If Obama only knew that socialist-Democrats on the Senate Banking Committee caused this current meltdown.

If Obama only knew that socialist-Democrats on the Senate Banking Committee caused this current meltdown.

Racist socialist-Democrats wanting to redistribute wealth to a particular minority forced lenders to turn a blind eye and ask no financial questions of people having no visible means of paying back mortgages. The racist socialist-Democrats stupidly argued that home prices would rise forever and give those people a free ride to wealth. The result was the Democratically controlled Senate (while Obama was a part of it) undermined the mortgage industry and secretly destroyed the mortgage derivatives risk ratings system that ultimately brought down the world banking system. Obama is a bald-faced liar saying that President Bush was responsible for the financial meltdown.

Had the racist socialist-Democrats in the Senate not forced banks to lend to indigent people of their own race the meltdown would have been delayed until the Socialist PIGS (Portugal, Ireland, Greece, and Spain) went bankrupt. Socialist Iceland, which loves to tout that it is the only country run by women, was first country to declare insolvency this time.

Osama Obama yesterday said that America is strong enough to absorb another 911 attack. Obama is an embarrassment to America. He is virtually challenging the Moslem Jihadist moral morons to attack again.


World Markets:
Normally unemployment in the socialist EU is about twice that in America. At best Spain gets down to 8% but today in Spain unemployment is at 20%.

China's use of a devalued currency to wage economic war on the West could now lead idiot Obama to wage a tariff war like the one that contributed to the FDR depression of 1933 to WWII. If Obama would read a few books instead of just a teleprompter he would find out that tariff wars have no winners.

Economic Calendar
Case-Shiller 20-city Index of home prices in Jul rose 3.2% vs. 4.2% last month a weakening in home price increases but still good.
Consumer Confidence Sep decreased to 48.5 from53.5 last month and that is quite bad.
Crude Inventories 09/25 fell 500,000 barrels and the price of oil is increasing again.

This week
Sep 30 8:30 AM GDP - Third Estimate Q2
Sep 30 8:30 AM GDP - Deflator Q2
Sep 30 8:30 AM Initial Claims 09/25
Sep 30 8:30 AM Continuing Claims 09/18
Sep 30 9:45 AM Chicago PMI Sep

Oct 1 8:30 AM Personal Income Aug
Oct 1 8:30 AM Personal Spending Aug
Oct 1 8:30 AM PCE Prices - Core Aug
Oct 1 9:55 AM U Michigan Consumer Sentiment - Final Sep
Oct 1 10:00 AM Construction Spending Aug
Oct 1 10:00 AM ISM Index Sep
Oct 1 2:00 PM Auto Sales Sep
Oct 1 2:00 PM Truck Sales Sep


Market Outlook Sept 30, 2010

Profit taking is advisable especially in commodities like silver that do not realistically have any probability of increased demand. In fact copper production is rising and with it is the rise in supply of silver which is a by-product. Gold has some potential use as a hedge for possible European currency devaluation. Other commodities such as grains can be expected to be volatile because the supply and demand regions are far apart this year. Grain prices are rising faster than gold.

The two main costs of American Health care are corruption and litigation not the health care itself. 60-minutes year after year has exposed the fact that the government does not certify that health care related providers are real let alone honest before the government pays them for the billed services. What they show is $billions being paid to phony companies. Stealing from the American health care system is so lucrative that criminals give up their illegal drug businesses to steal from the American corrupt socialist run health care system. What 60 minutes does not show is that doctors and dentists become corrupt themselves to recover their costs. A single surface dental filling becomes a dual surface procedure so that the dentist gets twice what the government allows as the cost. That is just one example of how the system is corrupting providers. Litigation costs are paid for by doctors requiring additional unnecessary tests to avoid manufactured phony malpractice litigation by trial lawyers. America has four times as many lawyers per capita as Germany and Japan and China has no lawyers. Think about how much better it would be if all those American lawyers were investigating government agency related fraud instead.

Consumer confidence is dropping again as Obama enacted socialist government expansion of a powerful consumer litigation agency this week to further harass private corporations and kill private enterprise. Government related fraud in the mean time runs amuck. Obama already told insurance companies that they have to cover even married children to the age of 26 and cannot increase premiums so private insurance companies get driven out of business so that criminals can corrupt all coverage they way 60 minutes has shown they already corrupted government insurance.

It is too difficult for criminals to deal with private insurers because the private ones check to see if the charges are real or fraudulent before they pay. Obama doesn't want to subject his criminal supporters to that risk. Only stupid racist affirmative action government workers can assure that crime pays in socialist countries. His goal is corruption comparable to Malaysia and Nigeria his homelands.

EU sovereign debt issues are growing again and California is closer to bankruptcy now.

Deflation remains the world's greatest threat, so the FED is trying to raise inflation expectations to unleash the cash being held back due to Obama's incoherent tax policies. Stupid socialist-democrats parrot Obama's claim that he will give a tax cut when in fact he is just not having the Bush tax cut expire. Obama's speeches sound very much like "Big Brother" in George Orwell's book entitled "1984". Greenspan has advised that the tax cuts be allowed to expire.


World Markets
Asian markets were mixed again last night. Shanghai was up 1.7%, Hong Kong down -0.1%, India up 0.6%, and Japan down -2.0%.

European markets are down sharply this morning in a range of about -0.3% to -1% about half way through their day as American futures just begin to rise.

US pre-market futures were down slightly again, down -0.1% at 8 AM EST.