fit right in yet he still has his university applications and grades sealed by a court order so that Americans can not see that he initially claimed he was a foreign student just as another well known Massachusetts libtard claimed she was a Native American.

The greatest problem with our American educational system is that every child is forced into a system where about 50% of them become dissatisfied and have difficulty leading productive lives.  Many wealthy America Libtards love fields like art and sociology and they get through the American system and still cannot find jobs in their fields they become angry with the American system.  Our system produces too many unemployable people who have few useful intellectual and manual skills.  In Europe they show much greater respect for trained skilled workers.  And with a broad education and less spending on welfare, the breakdown in the European family does not vary as much across ethnic groups the way it does in American cities.   The public education system promoted in the USA by Libtards is most detrimental to black students for whom the benefit is very little.   That causes their high dropout rate.   The failed libtard educational system provides little in trade skills, business skills, and financial skills much less study skills.

 

Jan 22   I don’t like the name calling, and the illegal harassment that the Obama administration has introduced into politics.  Gun running, IRS abuses and name calling have gone on too long in the White House.  Last week the Wall Street Journal saw it was time to shift the name “Stupid Party” to the White House to let them see the truth.  They are now Dixon Diazs’s libtards of the Stupid Party.

http://en.wikipedia.org/wiki/Education_in_France

http://en.wikipedia.org/wiki/Secondary_education_in_France

http://jokes.conservativepapers.com/2014/03/04/boombox-cartoons-by-dixon-diaz/#.VL_aN1go4zw

 

Obama’s idea to of free community college education is absurd, wasteful, and shows the depth of ignorance permeating the White House.  We need to provide business and trade skills for people who do not like academic work so they will no longer drop out of school.  The ignorance of those who have advised President Obama is simply astounding.  Today Larry Summers was interviewed by Joe Kernan and he claimed that the older part of the French labor force are better off than Americans.  That is true only if we think that a thirty five hour work week starting with five weeks annual vacation and retiring after nine weeks annual vacation is consistent with a good labor force.  I know to most Americans that five weeks starting vacation sounds ridiculous and therefore they think I must be mistaken.  But I was assigned to and worked in France for almost three years and my four children succeeded completely in the French educational system.  It is true, people in France think Americans are naïve and they say Americans live to work but, “We in France work to live.”   But more importantly most Americans are erroneously told that Europeans get a much better academic education.  That is not true. Most Europeans however get a much better business trade education.  Most Europeans are as ignorant about our educational differences as Americans are of theirs. 

 

Only the top 15% of French children, mostly children of the most affluent, get access to a top free public university education.  And what the French and other European countries name the different school levels would make ignorant Americans like Larry Summers think their education is much better than an American education. 

 

The French have an elementary education that goes to grade 5.   It is very similar to America’s grade K-5 education.   French College is grades 6, 7, 8, 9 and it is essentially American Middle School.   Immediately you can see how ignorant American educators could become confused because almost everyone in France goes to College which is America’s middle school and fewer than 50% of American’s go to American College where in America, “College” and “University” are used synonymously. 

 

But what Larry Summers and most Educators are most ignorant about is the fact that most Europeans go to trade schools and do not finish the equivalent of our American high school.  To get into the French Lycee, the equivalent of an American high school, an examination is taken.  Based on exams and vocational aptitude, 25% of the French students are admitted to their high school (French Lycee grades 10, 11, 12).    Finally, only 15% of all the children who started in the school system pass a final exam and can go to the free University. 

 

Don’t get me wrong, socialist countries have fine educational systems and France has one of the best in the world.  25% of their entire population has the equivalent of a free American High School education and only about 15% have a free University education.  Most people there are trained in trades and business and that is one of the reasons they have such skilled factory labor forces.  In Germany they cultivate their labor force which is far more intelligent and competent because they are trained in professions.

 

Our Libtard politicians and educators for the most part never stepped foot outside of America or experienced life abroad and since they all seem to hate the fact they are Libtards, they hate America.  In America we now have many community colleges filled with students who should have been in trade schools not high schools to begin with.  They could be machine and computer savvy, they could know bookkeeping, accounting and business law and then would be productive, skilled, and proud in their jobs. 

Obama’s idea to of free community college education is both absurd and wasteful.  We need to provide skills for people who can not do academic work.  Libtards are the failures of our failed educational system who have not learned to coherently think for themselves.

We don't own any of the stock DRN but it has come to our attention that it is a real estate ETF that is skyrocketing when the industry reports say the RE sector is in decline. I have never seen anything like this inconsistency and volatility before with any sector. Rates have been relatively stable. So we would be cautious until there is a news report.

January 16, 2015 As we pointed out since September, we never know the worst problems in a cash flooded economy until the cash flow subsides and the rocks begin to be exposed. When the Quantitative Easing floodgates closed the level of free cash began to drop. A reversal of QE would likely result in a depression and we cannot even be sure the world will not enter one now even without reversing QE. In 1990 the Japanese were the second largest economy in the world vying to overtake America. At one point they even owned more of the top ten world banks than the US owned. That was when they became the first nation in the world to use quantitative easing. Their stock market has fallen (in US dollars) ever since they did QE.

Citigroup said profit tumbled 86% to $350 million in the fourth quarter of 2014.  The banks have been harassed and some think blackmailed by the Obama administration from the start.   In 2009 we reported how Obama harassed Ken Lewis forcing the founder of Bank of America into retirement.  This past year, Jamie Dimon said JPMorgan Chase’s legal expenses defending the bank from Obama fell from upwards of $11 billion the year earlier to below $3 billion as Obama harassment entered its fifth year.  Jamie Dimon used an obscenity to describe his frustration this past week. 

The stock market dropped 30% before the submerged Mortgage Liar-Loan derivative rocks sunk the US economy at the end of 2008.  Once the liar loan defaults emerged stocks fell another 30% to hit its bottom the week Obama took office.

The credibility of this American government administration is now lower than any previous administration in American history including presidents Andrew Johnson and Thomas Harding.  Race relations have also hit a new low and the unrest has been stoked by this administration.  These are times that try men’s souls.

January 15, 2015   We are nearing a point when many investors will begin to go on the sidelines.  The market makers can and must maintain an orderly market.  They are very clever and high volatility is how they usually do it.  Only the high frequency traders can profit much from high volatility.  The buy and hold investor becomes traumatized seeing high profits one day or week only evaporating the next day.   That is especially true of ETFs.   Each week many investors will be eaten alive while waiting for just one more volatile moment when they can get out with a smaller loss or profit.  The market makers will likely lose control at some point during the next year but hopefully in an orderly fashion where the exchanges will not have to be halted very long or where short selling and ETF trading are halted.  

How retarded are the “expert” economic and financial Libtards in the Obama administration and the “Stupid Party?”  They agree we must rebuild US infrastructure but they claim that the Keystone Pipeline is NG because it will only create 30000 to 40000 temporary jobs with only a few hundred permanent jobs and very few positions for government regulators and political appointees. 

Well would someone wake them up and tell them that all infrastructure jobs are primarily temporary labor union jobs.   The permanent maintenance jobs are only a fraction of infrastructure labor and capital costs.  The pipeline will not only create many temporary labor union jobs building the pipeline but many more labor jobs making and delivering the pipe and all the equipment.  Infrastructure is built primarily to facilitate economic growth not to create more government employees to regulate the distribute libtard related poverty.   It is no wonder that US Labor force is becoming fed up with the Libtards too.  You can find out more about the principals and aspirations of Obama’s political army of Libtards at the following sites.

https://www.pinterest.com/dixondiaz/libtards/

http://www.liveleak.com/view?i=62a_1364421648

https://www.google.com/search?q=libtards&rlz=1T4NDKB_en___US566&source=lnms&tbm=isch&sa=X&ei=Ntq3VIXEN_OIsQTdnIC4BQ&ved=0CAgQ_AUoAQ&biw=1561&bih=631&dpr=0.88

Recent Economic statistics

JOLTS – Temporary, part time and a few permanent Job Openings Nov of 4.972M up from 4.834M

MBA Mortgage Index 01/10 49.1% inundated for fear US interest rates are about to rise sharply.

Retail Sales Dec -0.9% not the huge gains Obama touted in December but instead the economy continued to get worse.

Retail Sales ex-auto Dec -1.0%  Not the puffed up record car sales touted earlier.

Business Inventories Nov has a 0.2% increase again, a sign of production slowing .

Jan 15 Initial Claims 01/10 316K rose from 294K

Continuing Claims 01/03 2424K down from 2452K. Finally the Libtards read what we said last week and are trying to make their falsified government data look more legitimate. 

PPI Dec -0.3% -down a symptom of falling oil prices lowering production costs.  

January 14, 2015   Back in December, Nobel Prize winning economist Robert Shiller said real estate was overvalued and today on MSNBC he said a drop in oil prices historically has preceded a collapse in real estate prices. Yet housing investments and housing ETFs are still overvalued. That would say shorts and bearish housing ETF’s might be a bargain at this point in time. Time will tell but Robert Shiller has a good record.

http://www.zerohedge.com/news/2014-12-30/robert-shiller-fragile-real-estate-market-not-good-investment

http://www.marketwatch.com/story/the-stock-market-is-overvalued-any-way-you-look-at-it-2015-01-13

Putin, Obama, Kim Jong-un, and Holder were not invited to the anti-terrorism parade in Paris.   In fact, Eric Holder was even left alone to pout in Paris while the parade was arranged.  Obama and Holder still refuse to recognize there is such a thing as Islamic terrorism.  How low can they go in the world of public opinion?

http://www.newsmax.com/Newsfront/Eric-Holder-Josh-Earnest-Marie-Harf-Martha-MacCallum/2015/01/13/id/618299/

http://www.nydailynews.com/news/politics/eric-holder-u-s-dignitaries-no-shows-paris-unity-rally-article-1.2073821

Jonathan Gruber is the $6 million dollar libtard who said Americans would be too stupid to figure out that Obamacare was a new tax on them.  Now full time jobs are being converted to part time jobs as many smaller companies employ part time workers to avoid mandatory libtard GruberCare fees and to save by paying lower salaries as well. The Obama administration is happy because most American’s do not know it is an old third world socialist trick to boost jobs and share the pain of impoverishment.  It also fits in well with the declining competence of American students and university professors in the politically correct liberal education system and the lowering of American student employment aspirations. More young people are becoming unemployable and turning to Marijuana and pain killers to create a more apathetic state.   In the mean time the Obama economy continues to stagnate and consumer demand is plummeting.  Housing sales have now slumped.  Still, no one in the news media has caught on or yet exposed the fact the Obama’s lower unemployment is the result of the complete destruction of the American full time career job.  Now workers expect to have several part time jobs during their lifetime requiring lower qualifications and fewer hours just when the advance of American industrial technology requires greater skills and knowledge.  Obama is simply defining old part-time jobs as his new full-time jobs and pretending the economy is recovering.   It is in fact going over a cliff that Obama cannot say it is not his doing.


Alasdair Macleod said, “This time last year I wrote that we were heading towards a second and unexpected financial and currency crisis that could happen at any time. I only modify that to say the crisis has indeed begun and it has much further to go this year.” 

http://www.zerohedge.com/news/2015-01-12/2015-year-slump

Chairman David Levy told clients in his monthly forecasting report,“Clearly the direction of most of the recent global economic news suggests movement toward a 2015 downturn.”   Levy argued the U.S. and many advanced economies have limited room for policy makers to reverse any slump, and low inflation risks tipping into deflation (or a depression) in many parts of the world.  The EU now sees that as the most dangerous world economic threat.

January 12, 2015  The US stock market sell signal that began in broad market last fall is now beginning to show in the topping out of the select portfolios of the NASDAQ and DJIA.  Usually the NYSE can be expected to be down 30% before most investors begin to sell their stocks.   In fact most investors who get out, get out before the market is down 60%.  But this time we believe the Stupid Party’s incompetence could give us a repeat FDR’s 90% stock market panic.   FDR handed Stalin all of Eastern Europe to be enslaved by the communists.  FDR was also good at blaming the previous president for the economy.  It is a characteristic of the "stupid" party. 
Eisenhower and Regan and other presidents who loved the Founding Fathers always surrounded themselves with competent people unlike leaders of the stupid party.  And perhaps a WWIII OK coral showdown with Islamic Terrorism will be what puts the free world back on a path of free enterprise leadership. 
The people who do best in a liberated world take responsibility for themselves.  And when we all do that while exercising good character, compassion, and a cooperative spirit we become part of a courageous society that can attain new heights of culture, civilization, justice, and humanity.  American wisdom boils down to love, goodness, truth, work, creativity and simplicity.  Wisdom is not a way of knowing; it is a state of being.  Free enterprise is the wisdom we use that creates our wealth, and capitalism is the wisdom we use to help reinvest our wealth.

Harry Dent predicted the 2008 financial crisis and 2007 housing crash and now Harry Dent discusses the next financial crisis, a crash in 2015 – 2016.  China has the largest bubble in world history and their economic information is manufactured even more than Obama’s.  The crisis that China will face could lead to their confrontation with Japan further making the Obama administration irrelevant in the world just as Putin has done with Russia.   Harry Dent agrees with us that this will not only be a 60% stock market decline but will likely be a 90% decline as FDR gave America after Hover had just a 60% collapse similar to the two we had that started in the years 2000 and 2007.   The Democrats blamed Hover for the 1932 Great Depression but actually he had the more standard 60% stock exchange decline.  It was FDR who then followed up with a 1, 2 stupid socialist punch like what we now potentially face with Obama.  Stock prices are over valued and investor and consumer demand is falling.  Instead of a 60% market drop this time, current government incompetence and over-regulation makes a 90% stock market decline possible before Obama leaves office. 

http://www.newrepublic.com/article/119187/mortgage-foreclosures-2015-why-crisis-will-flare-again
https://www.youtube.com/watch?v=Q-OFE5SGRi8

 It is interesting that it was the liberal President Clinton that deregulated the stock market in 1998 and the liberal Obama-Dodd-Frank triumvirate that gave us the liar loan housing bubble crisis 2007-2015 and then in 2010 the stupid party gave us HR4173 with about eight times more financial restrictions than the 1933 Glass-Steagall Act regulations that Clinton erased in 1998.  We got a Dotcom bubble bursting from Clinton’s deregulation, a liar loan 2006 housing bubble bursting with the Dodd-Frank-Obama Liar-Loans.  They also created Fannie and Freddie, certified quasi-government employers of libtards, and now we are faced with a looming HR4173 blueprint for an economic depression due to the “Stupid Liberal Party” that can’t do anything right much less govern.

 We discovered a NASDAQ  anomaly!  The NASDQ composite index that normally traded only 2.5 billion shares gave a dangerous indication on October 13, 2014 as the market plunged and trading surged to what is listed as a historic record 63 billion shares.  It must have been traded in a bank’s dark pool because there was a negligible selloff.  We ran our model and if the transaction were real and done in the public market the NASDQ would have dropped about 800 points on October 13, 2014.  If the transaction was real it indicates some institution saw something dismal coming soon to the market just after we began to warn that the market was topping. 
The broad NYSE exchange plunged and gave a cash flow sell signal that month.  There was no capitulation at the stock market lows that month even though that was falsely reported on NBC.  The DJIA now seems to have passed its peak for this seven year business cycle.  The NASDQ is currently at its peak for this fading business cycle.  We have never seen anything like the NASDQ volume surge October 13, 2014 that caused no panic.  Could it be an error?  Why has no one reported it?

http://finance.yahoo.com/q/hp?s=%5EIXIC+Historical+Prices

 Here is some satire on who is to blame for the big-lie of Grubercare.   Gruber’s ObamaCare has many built in lies.  First it fooled people as a new tax.  It now causes many small companies to reduce their work week hours so that they are exempted and that means they hire more part time workers which makes part time employment grow faster than 40 hr employment drops.  Therefore the “Stupid Party” liberals like Obama really believe they are not lying to Americans by claiming net unemployment has fallen.   Americans see the manipulated numbers are misleading and only government and financial sector salaries are improving.  Most Americans realize the Stupid Party economy is still declining.

http://safeshare.tv/w/jyeqLxShwx

http://www.foxnews.com/politics/2014/12/09/jonathan-gruber-on-hot-seat-heading-into-hearing/

Under-employment is spreading the poverty, compensating government employees and helping to positively distort the Obama stupid party statistics even as the American Economy is still tanking.   The socialists of Europe began doing the same thing more than forty years ago and that is why even Germany, France, and England can no longer afford a national defense to combat terrorism.  And eventually with the Stupid Party in power everywhere in the “free world” China, Russia, and the Islamic State will have overwhelming military power.  The principals of the American Founding Fathers are being incrementally destroyed by Stupid Party liberals.   Perhaps the Stupid Party will finally have what it has been fighting when we have a single united Stupid Party Slave State world with prison camps and Islamic State beheadings for all free thinkers.

Jan 9 The record employment falsely reported in December has just been revised downward. Nonfarm Payrolls Dec 252K revised down sharply from 353K reported in December. Nonfarm Private Payrolls Dec 240K revised down sharply from 345K.

Unemployment Rate Dec 5.6% was reported down from 5.8% because 30 hr part-time Obama workers are replacing the American 40 hr workforce. Average Workweek Dec now is only 34.6 hrs when it once was close to 40hrs.

Hourly Earnings Dec -0.2% after falsely reporting it 0.4% higher during the month of December.

Consumer Credit Nov $14.1B down from $16.0B

Under Obama, the nation’s Community Colleges have to a large degree become baby sitting services and Obama thinks they should now be free up since they are no longer of any employment value except for the fact the teachers would be more government workers voting for socialism, higher pensions, and more free things.

Wholesale Inventories Nov increased 0.8% as the Obama recession settles in.   The glut of oil caused by the worldwide economic slowdown will soon fill every storage facility available and at that time many wells will be forced to shut down.  Currently they have only stopped drilling new wells.  The drop in world energy demand is a very clear sign of the declining world economy.

http://biz.yahoo.com/c/e.html

 

Jan 8, 2015  The American economy is on the verge of collapse but Gruber and Obama think Democrats, liberals and socialists are extremely stupid so this is what they have  done to hide higher unemployment and the looming crash.   They have pressured American employers to hire part time workers for a 30hr per week instead of full time workers at 40hrs per week.  If an automobile company needs 1200 hr of new work done they now hire forty 30h week workers instead of thirty 40 hour week workers and thus create 10 new Gruber-Obama part time jobs.   Gruber then told Obama to define full time as only 30hrs and then penalize all companies that have 40hr workers by saying 40hr employees must be privately subsidized for the cost of socialized medicine but part time employees (30hs or less) get a government subsidy.  The net effect is that the unemployment rate has gone down because most new workers now work only 30hrs so that the private corporation does not have to subsidize socialized medicine.   France has been doing that for more than fifty rears and now very few of the French still work a 40hr week.   The socialists abroad actually often say, “Americans live to work, but we socialists work to live, eat, and drink.”  Liberals and socialists think work avoidance is good character trait because socialism is a job destroyer that creates government jobs welfare and free things for incompetent political friends, corporate favors, and corrupt politicians.  Russia and much of the Moslem world, South America, Africa, and Asia are steeped in socialism and are corrupt and almost in chaos.  The EU is now on a slippery slope of recession in concerned about the possibility of a  depression.

 

Obama’s manipulation of federal statistics is now being done automatically because of the Gruber-Obama altered unemployment statistic to appear to be dropping as if the economy is improving.  Initial Claims 01/03 294K down 4K from 298K last month.  But once again Continuing Claims 12/27 were 2452K up 1K from 2351K last month.  The law of continuity says this bias makes no sense since the length of time allowed with unemployment payments dropped well over a year ago.   Times are still tough everywhere and this is not even the time of year when corporations expand.  Real new hiring typically peaks in late spring and early summer.   This manipulation is caused by Obama (by executive decision) defining full time employees as only working more than a 30hr week instead of 40hrs as has been the American standard because Obama found out from Professor Gruber that stupid Liberals and Democrats need to be deceived in order for them to vote for people who support socialism (liberal pseudo-Cherokee or otherwise).   But the Republicans are not so stupid and plan to define full time employment again as 40 hrs and American unemployment may well climb closer to 15% than Obama’s socialist 5.8% interpretation.  Obama will try to maintain his employment statistics by eventually having Americans only work to barely get by as they do in Russia and France.

http://townhall.com/tipsheet/katiepavlich/2015/01/08/obama-will-veto-legislation-restoring-the-40hour-work-week-n1939704

http://www.washingtontimes.com/news/2014/nov/10/obamacare-architect-we-passed-law-due-to-stupidity/

http://www.wsj.com/articles/house-moves-to-change-full-time-work-to-40-hours-in-health-law-1420669832

obamacare-architect-lack-of-transparency-was-key-because-stupidity-of-the-american-voter-would-have-killed-obamacare

https://www.youtube.com/watch?v=Sn2eDyaq3mQ&feature=youtu.be

 

Housing permits and starts were down for 2014 vs 2013

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

 

Total hourly workers wages are down about 40% since Obama took office.  They are the people who in large voted for the Obama.

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

 

The ratio of stock market bulls to bears peaked in mid 2014 and began to decline.

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

 

The broadest stock market indicator, the NYSE peaked in July of 2014 and failed to reach a new high on three occasions and broke the neckline giving a sell signal in early October. 

http://finance.yahoo.com/echarts?s=%5ENYA&t=my&l=on&z=l&q=l&c=

 

 

Jan 7, 2015    It seems two Direxion ETFs are behaving abnormally.  While housing related shares have been going down this week and iShares U.S. Home Construction ETF ITB has been down the last four days, the Direxion housing ETF DRN has been going up.  This is highly abnormal and is perhaps a problem the SEC will have to look into.  Sector ETFs are supposed to follow their sectors.  Lloyd Blankenfein the chairman and GEO of Goldman Sacks said this morning that deflation could mean a 40% drop in housing prices.  Deflation is already a problem in the EU.  He said deflation lowers expectations so people put off buying and doing things to wait for better bargains.  That is the opposite of what we need for an economic recovery.  So he is in favor of the FED continuing QE rather than reversing it.  A drop in housing prices now would mean a complete housing and commercial building collapse.  That brings us back to the beginning.  Why are the two Direxion ETFs behaving abnormally as though housing construction and commercial building are or will be booming when the risk is now economic contraction?   Usually a contradiction is a sign of manipulation.  But who would be doing that?

Last week someone predicted a bull market in 2015 citing as evidence that the DJI has never declined more than two days in a row over the last year.  Well it just broke that record and declined four days in a row.

American Economy

Factory Orders Nov -0.7% down again after -0.7% last month

ISM Services Dec 56.2 down sharply from 59.3 last month

 

Jan 6, 2015    Controlled contained small-scale thermonuclear fusion is the ultimate world energy solution.   As we said months ago, the glut of oil and subsequent drop in oil’s price was caused by the current worldwide economic slowdown similar to 2007, and 1929.  We showed that with historic national Oil price data that Obama could not have had falsified like his recent GDP reports.   We are lucky if it is 2% growth now.  This American administration incompetence is not an Obama directive but rather is a learned response of government bureaucracies in any incompetent and corrupt government.  It is true of the communist governments in China, Russia, and N. Korea as well and the American news media (with the exception of the Wall Street Journal, the Fox network and most of the CNN staff).  About half the people in the American government are now appointed by corrupt crony socialist administrators where loyalty to leftist ideals trumps competence and integrity.  The imminent stock market plunges will affect the DOW and SandP which are the last refuges of the fund managers.  Soon the short sellers (who have been essentially absent these last three years) will dominate the market.  But have no fear; the next rally will be falsely called a second capitulation.

 

Historically, the market drops 30% before the economic news recognizes there is a national recession raging.  Then the market plunges another 30% in less than half the time of the first 30% drop.  But in 1932 FDR took President Hover’s 60%  stock market drop and made it a FDR  90% Great Depression stock market drop.  FDR replaced Hover who Americans ejected after one term.  Obama was not ejected as he should have been after his first term.  So Obama’s second term sets him up for a potential FDR first term type decline of 90%, something the world has not seen for 86 years.   

The greatest victim of the surge in energy supplies will be the solar, wind and other electric alternative energy sources.  The collapse of Tesla and those other alternative markets will be met with a resumption of coal as an energy source when energy demand resumes and oil prices rise again.  Asia and Africa will remain coal consumers.  High maintenance solar energy systems will rapidly deteriorate and fall into disuse.   The expense of dismantling the old deteriorating and leaking systems will end the popularity of alternative energy for about another 30 years until people ignore that solar is not economical yet.  This is an historic repeat of what happened during the incompetent administration of Jimmy Carter where his administration said the earth would run out of oil year by the year 2000.  In fact the liberal Daniel Patrick Moynihan said something like that during Nixon’s administration too.  Needless to say energy has always been an American concern.   At first, early Americans used water power and wood, then coal, then oil, then nuclear fission. 

The real breakthrough will happen when America leads a Western World effort to develop controlled nuclear fusion for all humanity.  That effort started in the USA in the 1960’s but was forgotten during the Jimmy Carter years.  It is the real energy hope of our future.

http://www.huffingtonpost.com/2010/07/03/moynihan-nixon-global-warming_n_634526.html

https://www.princeton.edu/~achaney/tmve/wiki100k/docs/Nuclear_fusion.html

http://www.bostonglobe.com/news/nation/2014/06/07/mit-used-lobbying-influence-restore-nuclear-fusion-dream-after-white-house-sought-stop-funding/T5Q9esYqbZsxIbXUpnEHFN/story.html

 

Jan 5, 2015    Our message is that the bear has gathered strength and will likely now return with fury this month.  As the level of prosperity in the global economic river is lowered the rocks will appear.  There was no capitulation in the market plunge that ended mid October.  The volume on that bottom of the plunge was about half what occurs with a real capitulation.  The following rally did not set a new high in the stock market as measured by 30,000+ American stocks.  Only the relatively few stocks hit highs and those are the ones in the indices which people buy because indices perform better than the stock market.  Expert stock pickers cannot beat the DJI or the S and P and that should be enough proof to anyone with more than half a brain that the DJI and the S and P are lagging not leading indicators of economic recessions.