Thursday, Barclays Head of Research Larry Kantor warned at briefing in the British investment bank’s New York headquarters, that the equity market's confidence bubble is bound to burst. It’s just a question of when...

Since Obama’s election American corporations have dramatically increased their cash being sent overseas.  The prohibitive 35% corporate tax scheme only applies to honest corporations so corporations use loop holes that could swallow an A380 aircraft.  U.S. firms are pressured to keep 58% of their cash, or $840 billion, sitting overseas with no benefit to the money in circulation at home.  QE3 is supposed to fix the velocity of money yet the economy has stagnated and the labor market has moved sideways. 

For the last year market analysts have been low balling economic expectations so that a corporation can even beat expectations if it reduces its losses.  FedEx says it will increase its cost-cutting program because its quarterly profit missed Wall Street low ball expectations, a signal that package-delivery customers worldwide continue to shift to cheaper transportation.  
 

A study shows that American energy drinks are linked to deaths and hospitalizations, boost blood pressure and lead to an erratic heartbeat.

 

Red Chinese Premier Li Keqiang promises to do the kinds of things the Founding Fathers of America believed in.  The leader of Red China has just pledged to open the economy to more market forces and strip power from the government to achieve 7.5 percent annual growth through 2020 and spread the benefits of the nation’s expansion.  Li talked of a “hand” mistakenly attached to the government that needed to be returned to the market. He added that 7.5 percent growth is needed to meet targets for 2020, which include doubling per capita income. Gross domestic product last year expanded 7.8 percent, the least in 13 years.  While Obama has scorned American free enterprise and is digging a hole to bury it, Li Keqiang is digging out and has a new faith that his predecessors resisted.  Li Keqiang is building a new empire of freedom, opportunity, and prosperity while Obama is dismantling America and giving Americans equality of poverty.

http://www.bloomberg.com/news/2013-03-17/china-s-li-vows-to-keep-7-5-growth-and-spread-wealth-benefits.html

 

Gun control; the historical agenda is to disarm the people you want to oppress.

http://www.youtube.com/embed/9RABZq5IoaQ?feature=player_embedded

 

California and Rhode Island have the nation’s worst unemployment rates of 9.8% as of January, the Labor Department said.  Nevada with an unemployment rate of 9.7% moved off the bottom of the nation’s jobless ranking down from 10.2% in December.  The three states that are competing for the highest unemployment are the most liberal in the nation with drug proliferation and at spending what they can't afford.

 

George Soros says “sell gold” so he can buy it cheap?  It is not good to buy when Soros says to buy because he is selling to you.  He sold gold last year and he wants others to sell now so he can get back in.  Never believe a market manipulator.  Gold and silver seem to have bounced back as America leads the world toward Obama-bankruptcy of American principles and work ethic while China adopts more of the principles of the American Founding Fathers.

http://www.threethriftyguys.com/2013/01/2013-is-now-a-good-time-to-buy-gold/

 

World Economies

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

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

The Ifo institute German business climate index, based on a survey of 7,000 executives, declined to 106.7 from 107.4 in February.

German adjusted jobless rate held at 6.9 percent this month after the January rate was revised up from an initially reported 6.8 percent amid signs that Europe’s biggest economy is returning to growth after a contraction at the end of last year.  But Germany still shows stagnation since 2007.  In spite of the flooding of the world with money, the market has hit but has still failed to break out from the 2007 high even with the world being flooded with stimulation credit.  Remember since 2008 we have still had over 15% inflation when we include food and energy. The German market continues to hit resistance.

http://in.finance.yahoo.com/q/ta?s=%5EGDAXI&t=my&l=on&z=l&q=l&p=&a=&c=

The Paris prosecutor’s office said that Wednesday the French police searched the home of Christine Lagarde, the managing director of the International Monetary Fund. The Cour de Justice de la Republique is looking into whether former French finance minister Lagarde made an 385 million-euro missjudgement in agreeing to an arbitration to end a claim of businessman Bernard Tapie, a supporter and contributor of Former President Nicolas Sarkozy and others.

The Greek market indicates stagnation since year 2000.

http://in.finance.yahoo.com/q/bc?s=AEX.AS&t=my&l=on&z=l&q=l&c=

 

The French market indicates stagnation since year 2000.

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

 

 

In September of 1992 when manipulator George Soros made $1 billion by helping to force the pound out of the system that preceded the euro, sterling dropped by 9.5 percent. Sterling is down more than 7 percent against the dollar this year.

The British market indicates peaking in 2000 and stagnation since 2007.  It is not due to a loss of confidence in the economic policies of U.K. Prime Minister David Cameron; it is the policy Britain has used many times to improve exports.

 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 given in excess of 15% inflation. 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

Congressional leaders say they want to prevent even a partial halt of government operations by getting the stopgap measure to President Barack Obama, a Democrat, before March 27. That’s when the law keeping agencies’ lights on will expire. The DJI failed to break out.  Given the inflation exceeding 15% since the last high it has a long way to go to break even.

http://finance.yahoo.com/q/ta?s=%5EDJI+Basic+Tech.+Analysis&t=my

 

The DJA in 2013 is also now at a record high due to inflation. Look at the spike up this year 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

Existing Home Sales continue depressed.

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

Mar 18

NAHB Housing Market Index Mar 44 48 48 46 –

 

Mar 19

Housing Starts Feb 917K up from 910K increasing new housing stocks

Building Permits Feb 946K up from 925K

Mar 20

MBA Mortgage Index 03/16 -7.1% declined more from -4.7% decreasing existing home sales

AM Crude Inventories 03/16 -1.314M sharply lower2.624M (higher prices)

FOMC Rate Decision Mar still at 0.25%  

Mar 21

Initial Claims 03/16 336K up from 332K even after Obama shifted 2K to last week

Continuing Claims 03/09 3053K up frpm 3024K even after Obama shifted 24K to last week

FHFA Housing Price Index Jan 0.6% no improvement from last time for existing housing

Existing Home Sales Feb 4.98M up slightly from 4.92M that is good for a change

Philadelphia Fed Mar 2.0 up from -12.5 also good

Leading Indicators Feb 0.5% flat 0.5% due to stock market

Natural Gas Inventories 03/16 -62 bcf not very useful information -145 bcf

 

Markets March 21

Cyprus may be the first EU state to be ejected and that will be a sign for Greece which is not far behind.

Look at the Bulls- Bears indicator.  The risk of being long is very high when bulls outnumber bears as we told you for the last month.  Now you can see Cramer had been lying to investors because he had been saying the market was climbing a wall of worry when actually investors were very bullish.  Even more bulls than bears means even more exuberance. 

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

 

Bernanke is pushing on a string.  The FED has run out of leverage at close to 0% short term interest rates. 

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

 

The VIX was worse (lower) recently than the low where it was in 2007 before the last bubble burst.  This week it began to rise again and may now continue to rise.  VIX has started to move up again and needs to go up above 30 before a bear market normally ends and it is time to buy.  Low Vix means excessive confidence.  A significant equities decline is now possible and it could last about another month on average before a breather.

http://finance.yahoo.com/q/bc?s=%5EVIX&t=1y&l=on&z=l&q=l&c=

 

World market updates:

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

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