New home sales are lower now than during the bottom of the recession of 1991. But it is hyped as, “New-home sales the most since 2009” to get people into the stock market now with the DJI at an historic high. Americans are being lead in at the worst time.

New home sales are lower now than during the bottom of the recession of 1991.  But it is hyped as, “New-home sales the most since 2009” to get people into the stock market now with the DJI at an historic high.  Americans are being lead in at the worst time. 

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

Here is the reason for the current stock market and Bond bubble.  The Fed more than tripled its balance sheet since 2008 to more than $3 trillion through its bond purchases, known as quantitative easing.  Treasuries are now giving a higher return but that means that the dollar value of the “safe” treasuries Americans own declined.  Treasuries, stocks, and bonds are all near epic highs and the bubble is just waiting to pop.    

Shiller: “All this housing optimism is way too premature.”“I think that we might have [hit bottom], but my biggest sense is that probably nothing dramatic happens either way. “  See:

http://www.businessinsider.com/shiller-housie-prices-2013-1#ixzz2J5uhjXbl

Today Greece’s socialist candidate was in town to meet President Obama.  His chief economic advisor was interviewed on Squawk Box this morning and was asked if they thought President Obama was a socialist and he said yes Obama was a socialist.

Obama’s policies are destroying the wealth of the wealthiest nation in the world.  Churchill was right, socialism delivers equality of poverty and it pulled down Japan and now is pulling down the USA.

The three-judge high court ruled that the Executive Order appointments President Obama made to the National Labor Relations Board last year are Unconstitutional.  But the ruling has much broader constitutional significance, saying Mr. Obama erred when he said he could even claim the power to determine when he could make such appointments.  It is an abuse of Executive power to delay appointments to avoid the Constitutional right and duty of the US Senate to question the credentials and competency of Presidential appointees.

Apple’s dip in profit from last year is not due so much to a cooling of its business as to the overoptimistic last quarter comparison with a quarter with no release that was too optimistic.  We said Apple would peak and warned to sell when it did last year. It had more to do with the scheduling a string of product introductions.  We pointed that out several times last year.

Janus Capital Group reported a 13 percent decline in profit as clients pulled out money for the 14th consecutive quarter. 

AT&T's earnings missed in the fourth quarter.  AT&T has a high cost poor telephone and internet service and is now well overpriced relative to their competition making it a risky purchase at this time.

Boeing Co could correct the issues with the 787 Dreamliner.  But remember how many times they delayed the airplane and it becomes apparent that Boeing is not the same engineering giant it was 20 years ago.  Lithium batteries are not rocket science. 

It took 10 years and $1Trillion to place an American on the moon when America believed in exceptionalism.  Today America is running a deficit alone of over $1Trillion each year.   Our children will be impoverished and our grandchildren will be starving like they did in Easter Europe, the USSR, N. Korea, and every country that destroys the incentive to work with socialism.  China’s entire recent prosperity is the result of their experiment with old American style free enterprise and only a socialist is not capable of understanding that.

http://www.youtube.com/watch?v=mUDNExAGhgY

When will the Bernanke Bubble burst?  Federal Reserve Chairman Ben S. Bernanke’s unprecedented bond buying pushed the Fed’s balance sheet to a record $3 trillion as he has the Fed now purchasing $85 billion of securities every month, using the full force of its balance sheet to inflate securities markets. The central bank already began $40 billion in monthly purchases of mortgage-backed securities in September and has now added $45 billion in Treasury securities to that pace this month flooding world markets with money that has no place to go but into stocks and other securities.  Some people say the American collapse could cause US unemployment to be the highest in the world.  One person thinks 50% US unemployment and socialist equality of poverty will make the fiscal cliff fade quickly from memory as an inconsequential event in this administration. 

An EPA rule mandating refiners generate or purchase fuels made from wood chips, and vegetation and other debris was overturned by a federal appeals court in Washington, “Apart from their role as captive consumers, the refiners are in no position to ensure, or even contribute to, growth in the cellulosic biofuel industry,” the court said in a 14-page ruling. According to the court, the EPA rule tells producers “Do a good job, cellulosic fuel producers. If you fail, we’ll fine your customers.”  It was another blow to American socialists. 

World Economies

http://www.bloomberg.com/news/

http://www.foxbusiness.com/index.html

China has been making noises and has been claiming they are stimulating and growing their economy for over a year now but many of China’s companies are essentially bankrupt shells at this point with little chance of a turn around.  Bulk trade which is the indicator of China’s health has been dead for over a year now.   Under socialism it is impossible to fire 50% of the workers at a steel plant and hire the same number somewhere else to build railroads and electrify rural areas.  They now need to deal with infrastructure and high pollution if they are going to resume real national economic growth in value. 

 http://in.finance.yahoo.com/q/bc?s=000001.SS&t=5y&l=on&z=l&q=l&c=

 Under Obama’s socialism the USA now has the same problem with workers in highly automated American ports that do little and collect $180,000/yr and 9 weeks vacation every year.  They are under executive request to do Obama a favor and not to shut down the entire American east and west seaboards as they voted to do.

The French market indicates stagnation since 2000.

http://in.finance.yahoo.com/q/bc?s=%5EFCHI&t=my 

German stocks in 2013 are now all-time highs as when the bubbles burst in 2000 and 2007.  See:

http://in.finance.yahoo.com/echarts?s=%5EGDAXI#symbol=^gdaxi;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

A triple-dip recession looms as UK economy falters again.  The British market indicates peaking in 2000 and stagnation since 2007.  Look at the sharp spike up in is stock prices the last month as Bernanke’s $85,000,000,000 each month even exceeds the capacity of the American economy to absorb and it begins to be wasted on investments abroad of which most will be lost forever.  QE crippled Japan by 1990 and they still have not recovered.  The Obama/Bernanke bubble will destroy even the British, French, German and others that are being sucked into this socialist tornado of cash.

 http://in.finance.yahoo.com/q/bc?s=%5EFTSE&t=my

The Swiss market indicates stagnation since 2007.  But once again look at the spike up in stock prices with Bernanke’s $85,000,000,000/month gift from America to the stock and bond markets of the world as more people enter poverty, go hungry and lose their jobs under Socialism’s equality of poverty.

 http://in.finance.yahoo.com/q/bc?s=%5ESSMI&t=my

 The NYSE is similar to the British and Swiss and indicates stagnation since 2007 but no spike up. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 American Economy

The stock market continues disengaged from the economy and is becoming increasingly unstable because the FED has created a balance sheet bloated at a rate of $85,000,000,000 per month.  Volume is extremely low meaning very little cash can and is controlling the market.   

The DJA in 2013 is also now at a record high. Look at the spike up as $85,000,000,000 flows into markets each month.  http://finance.yahoo.com/q/ta?s=%5EDJA&t=my&l=on&z=l&q=l&p=&a=&c=

 This week

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

 Jan 22

 Existing Home Sales Dec 4.94M down from 5.04M

Jan 23

MBA Mortgage Index 01/19 7.0% down sharply from 15.2%

MBA Mortgage Purchase Index 01/19 NA

FHFA Housing Price Index Nov 0.6% no change from 0.6%

Jan 24

Initial Claims 01/19 330K down slightly from 335K

Continuing Claims 01/12 3157K 3200K down slightly from 3214K

Leading Indicators Dec 0.5% Up due to the stock market from -0.2%

Natural Gas Inventories 01/19 -172 bcf fell from -148 bcf

Crude Inventories 01/19 2.813M up from -0.951M

Jan 25

New Home Sales Dec 369K down from the Nov 385K

Yet this is how the decline in New Home Sales is hyped….New-home sales the most since 2009.   

See how Americans are deceived just like citizens were in the USSR and are in China today.  Here is the real situation. 

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

 

Markets January 25, 2013

We need to look at Japan to see what will likely happen in America after the QE experiment because we are copying Japan’s Quantitative Easing that they used from 1985 to 1990.  Japan’s stock market is now down about 70% from 1990.   The question now is can we salvage America from the path of socialism Japan took; jobs for life.  If we side step socialism the next question to ask is will there be a Democrat president elected again in the next 100 years?

It is intuitively obvious that if US treasury interest rates rise bond prices must fall.  But the US has QE to keep rates low and if we continue we will only be more addicted to the QE high.  If we stop QE we will have much higher unemployment.  And if we never stop QE we get like Japan and bonds will be flat but stocks will plummet. 

The DJ Rails confirmed a DOW buy signal. The DJI and DJR had confirmed a sell signal together in August 2011and both now confirmed a DOW buy signal too late to be worth a nickel.  Those two indices are now so manipulated we would not trust them at all.  They now are just an indicator of the waste of US taxpayer money going into stock markets instead of jobs, research, and liquidating the bankrupt housing overhang.

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 VIX is down to where it was in 2007 before the last bubble burst.  A low VIX normally precedes a panic sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end.  http://finance.yahoo.com/q/bc?s=%5EVIX&t=my&l=on&z=l&q=l&c=

Is the Baltic Dry Index is near a new low.  China probably hit bottom.  

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

World stock market updates:

http://in.finance.yahoo.com/intlindices?e=asia

http://in.finance.yahoo.com/intlindices?e=europe