Mar 14 When you take a $trillion a year and put into stocks you get stock price inflation not economic growth. The money leaves the stock market in the volume commissions and salaries. Volume of trades went down 50% during this current bubble. That means the market makers are not making money pumping so they will soon begin dumping again. That will cause margin calls, panics, and brokerage bankruptcies. Once investors get stuck with a broke broker who wipes out its clients then panic will really take over. Let’s hope that does not happen. We have never seen trading volume fall like it has now, not since the Democrat peanut farmer President had 52 Americans being held hostage in Iran for 444 days. At the end of that bubble the trading volume was also down 50%. The evil empire socialist president will not go down in history the same as the smart and compassionate man that the nuclear engineer president was. The conservative borax clean President Reagan hopefully has a younger clone hiding behind a curtain somewhere.

http://www.americanthinker.com/2011/08/obama_the_affirmative_action_president.html

 

It is becoming apparent that the Malaysian 777 was probably high jacked to be used for terrorism.  If that is the case the terrorists will probably act fast. 

 

Mar 13  This bubble is getting ready to pop just like the Dot Com bubble did in 2000 and at the height of the Obama-Frank mortgage Liar Loan derivatives bubble in 2007.   Stock salesmen were saying stocks were fairly valued and earnings were increasing then too.  That was a lie then just as it is a lie today.  At the height of the housing bubble in 2006 the realtors were saying housing is the best buy too.  Come buy a home with 10% down and a low 3% interest mortgage and flip it and sell in with a 30% profit in three years.   Make 300% profit that way.  The reason it is a lie is because bubbles are not good investments they are all hot air with the values inflated by the fools who cannot tell the difference between real growth and just revenue growth based on borrowed money bidding up the price of equities.  Every sucker can make money by borrowing when stocks and real estate prices are rising because the Fed is pumping in $1.02Trillion per year or when the banks are loaning out $40 for every $1 they have in reserves because they ignore the fact that more than half the debt they hold for reserves is worthless.  Once the bubble pops corporations right and left declare bankruptcy and the implosion propagates usually for almost a year.  In 1929 the day before the market crashed a Princeton Professor announced that the market had achieved a new permanent high plateau.  57% of Americans realize we are still in a recession but the stock market is at the highs of 2000 and 2007 and the country is still going downhill with the socialists in power.

Obamascare and too many regulations have kept the economy stagnant for four years and had we elected Mitt Romney the economy would be almost completely recovered by now.

 

It is beginning to look like America’s the socialists will be run out of Washington during the next two years.  They had a chance and they gave us Liar-Loans to redistribute wealth, free cell-phone entitlements, and they broke the economy.  Republican David Jolly defeated Democrat Alex Sink in a Florida special election Tuesday that largely turned on the federal health care law, with both sides using the race to audition national strategies in one of the country's few competitive swing-voting districts.  Sink had outspent Jolly by more than 3 to 1 on television advertising,

http://www.cbsnews.com/news/republican-david-jolly-wins-special-congressional-election-in-florida/

http://abcnews.go.com/Politics/wireStory/health-care-law-1st-test-florida-election-22861028

 

Kudlow last night at 7:35 PM said Chief Justice Roberts should be ashamed of himself for calling Obamacrap a tax not an unconstitutional mandate.  He also complained about Obama’s Soviet Style central planning telling companies what to do by executive order.  That is coming from MSNBC the liberal side of the media.

 

Senate Intelligence Chair Dianne Feinstein (D-Calif.) accused the CIA of breaking the law by searching her committee's computers.  She knows that for sure because they had the CIA violate the US Constitution and break into the computers of NJ Governor Christy’s staff computers before the files were subpoenaed. That is what Obama and the Attorney General have been doing to harass all potential republican candidates.

 http://www.washingtonpost.com/world/national-security/feinstein-cia-searched-intelligence-committee-computers/2014/03/11/982cbc2c-a923-11e3-8599-ce7295b6851c_story.html 

 

Mar 12  How many assassination attempts has Putin had?  Hitler had 42.

Was Voltaire thinking of Putin when he said these things:

“It is forbidden to kill; therefore all murderers are punished unless they kill in large numbers and sound their trumpets.”

'The best government is a benevolent tyranny tempered by an occasional assassination.'

 

It seems Russia is in need of a change in leadership.

http://wiki.answers.com/Q/How_many_assassination_attempts_did_Hitler_have_on_his_life#slide=1&article=How_many_assassination_attempts_did_Hitler_have_on_his_life

http://topdocumentaryfilms.com/42-ways-to-kill-hitler/

http://www.omg-facts.com/Celebs/There-were-42-known-assassination-attemp/13096

 

The question:

“We have to pass it, to find out what’s in it.”

 A Doctor called-in first and said: "that's the definition of a stool sample."

Then Nancy Pelosi said: “that’s Obamascare!”

Who’s right?  The correct answer is:  They both are! 

http://www.google.com/imgres?sa=X&rlz=1T4NDKB_en___US566&biw=1518&bih=654&tbm=isch&tbnid

 

Socialism leads to equality of poverty and in Russia, China, and North Korea it led to starvation.  That is why any socialist or communist government with commissars which he calls Czars will coast an economy downhill until it hits a tree.  During the Russian Civil War, the White Army freedom fighters widely used the collective term commissars for their for the communist government ministers and political commissar in the military.  During the first Bush administration the leftist began short term appointment Czars.   Permanent White House staff was called staff.  Obama decided to call his permanent Commissars, Czars too rather than staff.   Only all of the 38 Obama appointed commissars were for permanent assignments without Senate confirmation.  For temporary assignments of a few months Eisenhower and Regan each appointed 1, and FDR appointed 11.  But Obama appointed 38 Commissars with unspecified terms without Senate approval.  And for the second time in history of America, a Democrat controlled Senate also uses a 50% majority to pass socialist legislation instead of the two thirds majority started under George Washington.  So now the Obama Senate can confirm any socialist or communist Commissars Obama wants.  But Obama does not want Americans to see his communists testifying before the Senate.  That is the only reason he calls his Commissars Czars.  We predict that when Obama retires he will write a disparaging book about America and boast about him being the first president with communist and Moslem roots.    

http://www.commieblaster.com/socialist_czars/

http://www.freerepublic.com/focus/news/2919893/posts

http://www.glennbeck.com/content/articles/article/198/29391/

 

Mar11   There is no question that salaries in some corporations are too high and are approaching levels of disparity that existed when the masses revolted and got out the guillotines.  A more humane approach would be to require each corporation compute an “Aristocracy index.”  It would be the highest corporate internal or external salary plus benefits and bonuses divided by the Median salary.  If any of the highest corporate Aristocracy exceed 50 times the median salary of the employees or employees of the foreign or domestic direct or indirect corporate suppliers. Then all the executives and directors are taxed at 90% of gross income. The intended consequence is that use of underpaid foreign labor will also reduce executive salaries, and if management is hired externally as consultants to avoid taxes, it does not matter, the highest internal or external management salary is used and lowest internal or external supply chain salary is used.  

 

The total USA national debt from the administration of George Washington to the end of the GW Bush administration was $6.3Trillion.  The deficit for Obama’s first term added $6.5Trillion to the US national debt.  Obama has set in motion a $19.5Trillion national debt before he leaves office.

 

Dr. Ben Carson speaks up for America

http://video.foxnews.com/v/3313865482001/dr-ben-carson-speaks-at-cpac/?playlist_id=928378949001#sp=show-clips

 

The White House is not concerned enough about the Ukraine crisis in Crimea to change any vacation plans.   The travel schedules of both the president and Vice President Biden were not altered. Obama went to Florida late Friday to spend the weekend in Key Largo, Fla.   Biden, meanwhile, went to the Virgin Islands.  Obama gets his vacation free because he claims he went to Florida for the weekend to visit a grade school.

 

World Economies

Mar 14

Russia warned that Ukraine’s government has lost control of the country.  The government of Ukraine made a big mistake by creating the government from the legislature instead of holding a free election.  Russia is not making that mistake.  However, if the Russian election in Crimea is honest it will be a close election.

 

Mar 12

China is beginning a major contraction.  China posted a $23 billion trade deficit. Exports fell 18.1% in February, surprising analysts as the world slides deeper into recession.

 

Mar 11

America can help Poland and other European countries become independent of Russia by drilling horizontally to extract oil, gasoline volatiles, and gas.

 

The amount of world debt has soared from $70 trillion to $100 trillion since 2007 as governments borrowed to keep their economies out of a general depression and companies took advantage of record low interest rates to borrow, leverage, and raise cash.

 

Spain’s state-backed development bank says the recovery in the euro region’s fourth-biggest economy is becoming speculative and the lender will shift its strategy to focus on quality now rather than quantity.

 

The French market has continued to decline since year 2000. At it most recent highs it is still is still down 50% from 2008 and down 60% from 2000.

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

 

Japan’s stock market appears to have topped and begun a new decline. It has declined since 1990 when it began Quantitative Easing.

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

 

The Swiss market still indicates stagnation since 2007. It has hit the highs of 2003 but could not make it to the highs of 2003. Obama has destroyed Swiss banking by attacking Swiss confidentiality that had protected people from the Hitlers and Stalins of the past. The Obama socialists are trying to legally confiscate everything people earn while lining the pockets of their friends with Ambassadorships and $billions in contracts for inept management of socialized medicine.  Look for world economies to soar when the socialists are no longer running America.

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

 

American Economy

Mar 11

Wholesale Inventories Jan 0.6% crept up from 0.3%

JOLTS - Job Openings Jan 3.974M down from 3.990M

Mar 12

MBA Mortgage Index 03/08 -2.1% plummeted from 9.4% ---

Crude Inventories 03/08 6.18M spiked up from 1.429M due to the slowdown.---

Mar 13

Initial Claims 03/08 315K down from 323K

Continuing Claims 03/01 2855K down from 2903K

Retail Sales Feb 0.3%  -0.6% -0.4% all estimated over the last 30 days---complete fraud or government incompetence.  The consistent numbers might have been

Retail Sales Feb 0.1%  up from -0.4% good++

Retail Sales ex-auto Feb 0.3% -0.3% 0.0% all estimated over the last 30 days---complete fraud or government incompetence. The consistent numbers might have been

Retail Sales ex-auto Feb 0.0% flat 0.0%

Export Prices ex-ag. Feb 0.6% up from 0.2%--- also ridiculous increase in one month

Import Prices ex-oil Feb -0.2% down from 0.3%  --- also ridiculous decrease in one month.

Business Inventories Jan 0.4% flat 0.5%

Treasury Budget Feb -$193.5B little changed -$203.5B

Mar 14

Inventories are fat so prices are coming down.

PPI Feb -0.1% prices dropping deflationary 0.2% ---

Core PPI Feb -0.2% 0dropping reduces income 0.2%---

 

The Markets

Mar 14

While the next correction probably will be large, the good news is that it is beginning to look like socialists in Congress may become extinct soon and socialized medicine will likely be scrapped.  If that is the case, then once again it will be good time to buy on the dip.

 

Mar 13  The largest U.S.-based companies added $206 billion to their stockpiles of offshore profits last year, parking earnings in low-tax countries until Congress gives them a reason not to.  That requires that all the moron leftists and socialists be cast out of Congress by the electorate so America can go back to being the land of opportunity only for people who like to work for a living.  For 230 years America provided charity for the people who could not work.  Emperor Obama decided to destroy American charity by taking away the one dollar tax deduction for every $10 people contribute. 

 

I hope everyone knows just how incredibly stupid this president’s administration is to not give a dollar off taxes to each taxpayer as an incentive to get $5 back for charities and schools from the American taxpayers. 

 

Instead this administration has hired known tax cheats and many that give nothing to charity.

 

However, there needs to be a law that only allows the deduction for public charities not political organizations and private charities that are not helping the poor.

 

Mar 12  Our cash flow indicator shows all the money that flowed out of the market in January is back in the market now.  No new money has entered the market.  Therefore to go any higher more cash inflow is necessary.  Unless cash enters the market now this will be the first time since July 2011 that this has happened.  At that time the NYSE market collapsed and hit the lowest cash point of March 2009 again while prices only dropped 25%.  In May of 2013 the market recovered the cash that had flowed out in 2009 and 2011 and since May of 2013 about 25% more cash entered to get us to the recent new highs which are about 20% higher now for the NYSE than in May of 2011. 

We estimate that 24% of the cash in the market that flowed out from June of 2007 and October of 2008 was lost causing market volume to plummet.  And today in March of 2014 about the same amount of cash is still in the market as just before the collapse in October of 2008.  The market was down for four months before most investor took note in 2007 that the bull market was over and was down for eight months when people panicked and sold out with 25% to 60% losses.

 

Therefore, we estimate that American stock market will fall about 40% but no more that 50% if we enter a bear market.  To trigger the bear market from where we are today takes a 15% to 20% correction.  But a 10% decline from here would likely give us a major sell signal.  We have sold everything now but defensive stocks.

 

Mar 11

Bloomberg reported that the SEC’s investigation is in the early stages, and the inquiry adds to European and U.S. regulatory probes of possible manipulation in currency markets. The Commodity Futures Trading Commission, which regulates foreign-exchange derivatives, is also investigating possible manipulation.

 

World bulk trade is still an Obama socialist economic poverty redistribution disaster. 

Look at the last 1+ years! Use the graph or snapshot option. Unfortunately they do not show back to 2008 when trade was five times higher than the Obama administration’s all time best world trade highs and 90% higher than today.

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

 

The volatility index is down because options traders have multiplied and they jump in when volatility is high.  Two years ago options trading profits exceeded stock profits.

Look at the volatility index and you see that the market could fall much faster. This is not a good moment in time for holding equities other than depressed commodities.

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

 

World market updates:

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

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