Banks and FED play a joke on taxpayers and investors called dial a profit.
Under Obama the banks can now pretty much dial any ostentatious profit they choose. How much money they invest is only limited to how much low interest taxpayer money they choose to borrow. As far as risk goes, they have none at this time. They invest in treasuries which then raise the money the FED uses to loan the banks even more money. It is not that Wall Street is filled with geniuses that makes banks like Goldman Sachs profitable. It is that government officials are so stupid in letting them be greedy and take bonuses while they do nothing to help homeowners who are underwater. Meanwhile banks have the homeowners as victims to milk dry with new forms of fixed charges. We have Obama to thank for all the new bank tricks used to make Americans late in payments so they can be charged bank interest that often exceeds 20% while banks only borrow at 0.5% interest at the expense of American taxpayers. We have Obama to thank for our failing infrastructure. The bridges around Boston are rusting and the concrete piers are crumbling exposing rusting steel reinforcing in the cement. The trillions of dollars are going down the rat-holes of socialist Obama experiments investing in the likes of ACORN, big unions and big corrupt banks with incompetent socialist executives who contribute millions to socialist candidates.
World Outlook
Week's Economic Calendar
Apr 19 Leading Indicators were higher again one of the indicators being incestuous as it is the Stock Market itself.
Yesterday:
Wall Street continues to spin profits seasonally adjusted or not depending on which fools investors more. Wall Street wants the companies to make optimistic predictions but Wall Street low balls its expectations to deceive investors into thinking times are booming. The economy is not booming but default rates are going down because banks are foreclosing at a faster rate now than ever before.
Apr 21 10:30 AM Crude Inventories 04/17
Apr 22 8:30 AM Initial Claims 04/17
Apr 22 8:30 AM Continuing Claims 04/10
Apr 22 8:30 AM PPI Mar
Apr 22 8:30 AM Core PPI Mar
Apr 22 10:00 AM Existing Home Sales Mar
Apr 22 10:00 AM FHFA Home Price Index Feb
Apr 23 8:30 AM Durable Orders Mar
Apr 23 8:30 AM Durable Orders ex auto Mar
Apr 23 10:00 AM New Home Sales Mar
Market Outlook April 21
Tuesday the broader NYSE rose modestly on 19 lower than normal volume again showing the stock market is extremely inflated and ready to drop. The volume corrected NYSE continues to be below the high that was first set in September of 2009.
World Markets
Asian markets were up slightly last night; Shanghai up 1.8%, Hong Kong down -0.5%, India up 0.1%, and Japan up 1.7%.
European markets are currently down in the range from -0.5% to --0.9 % this morning about half way through their day.
Today US pre-market futures are down about -0.2% at 7:00 AM EST.
John P. Hussman, Ph.D. this week says"
"As of last week, the stock market remained characterized by strenuous overvaluation, strenuous overbought conditions, overbullish sentiment, and hostile yield pressures. The fraud charges brought against Goldman Sachs by the SEC may or may not provide a catalyst for market weakness, but significant risk is already baked into observable market conditions. The present syndrome tends to be followed by large and abrupt losses (though with somewhat unpredictable timing). "
Wednesday, April 21, 2010
Friday, April 16, 2010
Rattner is just another example of the appointments Obama makes.
Steven Rattner, a founder of the Quadrangle Group joined the Obama administration as the car czar last year to help oversee the bailout of the automaker unions at General Motors and Chrysler. The Quadrangle Group has just agreed to settle a corruption investigation with Attorney General Andrew M. Cuomo’s office and the Securities and Exchange Commission. No current employees of Quadrangle were involved in the allegations just the former ones. The NY case involves bribing individuals close to the state’s former comptroller in order to convince the state to invest state employee pension money in their funds. But it involves corrupt pension, 401, and Roth pension dealings everywhere. Some Americans are restricted to investing their pensions in a small handful of thieving funds that pay little except for kickbacks and risk everything. Rattner is just another example of the appointments Obama makes. They all deserve prison.
“This case has started a national investigation of public pension funds all across the nation,” said Mr. Cuomo, the attorney general of New York State, in a media call. “A significant amount of this country’s wealth are in these public pension funds and I fear — seeing what we’ve seen in New York — that it’s going to be a serious problem for the nation.”
GE, Bank of America, Goldman, George Soros and the other Wall Street thieving socialists plunder America every day. GE/MSNBC/Pravda and Goldman had themselves declared banks in 2008 so that they could borrow at 0.5% interest to invest in risk free Treasury bonds paying them 2% to 4% (depending on the maturity length). Any moron in banking can dial in the profit they want now and future American grandchildren will be saddled with the national debt. The Banks of America continue to steal from taxpayers and contribute to the socialist candidates who allow this thievery to continue along with derivatives which the bankers themselves know are dangerously run by overpaid moral cretins.
Yet GE profit from continuing operations fell to $2.34 billion, or 21 cents a share, from $2.85 billion, or 26 cents, a year earlier, the Fairfield, Connecticut-based company said today as revenue declined 4.8 percent to $36.6 billion, trailing analysts’ projections. GE/MSNBC/Pravda continues to operate the world's largest socialist/fascist propaganda machine, MSNBC/Pravda. They would outlaw the American Tea Party if they could.
Google slumped 4.2 percent in early New York trading after the company said first-quarter costs rose 18 percent, double the increase in the previous period. Google's earnings disappointed since the masters of hype were indicating higher results ignoring the cost of the company’s expansion and the cyber attacks of Red China.
ConocoPhillips and Exxon Mobil Corp. retreated with oil prices.
World Outlook
China stopped approving permits to import soybean oil from Argentina, the world’s main supplier of the edible oil. China acted after the Argentina increased antidumping measures against Chinese imports. China dumps its products worldwide and reacts with trade wars when other nations resist the dumping.
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk City.
Week's Economic Calendar
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
The U.S. trade deficit, which measures the gap between national exports and imports, is up by 7.4% over the previous month. The trade deficit climbed to $39.7 billion as both imports increased at a greater rate than exports. This means the great projected American productivity increases that have been reported may not be real because if American productivity improved faster than the rest of the world the deficit would decline.
Retail sales rise a healthy 1.6%, average hourly earnings for US workers fell 0.2%, and consumer prices were up a slight 0.1 percent in March. FED's Beige Book indicated that the FED thinks the recovery has started and it is only eight months after Jimmy Cramer imagined the recovery started. The stock market predicted the recovery 13 months in advance.
Yesterday:
Unemployment claims
The Labor Department says first-time requests for jobless benefits rose to 484,000 last week, the highest level since late February. Economists were expecting claims to fall to 440,000. High unemployment is considered a key stumbling block to a strong, sustained economic recovery.
NY St Manufacturing Index
Industrial Production
RealtyTrac Inc reported this morning that the number of foreclosures in the first quarter surged 35% from the 1st quarter of last year. At the same time 16% more households were added to the list of those in default and now facing foreclosure. A RealyTrac executive said the U.S. is on track for more than a million repossessions this year.
Today:
Housing Starts
Consumer Sentiment
Market Outlook April 16
Yesterday the broader NYSE declined on sharply higher volume again showing the stock market is extremely inflated and ready to pop. Once again the volume corrected NYSE failed to set a new high since September 2009.
The NYSE closed down yesterday on sharply higher volume bouncing off the same highs of September 20 and January 11. The uncorrected NYSE has shown succeeding new highs just as the other narrow markets that manipulated volume. The NYSE volume may not be accurate but at least it is not completely fabricated as other volumes are. Most other indices do not report the volume of transactions in their own indices but rather just report NYSE volume for any index. Just look at what they report for the DOW, NASDAQ and S&P. Corrupt Wall Street now reports garbage rather than transaction value for most things. Wall Street is obviously defrauding the government by manipulating their tax obligations downward in addition to their highway robbery through the bailouts and stimulation package. And in return Wall Street is already heavily funding the democrat-socialists party for this November's elections.
Obama and the democrat-socialists have pumped up and set the stage for short sellers of every breed to sweep in and attack American investors. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry. Go look for yourself.
World Markets
Asian markets were down sharply over night; Shanghai down -1.1%, Hong Kong down -1.3%, India down -0.3%, and Japan down -1.5%.
European markets are again currently flat in the range from -0.1% to 1 % this morning about half way through their day.
Today US pre-market futures are down -0.1% to -0.3% at 8:00 AM EST.
We expect the markets to crack sharply soon under the uncertainty of higher taxes to cover socialist corruption and spending of $trillions on vote buying corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
America could very well have another Revolution or Civil War. If GE/MSNBC/Pravda and other America haters, thieves, corrupt politicians, indigents, socialist fascists, socialist communists, and socialist environmental morons lie and claim they are the majority and can re-write the American Constitution to legally steal from the productive Americans… then it is likely that true Americans will rise up and take back their country and purge the thieving tyrants. When America was created only productive Americans who owned property and contributed in good standing in the community were entitled to vote. Now felons in prison and the "incurable" community pedophiles down the street can vote while ACORN brown shirts stand outside and try to intimidate productive community members and even poll workers as they enter the buildings.
“This case has started a national investigation of public pension funds all across the nation,” said Mr. Cuomo, the attorney general of New York State, in a media call. “A significant amount of this country’s wealth are in these public pension funds and I fear — seeing what we’ve seen in New York — that it’s going to be a serious problem for the nation.”
GE, Bank of America, Goldman, George Soros and the other Wall Street thieving socialists plunder America every day. GE/MSNBC/Pravda and Goldman had themselves declared banks in 2008 so that they could borrow at 0.5% interest to invest in risk free Treasury bonds paying them 2% to 4% (depending on the maturity length). Any moron in banking can dial in the profit they want now and future American grandchildren will be saddled with the national debt. The Banks of America continue to steal from taxpayers and contribute to the socialist candidates who allow this thievery to continue along with derivatives which the bankers themselves know are dangerously run by overpaid moral cretins.
Yet GE profit from continuing operations fell to $2.34 billion, or 21 cents a share, from $2.85 billion, or 26 cents, a year earlier, the Fairfield, Connecticut-based company said today as revenue declined 4.8 percent to $36.6 billion, trailing analysts’ projections. GE/MSNBC/Pravda continues to operate the world's largest socialist/fascist propaganda machine, MSNBC/Pravda. They would outlaw the American Tea Party if they could.
Google slumped 4.2 percent in early New York trading after the company said first-quarter costs rose 18 percent, double the increase in the previous period. Google's earnings disappointed since the masters of hype were indicating higher results ignoring the cost of the company’s expansion and the cyber attacks of Red China.
ConocoPhillips and Exxon Mobil Corp. retreated with oil prices.
World Outlook
China stopped approving permits to import soybean oil from Argentina, the world’s main supplier of the edible oil. China acted after the Argentina increased antidumping measures against Chinese imports. China dumps its products worldwide and reacts with trade wars when other nations resist the dumping.
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk City.
Week's Economic Calendar
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
The U.S. trade deficit, which measures the gap between national exports and imports, is up by 7.4% over the previous month. The trade deficit climbed to $39.7 billion as both imports increased at a greater rate than exports. This means the great projected American productivity increases that have been reported may not be real because if American productivity improved faster than the rest of the world the deficit would decline.
Retail sales rise a healthy 1.6%, average hourly earnings for US workers fell 0.2%, and consumer prices were up a slight 0.1 percent in March. FED's Beige Book indicated that the FED thinks the recovery has started and it is only eight months after Jimmy Cramer imagined the recovery started. The stock market predicted the recovery 13 months in advance.
Yesterday:
Unemployment claims
The Labor Department says first-time requests for jobless benefits rose to 484,000 last week, the highest level since late February. Economists were expecting claims to fall to 440,000. High unemployment is considered a key stumbling block to a strong, sustained economic recovery.
NY St Manufacturing Index
Industrial Production
RealtyTrac Inc reported this morning that the number of foreclosures in the first quarter surged 35% from the 1st quarter of last year. At the same time 16% more households were added to the list of those in default and now facing foreclosure. A RealyTrac executive said the U.S. is on track for more than a million repossessions this year.
Today:
Housing Starts
Consumer Sentiment
Market Outlook April 16
Yesterday the broader NYSE declined on sharply higher volume again showing the stock market is extremely inflated and ready to pop. Once again the volume corrected NYSE failed to set a new high since September 2009.
The NYSE closed down yesterday on sharply higher volume bouncing off the same highs of September 20 and January 11. The uncorrected NYSE has shown succeeding new highs just as the other narrow markets that manipulated volume. The NYSE volume may not be accurate but at least it is not completely fabricated as other volumes are. Most other indices do not report the volume of transactions in their own indices but rather just report NYSE volume for any index. Just look at what they report for the DOW, NASDAQ and S&P. Corrupt Wall Street now reports garbage rather than transaction value for most things. Wall Street is obviously defrauding the government by manipulating their tax obligations downward in addition to their highway robbery through the bailouts and stimulation package. And in return Wall Street is already heavily funding the democrat-socialists party for this November's elections.
Obama and the democrat-socialists have pumped up and set the stage for short sellers of every breed to sweep in and attack American investors. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry. Go look for yourself.
World Markets
Asian markets were down sharply over night; Shanghai down -1.1%, Hong Kong down -1.3%, India down -0.3%, and Japan down -1.5%.
European markets are again currently flat in the range from -0.1% to 1 % this morning about half way through their day.
Today US pre-market futures are down -0.1% to -0.3% at 8:00 AM EST.
We expect the markets to crack sharply soon under the uncertainty of higher taxes to cover socialist corruption and spending of $trillions on vote buying corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
America could very well have another Revolution or Civil War. If GE/MSNBC/Pravda and other America haters, thieves, corrupt politicians, indigents, socialist fascists, socialist communists, and socialist environmental morons lie and claim they are the majority and can re-write the American Constitution to legally steal from the productive Americans… then it is likely that true Americans will rise up and take back their country and purge the thieving tyrants. When America was created only productive Americans who owned property and contributed in good standing in the community were entitled to vote. Now felons in prison and the "incurable" community pedophiles down the street can vote while ACORN brown shirts stand outside and try to intimidate productive community members and even poll workers as they enter the buildings.
Thursday, April 15, 2010
Only 47% of Americans still pay federal taxes, 40% actually get money back by filing for credits while giving nothing.
Only 47% of Americans still pay federal taxes, 40% actually get money back by filing for credits while giving nothing.
Louisiana Senator, Mary Landrieu (D) asked Congress for 250 billion dollars to rebuild New Orleans. If you are one of the lucky 484,674 residents of New Orleans (every man, woman, and child)
You each get $516,528. Or... if you have one of the 188,251 homes in New Orleans, your home gets $1,329,787. Or... If you are a family of four...your family gets $2,066,012. This is part of the corruption of the Obama regime.
When the socialists put together their coalition of unions, state and federal workers, and that indigent 40% who pay no taxes but file anyway to get a share of your money then it will be the end of the American Republic and the beginning of yet another corrupt banana republic. Remember only thieves think your money is their money to spend.
World Outlook
China stopped approving permits to import soybean oil from Argentina, the world’s main supplier of the edible oil. China acted after the Argentina increased antidumping measures against Chinese imports. China dumps its products worldwide and reacts with trade wars when other nations resist the dumping.
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk City.
Week's Economic Calendar
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
The U.S. trade deficit, which measures the gap between national exports and imports, is up by 7.4% over the previous month. The trade deficit climbed to $39.7 billion as both imports increased at a greater rate than exports. This means the great projected American productivity increases that have been reported may not be real because if American productivity improved faster than the rest of the world the deficit would decline.
Yesterday:
Retail sales rise a healthy 1.6%, average hourly earnings for US workers fell 0.2%, and consumer prices were up a slight 0.1 percent in March. FED's Beige Book indicated that the FED thinks the recovery has started and it is only eight months after Jimmy Cramer imagined the recovery started. The stock market predicted the recovery 13 months in advance.
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 15
The market went up yesterday to touch its earlier two highs (prices adjusted for volume). The cause was the corruption of Wall Street by the FED flooding Wall Street with taxpayer dollars. Wall Street returns the corrupt favor by pay themselves obscene bonuses. Congress responds by steal more money for their salaries and expenses such as having three Airforce jets take family members on vacations. The way the Obama Regime funnels the money to corrupted institutions is by letting the corrupt cohorts borrow taxpayer money at 0.5% interest and then invest the virtually free money in Treasury bonds at close to 4% interest. That amounts to free, risk free money direct from American taxpayer wallets. And only 47% of American are currently taxpayers. Obama is slowly destroying America by essentially giving away treasury bonds free to corrupt Wall Street who contribute heavily to the campaigns of the corrupt democrat-socialist congressional elite. That is highway robbery and will bankrupt America as fewer and fewer people pay taxes. The IRS is now going after small businessmen who handle a lot of cash. The growing American underground economy and black market is the result of Americans coping what Europeans do in socialist countries to avoid being mugged at tax time every year.
The market rose yesterday on Morgan Stanley's obscene profits from the FED's corruption of Wall Street. The truth is that the management of Morgan Stanley is one of the most incompetent as well as corrupt. Morgan Stanley, which once stupidly ran the biggest property-investment arm among Wall Street banks, expects to lose another $5.4 billion, or 61 percent, of its $8.8 billion global fund from 2007. Things were so bad last year that the profit gains this year are exaggerated to be up 55%, so incompetent and corrupt Wall Street, flush with all the free FED cash pumped more of their borrowed taxpayer money into the stock market. Yes, Wall Street does not have to invest the money they borrow in risk free treasuries. They also buy stocks that are overpriced today just as they financed mortgages by indigents for homes that were overpriced in 2006 and 2007. A stock market crash now would increase the US debt burden enormously because this whole 13-month premature stock rally has been taxpayer financed with the FED stimulus package. It is the dumbest thing Obama and the FED have done to date.
The NYSE closed up yesterday on higher volume for the first time in a week sending the volume corrected NYSE back to the same highs of September 20 and January 11. The uncorrected NYSE has shown succeeding new highs just as the other markets. The NYSE volume may not be accurate but at least it is no completely fabricated as other volumes are. Most other indices do not report the volume of transactions in their own indices but rather just report NYSE volume for any index. Just look at what they report for the DOW, NASDAQ and S&P. Corrupt Wall Street now reports garbage rather than transaction value for most things. Wall Street is obviously defrauding the government by manipulating their tax obligations downward in addition to their highway robbery through the bailouts and stimulation package.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
World Markets
Asian markets were flat over night; Shanghai down -0.1%, Hong Kong up 0.2%, India down -1%, and Japan up 0.6%.
European markets are currently flat in the range from -0.1% to 1 % this morning about half way through their day.
Today US pre-market futures are down 0.2% to 0.3% at 8:30 AM EST. We expect the markets to crack sharply soon under the uncertainty of higher taxes to cover socialist corruption and spending of $trillions on vote buying corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
Louisiana Senator, Mary Landrieu (D) asked Congress for 250 billion dollars to rebuild New Orleans. If you are one of the lucky 484,674 residents of New Orleans (every man, woman, and child)
You each get $516,528. Or... if you have one of the 188,251 homes in New Orleans, your home gets $1,329,787. Or... If you are a family of four...your family gets $2,066,012. This is part of the corruption of the Obama regime.
When the socialists put together their coalition of unions, state and federal workers, and that indigent 40% who pay no taxes but file anyway to get a share of your money then it will be the end of the American Republic and the beginning of yet another corrupt banana republic. Remember only thieves think your money is their money to spend.
World Outlook
China stopped approving permits to import soybean oil from Argentina, the world’s main supplier of the edible oil. China acted after the Argentina increased antidumping measures against Chinese imports. China dumps its products worldwide and reacts with trade wars when other nations resist the dumping.
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk City.
Week's Economic Calendar
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
The U.S. trade deficit, which measures the gap between national exports and imports, is up by 7.4% over the previous month. The trade deficit climbed to $39.7 billion as both imports increased at a greater rate than exports. This means the great projected American productivity increases that have been reported may not be real because if American productivity improved faster than the rest of the world the deficit would decline.
Yesterday:
Retail sales rise a healthy 1.6%, average hourly earnings for US workers fell 0.2%, and consumer prices were up a slight 0.1 percent in March. FED's Beige Book indicated that the FED thinks the recovery has started and it is only eight months after Jimmy Cramer imagined the recovery started. The stock market predicted the recovery 13 months in advance.
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 15
The market went up yesterday to touch its earlier two highs (prices adjusted for volume). The cause was the corruption of Wall Street by the FED flooding Wall Street with taxpayer dollars. Wall Street returns the corrupt favor by pay themselves obscene bonuses. Congress responds by steal more money for their salaries and expenses such as having three Airforce jets take family members on vacations. The way the Obama Regime funnels the money to corrupted institutions is by letting the corrupt cohorts borrow taxpayer money at 0.5% interest and then invest the virtually free money in Treasury bonds at close to 4% interest. That amounts to free, risk free money direct from American taxpayer wallets. And only 47% of American are currently taxpayers. Obama is slowly destroying America by essentially giving away treasury bonds free to corrupt Wall Street who contribute heavily to the campaigns of the corrupt democrat-socialist congressional elite. That is highway robbery and will bankrupt America as fewer and fewer people pay taxes. The IRS is now going after small businessmen who handle a lot of cash. The growing American underground economy and black market is the result of Americans coping what Europeans do in socialist countries to avoid being mugged at tax time every year.
The market rose yesterday on Morgan Stanley's obscene profits from the FED's corruption of Wall Street. The truth is that the management of Morgan Stanley is one of the most incompetent as well as corrupt. Morgan Stanley, which once stupidly ran the biggest property-investment arm among Wall Street banks, expects to lose another $5.4 billion, or 61 percent, of its $8.8 billion global fund from 2007. Things were so bad last year that the profit gains this year are exaggerated to be up 55%, so incompetent and corrupt Wall Street, flush with all the free FED cash pumped more of their borrowed taxpayer money into the stock market. Yes, Wall Street does not have to invest the money they borrow in risk free treasuries. They also buy stocks that are overpriced today just as they financed mortgages by indigents for homes that were overpriced in 2006 and 2007. A stock market crash now would increase the US debt burden enormously because this whole 13-month premature stock rally has been taxpayer financed with the FED stimulus package. It is the dumbest thing Obama and the FED have done to date.
The NYSE closed up yesterday on higher volume for the first time in a week sending the volume corrected NYSE back to the same highs of September 20 and January 11. The uncorrected NYSE has shown succeeding new highs just as the other markets. The NYSE volume may not be accurate but at least it is no completely fabricated as other volumes are. Most other indices do not report the volume of transactions in their own indices but rather just report NYSE volume for any index. Just look at what they report for the DOW, NASDAQ and S&P. Corrupt Wall Street now reports garbage rather than transaction value for most things. Wall Street is obviously defrauding the government by manipulating their tax obligations downward in addition to their highway robbery through the bailouts and stimulation package.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
World Markets
Asian markets were flat over night; Shanghai down -0.1%, Hong Kong up 0.2%, India down -1%, and Japan up 0.6%.
European markets are currently flat in the range from -0.1% to 1 % this morning about half way through their day.
Today US pre-market futures are down 0.2% to 0.3% at 8:30 AM EST. We expect the markets to crack sharply soon under the uncertainty of higher taxes to cover socialist corruption and spending of $trillions on vote buying corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
Wednesday, April 14, 2010
The worse things are the more things appear to improve.
The worse things are the more things appear to improve. Take an extra $100 profit. Two years ago when you and your neighbor typically made $1000 that additional profit was only 10%. But last year your profit declined over 90% to just $100 but your neighbor still made $1000 so your stocks took a big hit and your neighbor's took a hit too because everyone expected his sales would soon take a hit too. But this year your profit doubled to $200 and your neighbors profit stayed the same at$1000. Now your stock is soaring because the wizards of Wall Street say you are having a "V" shaped recovery of 100% and your neighbor is stagnating.
So you can see how Wall Street makes large judgement errors based on the numbers bbecause they fail to understand the mathematics. Basically the more crippled a corporation is without running completely into the red, the more Wall Street thinks it is a growth stock, and the worse the recession becomes the more Jim Cramer and GE/MSNBC/PRAVDA can hype and say the recovery is "V" shaped. And hence stocks right now are significantly overpriced because those 100% growth rates mean those companies are very nearly worthless. The junk stocks are selling at a premium. Alcoa still reported a loss but when it reports a small profit the future profits will be distorted as huge because Alco had fallen so far into losses. Beware of the many many stocks like PALM and BOOM where bad management is sucking out the last lifeblood of those stocks. Insider selling is not the only problem. At BOOM the insiders are buying but at zero dollars a share therby diluting the stock the more they buy.
World Outlook
Brazilian billionaire Eike Batista cancelled his planned initial public offering of holding company EBX Group Ltd. after raising $3.9 billion less than he first sought from the sale of shipbuilding unit OSX Brasil SA.
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk.
Week's Economic Calendar
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
Yesterday:
The U.S. trade deficit, which measures the gap between national exports and imports, is up by 7.4% over the previous month. The trade deficit climbed to $39.7 billion as both imports increased at a greater rate than exports. This means the great projected American productivity increases that have been reported may not be real because if American productivity improved faster than the rest of the world the deficit would decline.
Wednesday, April 14:
Consumer Price Index
Retail Sales
FED's Beige Book
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 14
Alcoa reported continuing losses as cutbacks in costs are no longer effective and could cause longer term corporate losses. Revenues continued to fall.
Palm hired lawyers yesterday to take it through bankruptcy court and possibly a buy-out or dismemberment.
Morgan Stanley, which once ran the biggest property-investment arm among Wall Street banks, expects to lose $5.4 billion, or 61 percent, of its $8.8 billion global fund from 2007, said a person familiar with the situation. However things were so bad last year that the profit gains this year are exaggerated to be up 55%,
The NYSE closed down yesterday on increased volume again confirming the topping out of the American stock markets. The Dow index did not take off when it broke through 1000. On a volume-adjusted basis the market has not had a new top since the end of September. On a volume adjusted basis it is still more than 1% lower than last September.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican National Committee is yet another big spender and is destroying the Republicans from the inside as GOP big spending on nude bar scenes turns off contributors. Now leftists claim he is being picked on because of his color not because he has not been raising money for candidate. Candidates are now soliciting for themselves. The Republicans are broke and the leftist loonies love it.
World Markets
Asian markets were flat over night; Shanghai up 0.2%, Hong Kong up 0.1%, India down -0.2%, and Japan up 0.4%.
European markets are currently up in the range from 0.8% to 1 % this morning about half way through their day.
Today US pre-market futures are up 0.2% to 0.4% at 8:30 AM EST. We expect the markets to crack soon under the uncertainty of higher taxes to cover socialist spending of $trillions on vote buying corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions). Now is a good time for smaller investors to buy a home and participate in the next housing bubble. Back in 2006 we advised that the housing bubble was peaking. It will take five more years for the bubble to begin expanding faster and up to 2020 to 2025 for the housing market to peak again. We believe that under leftist regimes the stock market will not rise more than inflation during this period.
So you can see how Wall Street makes large judgement errors based on the numbers bbecause they fail to understand the mathematics. Basically the more crippled a corporation is without running completely into the red, the more Wall Street thinks it is a growth stock, and the worse the recession becomes the more Jim Cramer and GE/MSNBC/PRAVDA can hype and say the recovery is "V" shaped. And hence stocks right now are significantly overpriced because those 100% growth rates mean those companies are very nearly worthless. The junk stocks are selling at a premium. Alcoa still reported a loss but when it reports a small profit the future profits will be distorted as huge because Alco had fallen so far into losses. Beware of the many many stocks like PALM and BOOM where bad management is sucking out the last lifeblood of those stocks. Insider selling is not the only problem. At BOOM the insiders are buying but at zero dollars a share therby diluting the stock the more they buy.
World Outlook
Brazilian billionaire Eike Batista cancelled his planned initial public offering of holding company EBX Group Ltd. after raising $3.9 billion less than he first sought from the sale of shipbuilding unit OSX Brasil SA.
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk.
Week's Economic Calendar
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
Yesterday:
The U.S. trade deficit, which measures the gap between national exports and imports, is up by 7.4% over the previous month. The trade deficit climbed to $39.7 billion as both imports increased at a greater rate than exports. This means the great projected American productivity increases that have been reported may not be real because if American productivity improved faster than the rest of the world the deficit would decline.
Wednesday, April 14:
Consumer Price Index
Retail Sales
FED's Beige Book
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 14
Alcoa reported continuing losses as cutbacks in costs are no longer effective and could cause longer term corporate losses. Revenues continued to fall.
Palm hired lawyers yesterday to take it through bankruptcy court and possibly a buy-out or dismemberment.
Morgan Stanley, which once ran the biggest property-investment arm among Wall Street banks, expects to lose $5.4 billion, or 61 percent, of its $8.8 billion global fund from 2007, said a person familiar with the situation. However things were so bad last year that the profit gains this year are exaggerated to be up 55%,
The NYSE closed down yesterday on increased volume again confirming the topping out of the American stock markets. The Dow index did not take off when it broke through 1000. On a volume-adjusted basis the market has not had a new top since the end of September. On a volume adjusted basis it is still more than 1% lower than last September.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican National Committee is yet another big spender and is destroying the Republicans from the inside as GOP big spending on nude bar scenes turns off contributors. Now leftists claim he is being picked on because of his color not because he has not been raising money for candidate. Candidates are now soliciting for themselves. The Republicans are broke and the leftist loonies love it.
World Markets
Asian markets were flat over night; Shanghai up 0.2%, Hong Kong up 0.1%, India down -0.2%, and Japan up 0.4%.
European markets are currently up in the range from 0.8% to 1 % this morning about half way through their day.
Today US pre-market futures are up 0.2% to 0.4% at 8:30 AM EST. We expect the markets to crack soon under the uncertainty of higher taxes to cover socialist spending of $trillions on vote buying corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions). Now is a good time for smaller investors to buy a home and participate in the next housing bubble. Back in 2006 we advised that the housing bubble was peaking. It will take five more years for the bubble to begin expanding faster and up to 2020 to 2025 for the housing market to peak again. We believe that under leftist regimes the stock market will not rise more than inflation during this period.
Tuesday, April 13, 2010
Socialism is government of the corrupt, by the corrupt, for the corrupt.
How do you know who are the thieves. The thieves say your money is their money. Does that sound familiar?
Big government becomes contemptuous. It institutionalizes theft from productive people by government employees for government employees, unions, and a permanent sub class. The leftists want and create a permanent subclass of lazy uneducated people who will vote in socialists who share the wealth of the hard working Americans. They make up lies about how illegals work so hard. The fact is the only hard work they do is crossing the desert to enter America. Only leftist socialists hire illegal immigrants. No honest Americans hire illegals so if illegals ever are abused it is by corrupt socialists who hire them. Note that all the disclosures of new government appointments with having illegal alien housekeepers or having evaded taxes were socialist-democrat appointments. Good Americans do not exploit people so they have nothing to do with illegal immigrants.
Because socialism is institutionalized theft of the value of works of the creative and productive few it is quite natural for liberal leftists to think everyone is a thief not just they themselves. If everyone is a thief then it also naturally falls out that the money a thief has is not his own money. That is why Obama's economists declare that the money you accumulate is not yours. They assume you did not earn it just as they in their lavish life styles did not earn their money. They got their big bonuses because they knew or married a Senator who earmarked millions of dollars to the hospital at which you worked. We all know the end of this story. This story always ends with the newly socialized country going down the drain.
World Outlook
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk.
Week's Economic Calendar
Yesterday
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
Tuesday, April 13:
U.S. Trade deficit
Wednesday, April 14:
Consumer Price Index
Retail Sales
FED's Beige Book
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 13
Alcoa reported continuing losses as cutbacks in costs are no longer effective and could cause longer term corporate losses. Revenues continued to fall.
Palm hired lawyers yesterday to take it through bankruptcy court and possibly a buy-out or dismemberment.
The markets closed up very slightly again on average volume confirming the topping out of the American stock markets. The Dow index did not take off when it broke through 1000. On a volume-adjusted basis the market has not had a new top since the end of September. On a volume adjusted basis it is still more than 1% lower than last September.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican National Committee is yet another big spender and is destroying the Republicans from the inside as GOP big spending on nude bar scenes turns off contributors. Now leftists claim he is being picked on because of his color not because he has not been raising money for candidate. Candidates are now soliciting for themselves. The Republicans are broke and the leftist loonies love it.
World Markets
Asian markets were down over night; Shanghai up 1%, Hong Kong down -0.2%, India down -0.2%, and Japan down -0.8%.
European markets are currently down in the range from 0% to -0.4 % this morning about half way through their day.
Today US pre-market futures are down about -0.3% at 8 AM EST. We expect the markets to crack soon under the uncertainty of higher taxes to cover socialist spending of $trillions on corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions). Now is a good time for smaller investors to buy a home and participate in the next housing bubble. Back in 2006 we advised that the housing bubble was peaking. It will take five more years for the bubble to begin expanding faster and up to 2020 to 2025 for the housing market to peak again. We believe that under leftist regimes the stock market will not rise more than inflation during this period.
How do you know who are the thieves. The thieves say your money is their money. Does that sound familiar?
Big government becomes contemptuous. It institutionalizes theft from productive people by government employees for government employees, unions, and a permanent sub class. The leftists want and create a permanent subclass of lazy uneducated people who will vote in socialists who share the wealth of the hard working Americans. They make up lies about how illegals work so hard. The fact is the only hard work they do is crossing the desert to enter America. Only leftist socialists hire illegal immigrants. No honest Americans hire illegals so if illegals ever are abused it is by corrupt socialists who hire them. Note that all the disclosures of new government appointments with having illegal alien housekeepers or having evaded taxes were socialist-democrat appointments. Good Americans do not exploit people so they have nothing to do with illegal immigrants.
Because socialism is institutionalized theft of the value of works of the creative and productive few it is quite natural for liberal leftists to think everyone is a thief not just they themselves. If everyone is a thief then it also naturally falls out that the money a thief has is not his own money. That is why Obama's economists declare that the money you accumulate is not yours. They assume you did not earn it just as they in their lavish life styles did not earn their money. They got their big bonuses because they knew or married a Senator who earmarked millions of dollars to the hospital at which you worked. We all know the end of this story. This story always ends with the newly socialized country going down the drain.
World Outlook
Doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk.
Week's Economic Calendar
Yesterday
Fear of the stock and bond markets increased demand for safe treasuries consequently the Treasury Department auction of $26 billion in three-month bills ran at a discount rate of 0.155 percent. That's down from 0.175 percent last week and the lowest in two weeks. Another $27 billion in six-month bills was auctioned at a discount rate of 0.240 percent. That's below last week's 0.265 percent and the lowest since March 8.
On the other hand inflation continues to drive up rates on longer-term securities. The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0.47 percent last week from 0.43 percent the previous week.
The National Federation of Independent (small) Business’s optimism index dropped to 86.8 last month from 88 in February indicating that confidence among U.S. small businesses fell to the lowest level since July 2009. Executives grew more concerned about earnings and sales and seven of the index’s 10 components declined from February with only one advancing. The measure of earnings expectations showed the biggest decline in March, dropping 4 points to minus 43 percent. Thirty- four percent of respondents cited “poor sales” as the top business concern, the same as in February, and the net percent of owners projecting higher sales, adjusting for inflation, fell to minus 3 percent.
Tuesday, April 13:
U.S. Trade deficit
Wednesday, April 14:
Consumer Price Index
Retail Sales
FED's Beige Book
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 13
Alcoa reported continuing losses as cutbacks in costs are no longer effective and could cause longer term corporate losses. Revenues continued to fall.
Palm hired lawyers yesterday to take it through bankruptcy court and possibly a buy-out or dismemberment.
The markets closed up very slightly again on average volume confirming the topping out of the American stock markets. The Dow index did not take off when it broke through 1000. On a volume-adjusted basis the market has not had a new top since the end of September. On a volume adjusted basis it is still more than 1% lower than last September.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican National Committee is yet another big spender and is destroying the Republicans from the inside as GOP big spending on nude bar scenes turns off contributors. Now leftists claim he is being picked on because of his color not because he has not been raising money for candidate. Candidates are now soliciting for themselves. The Republicans are broke and the leftist loonies love it.
World Markets
Asian markets were down over night; Shanghai up 1%, Hong Kong down -0.2%, India down -0.2%, and Japan down -0.8%.
European markets are currently down in the range from 0% to -0.4 % this morning about half way through their day.
Today US pre-market futures are down about -0.3% at 8 AM EST. We expect the markets to crack soon under the uncertainty of higher taxes to cover socialist spending of $trillions on corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits. The purpose of socialists is to first create a class society to divide the nation and then fuse the criminal, corrupt, and indolent segments into a permanent subclass. Next they encourage the growth of the subclass by boosting illegal immigration from Haiti, Mexico and other failed welfare states with the promise of citizenship and a comparative life of luxury on the dole.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions). Now is a good time for smaller investors to buy a home and participate in the next housing bubble. Back in 2006 we advised that the housing bubble was peaking. It will take five more years for the bubble to begin expanding faster and up to 2020 to 2025 for the housing market to peak again. We believe that under leftist regimes the stock market will not rise more than inflation during this period.
Monday, April 12, 2010
Socialism is institutionalized theft.
Because socialism is institutionalized theft of the value of works of the creative and productive few it is quite natural for liberal leftists to think everyone is a thief not just they themselves. If everyone is a thief then it also naturally falls out that the money a thief has is not his own money. That is why Obama's economists declare that the money you accumulate is not yours. They assume you did not earn it just as they in their lavish life styles did not earn their money. They got their big bonuses because they knew or married a Senator who earmarked millions of dollars to the hospital at which you worked. The hospital then gave you (for instance Obama's wife) a fancy title, quadrupled your salary and you then went on to tap other government officials for more taxpayer money to justify the salary you got. Our founding fathers would say the senator who earmarked millions to his wife's employer was corrupt. They would say the political hospital administration was knowingly corrupt in rewarding the Senators wife for bringing in the free no-strings attached tax payer money that beats having to earn it legally. It is legal in the corrupt situation that our socialist "majority" government finds itself in. After all this, the president doesn't like the Constitution that protects the citizen taxpayers from the government. He wants a pro-active American Constitution that creates socialism for the majority to bleed the creative and enterprising Americans dry.
We all know the end of this story. This story always ends with the newly socialized country going down the drain.
World Outlook
The Baltic Dry index measures the health of world trade continues a serious decline that no doubt is why Jim Cramer has been ignoring this favorite indicator he uses. It means world trade is slowing,
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND
Last week the interest Greece had to pay on Greek bonds spiked to over 7% more than doubling the cost of carrying debt for Greece. A euro zone deal was then arranged for a huge standby rescue package for Greece, slashing the debt-laden country's borrowing costs and buying its stocks and bonds. The yield on short-dated Greek government bonds then fell by over a point to around 5.9 percent.
However, doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk.
Week's Economic Calendar
Monday, April 12:
6month Treasury bill
Tuesday, April 13:
U.S. Trade deficit
Wednesday, April 14:
Consumer Price Index
Retail Sales
FED's Beige Book
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 12
The market closed up yet again on lower volume confirming the topping out of the American stock markets. The Dow index did not take off when it broke through 1000. On a volume-adjusted basis the market has not had a new top since the end of September. On a volume adjusted basis it is still more than 1% lower than last September.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican National Committee is yet another big spender and is destroying the Republicans from the inside as GOP big spending on nude bar scenes turns off contributors. Now leftists claim he is being picked on because of his color not because he has not been raising money for candidate. Candidates are now soliciting for themselves. The Republicans are broke and the leftist loonies love it.
World Markets
Asian markets were down over night; Shanghai down -0.5%, Hong Kong down -0.3%, India down -0.5%, and Japan up 0.4%.
European markets are currently flat in the range from 0% to -0.1 % this morning about half way through their day.
Today US pre-market futures are up about 0.6% at 7:30 AM EST. We expect the markets to crack soon under the uncertainty of higher taxes to cover socialist spending of $trillions on corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions). Now is a good time for smaller investors to buy a home and participate in the next housing bubble. Back in 2006 we advised that the housing bubble was peaking. It will take five more years for the bubble to begin expanding faster and up to 2020 to 2025 for the housing market to peak again. We believe that under leftist regimes the stock market will not rise more than inflation during this period.
We all know the end of this story. This story always ends with the newly socialized country going down the drain.
World Outlook
The Baltic Dry index measures the health of world trade continues a serious decline that no doubt is why Jim Cramer has been ignoring this favorite indicator he uses. It means world trade is slowing,
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND
Last week the interest Greece had to pay on Greek bonds spiked to over 7% more than doubling the cost of carrying debt for Greece. A euro zone deal was then arranged for a huge standby rescue package for Greece, slashing the debt-laden country's borrowing costs and buying its stocks and bonds. The yield on short-dated Greek government bonds then fell by over a point to around 5.9 percent.
However, doubts remained as to whether the weakest of the European currency's 16 members would actually get the bailout fund much less be able to manage its 300 billion euro debt. A similar situation exists for the states of Kalifornia and New Yawk.
Week's Economic Calendar
Monday, April 12:
6month Treasury bill
Tuesday, April 13:
U.S. Trade deficit
Wednesday, April 14:
Consumer Price Index
Retail Sales
FED's Beige Book
Thursday, April 15:
Unemployment claims
NY St Manufacturing Index
Industrial Production
Friday, April 16:
Housing Starts
Consumer Sentiment
Market Outlook April 12
The market closed up yet again on lower volume confirming the topping out of the American stock markets. The Dow index did not take off when it broke through 1000. On a volume-adjusted basis the market has not had a new top since the end of September. On a volume adjusted basis it is still more than 1% lower than last September.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock instead. The management of BOOM is slowly milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican National Committee is yet another big spender and is destroying the Republicans from the inside as GOP big spending on nude bar scenes turns off contributors. Now leftists claim he is being picked on because of his color not because he has not been raising money for candidate. Candidates are now soliciting for themselves. The Republicans are broke and the leftist loonies love it.
World Markets
Asian markets were down over night; Shanghai down -0.5%, Hong Kong down -0.3%, India down -0.5%, and Japan up 0.4%.
European markets are currently flat in the range from 0% to -0.1 % this morning about half way through their day.
Today US pre-market futures are up about 0.6% at 7:30 AM EST. We expect the markets to crack soon under the uncertainty of higher taxes to cover socialist spending of $trillions on corruption rather than infrastructure. Most of the government spending is on false starts like uneconomical wind and solar power and unaffordable things like battery powered GM cars and GM union benefits.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions). Now is a good time for smaller investors to buy a home and participate in the next housing bubble. Back in 2006 we advised that the housing bubble was peaking. It will take five more years for the bubble to begin expanding faster and up to 2020 to 2025 for the housing market to peak again. We believe that under leftist regimes the stock market will not rise more than inflation during this period.
Friday, April 9, 2010
Socialism is sustained by giving a majority of voters free passes called entitlements to live off the work of others.
You and all the other fools who work, invent and create are like the educated Greek slaves who enabled the Roman Empire to run. There are always many entitlements of the majority. First there are always the corrupt and decadent government comprised of the chief of state and a senate. Then there are the government workers where the motto is, "It is not what you know not who you know that counts."
The unions have the political entailment to select the arbitrators who determine the limits to which State and City workers can bleed state and city taxpayers. Those state and city entitlements are what give us a look at the future of America under socialism because the leftists tend to be concentrated in major cities and states like NYC and California which were once areas of capital formation. They are attracted to wealth just like any thief is. Once in the late 1800's Rhode Island's city of Newport was the wealthiest city because it was a beautiful coastline where the wealthy vacationed. The leftists took over the city and state and all the wealthy gave up and moved out. Now Rhode Island ranks with the poorest in wealth and education in the USA. Once America attracted the ambitious and idealistic poor of the old socialist European countries who were brave enough to be pioneers in a new world and make it on their own. Today the leftists have opened the flood gates from places where people reject the old American work ethic, do not seek to educate themselves, and refuse to learn the language Americans have spoken since the Pilgrims. Americans are becoming the servants of a majority of voters who are leftist socialists and for the most part pay little or no taxes because they feel entitled to homes and a life style that true Americans like you must support as their indentured servants (like the educated Greek slaves of old).
It is quite possible to educate this mass of indolent leftists but not when they are entitled to everything based on the laws made by leftists and socialists. We must have the American laws that that the Pilgrims had. The pilgrims tried a Christian style of socialism where everyone was supposed to work according to their ability and could share in the harvest of the community. Under Pilgrim socialism many shirked their work claiming age or infirmities made work too inhumane for them. The next season the American Pilgrims switched from socialism to free enterprise and the community law became unto each according to his works or as the charity of others provided. The socialist's entitlement to charity was gone and the Pilgrims survived and Americans used their surplus wealth to be the most charitable nation in the world.
The left spreads lies and says America is not charitable. But all we need to do is look at America before the leftist socialists began taking power and you see Americans were much more charitable. After WWI America sunk $billions into Western Europe while the Communists stripped East Germany of its machinery and kidnapped German scientists as a slave source of manpower to develop jets, rockets, and nuclear weapons under communists who took all the credit. Eventually Eastern Europe was starving and America was shipping them free grain to eat. But the Communists re-bagged the wheat and then demanded that the bags not be labeled as coming from America. Leftists and socialists are the world's best liars because no one would listen to them if they knew the truth. Today they want everyone to say nice things about them and the Moslem terrorists who want to kill all Jews and Americans. They hate the American Tea Party movement and call them haters because there just are no nice words to describe leftists and socialists if you wish to speak truthfully.
The whole reason for politically correct speech is to suppress the truth about thieving socialist Ponzi schemers and Treasury Secretaries, corrupt politicians, murdering anti American Moslems, lazy entitled government workers and unions, imbecilic leftist congressmen who think Guam will tip over and sink from having too many people, and other leftist activities that pass all previous limits on acceptable societal stupidity.
World Outlook
A 20% improvement in sales after an 80% drop still leaves a company 76% lower this year. But the market prices the stocks much higher because the growth rate makes the stocks PEG seem like a great buy. It can be a very slow growth company that looks good only because the investors are short sighted and believe the stock hype Jim Cramer and others give them. The Baltic Dry index measures the health of world trade. It has shown a serious decline in the last few months and that no doubt is why Jim Cramer has been ignoring it of late. It means world trade is slowing,
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND
Economic Calendar
Finally American jobs are being created faster than they are being lost. See:
http://www.martincapital.com/chart-pgs/Pg_jobs.htm
However, below that chart is another chart that shows the high unemployment rate. What is not shown is that there are a greater percentage of Americans who have been unemployed now for more than a year than in any period since the Great Depression. That block of unemployed Americans will take a long time to re-absorb into the economy.
ISM non manufacturing index rose to 55.4% from 53% last month indicating services are expanding at an increased pace.
US Treasury prices slid on Monday with benchmark yields touching 4 percent for the first time in 10 months as inflation is anticipated. Inflation is better now than deflation.
Pending home sales- the National Association of Realtors said Monday its seasonally adjusted index of sales agreements rose 8.2 percent from January to a February reading of 97.6. January's reading was revised slightly downward to 90.2 to make the current month look better. This is still a good sign.
FOMC minutes were once again positive. In light of improved functioning of financial markets, the Federal Reserve has been closing the special liquidity facilities that it created to support markets during the liquidity meltdown. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close June 30.
Markets are skeptical over Greece's ability to repay bonds they continue to sell more of to pay off debt and go ever deeper into debt as welfare recipients and government workers demand a free lunch and put it on the tab of private workers.
Buyers have returned in force to Treasury 10-yr note auction. The $21 billion auction stopped out at 3.900 percent just under recent highs of 4%. Retail demand was very strong with direct and indirect bidders taking down 59 percent of the auction vs. an average of 51 percent. The continuing trouble in socialist Greece has increased the value of the dollar and is giving a boost to U.S. Treasuries. Treasury prices are extending gains.
Yesterday
Unemployment claims: There were 2.7 million job openings February 2010. The job-opening rate was little changed over the month at 2.1 percent. The hires rate (3.1 percent) and the separations rate (3.1 percent) were also little changed in February.
Bank of England rate has not been increased.
The EURO experienced moderate bounces in positive price volatility following news from European Central Bank (ECB) governor Jean-Claude Trichet. In an anticipated move, the ECB decided to hold interest rates steady while declaring growing stability for Greece. Trichet declared that there was little fear of a sovereign default by Greece in the future and the impact was gripped by short-term bursts in EUR growth. Currently the insurance odds indicate they assess a 4% risk of Greek bond default within five years. Following the announcement by Trichet, the EUR exited its recent weeklong downtrend against the USD and bounced back towards 1.3355 by the end of yesterday's trading. Against the GBP the EUR witnessed two sharp spikes after the announcement by the ECB, but was unable to sustain its growth and fell back into its downtrend, sending a wave of chatter among analysts that a similar fate was due for the EURO/USD in today's trading.
Treasury 30-Year bonds go to 4.770% yield pushing. 30-Year Mortgage Rates to Highest Level in Eight Months. Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage averaged 5.21 percent with an average 0.6 point for the week ending April 8, 2010, up from last week when it averaged 5.08 percent. This is the highest the 30-year mortgage has been since the week ending August 13, 2009 when it averaged 5.29 percent.
Gold prices rose on signs of inflation in home prices and in higher interest rates that increase the cost of producing everything especially in a high debt society.
Friday, April 9:
Wholesale Trade Report
Market Outlook April 9
The market closed up on lower volume again confirming the topping of the American stock markets. We do not expect more than a 10% decline in this first round but it is likely to cascade downward until the socialists in Congress are thrown out of office so that spending on unions and state, city, and federal loafing lifers can be cut.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock. The management of BOOM is milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican Nat. Comm. Is another big spender and is destroying the Republicans from the inside as contributors are turned off by GOP big spending on nude bar scenes.
World Markets
Asian markets were up over night; Shanghai up 0.9%, Hong Kong up 1.6%, India up 1.2%, and Japan up 0.3%.
European markets are currently up in the range from 0.7% to 1.3 % this morning about half way through their day.
Today US pre-market futures are up about 0.2% at 8 AM EST.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions).
The unions have the political entailment to select the arbitrators who determine the limits to which State and City workers can bleed state and city taxpayers. Those state and city entitlements are what give us a look at the future of America under socialism because the leftists tend to be concentrated in major cities and states like NYC and California which were once areas of capital formation. They are attracted to wealth just like any thief is. Once in the late 1800's Rhode Island's city of Newport was the wealthiest city because it was a beautiful coastline where the wealthy vacationed. The leftists took over the city and state and all the wealthy gave up and moved out. Now Rhode Island ranks with the poorest in wealth and education in the USA. Once America attracted the ambitious and idealistic poor of the old socialist European countries who were brave enough to be pioneers in a new world and make it on their own. Today the leftists have opened the flood gates from places where people reject the old American work ethic, do not seek to educate themselves, and refuse to learn the language Americans have spoken since the Pilgrims. Americans are becoming the servants of a majority of voters who are leftist socialists and for the most part pay little or no taxes because they feel entitled to homes and a life style that true Americans like you must support as their indentured servants (like the educated Greek slaves of old).
It is quite possible to educate this mass of indolent leftists but not when they are entitled to everything based on the laws made by leftists and socialists. We must have the American laws that that the Pilgrims had. The pilgrims tried a Christian style of socialism where everyone was supposed to work according to their ability and could share in the harvest of the community. Under Pilgrim socialism many shirked their work claiming age or infirmities made work too inhumane for them. The next season the American Pilgrims switched from socialism to free enterprise and the community law became unto each according to his works or as the charity of others provided. The socialist's entitlement to charity was gone and the Pilgrims survived and Americans used their surplus wealth to be the most charitable nation in the world.
The left spreads lies and says America is not charitable. But all we need to do is look at America before the leftist socialists began taking power and you see Americans were much more charitable. After WWI America sunk $billions into Western Europe while the Communists stripped East Germany of its machinery and kidnapped German scientists as a slave source of manpower to develop jets, rockets, and nuclear weapons under communists who took all the credit. Eventually Eastern Europe was starving and America was shipping them free grain to eat. But the Communists re-bagged the wheat and then demanded that the bags not be labeled as coming from America. Leftists and socialists are the world's best liars because no one would listen to them if they knew the truth. Today they want everyone to say nice things about them and the Moslem terrorists who want to kill all Jews and Americans. They hate the American Tea Party movement and call them haters because there just are no nice words to describe leftists and socialists if you wish to speak truthfully.
The whole reason for politically correct speech is to suppress the truth about thieving socialist Ponzi schemers and Treasury Secretaries, corrupt politicians, murdering anti American Moslems, lazy entitled government workers and unions, imbecilic leftist congressmen who think Guam will tip over and sink from having too many people, and other leftist activities that pass all previous limits on acceptable societal stupidity.
World Outlook
A 20% improvement in sales after an 80% drop still leaves a company 76% lower this year. But the market prices the stocks much higher because the growth rate makes the stocks PEG seem like a great buy. It can be a very slow growth company that looks good only because the investors are short sighted and believe the stock hype Jim Cramer and others give them. The Baltic Dry index measures the health of world trade. It has shown a serious decline in the last few months and that no doubt is why Jim Cramer has been ignoring it of late. It means world trade is slowing,
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND
Economic Calendar
Finally American jobs are being created faster than they are being lost. See:
http://www.martincapital.com/chart-pgs/Pg_jobs.htm
However, below that chart is another chart that shows the high unemployment rate. What is not shown is that there are a greater percentage of Americans who have been unemployed now for more than a year than in any period since the Great Depression. That block of unemployed Americans will take a long time to re-absorb into the economy.
ISM non manufacturing index rose to 55.4% from 53% last month indicating services are expanding at an increased pace.
US Treasury prices slid on Monday with benchmark yields touching 4 percent for the first time in 10 months as inflation is anticipated. Inflation is better now than deflation.
Pending home sales- the National Association of Realtors said Monday its seasonally adjusted index of sales agreements rose 8.2 percent from January to a February reading of 97.6. January's reading was revised slightly downward to 90.2 to make the current month look better. This is still a good sign.
FOMC minutes were once again positive. In light of improved functioning of financial markets, the Federal Reserve has been closing the special liquidity facilities that it created to support markets during the liquidity meltdown. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close June 30.
Markets are skeptical over Greece's ability to repay bonds they continue to sell more of to pay off debt and go ever deeper into debt as welfare recipients and government workers demand a free lunch and put it on the tab of private workers.
Buyers have returned in force to Treasury 10-yr note auction. The $21 billion auction stopped out at 3.900 percent just under recent highs of 4%. Retail demand was very strong with direct and indirect bidders taking down 59 percent of the auction vs. an average of 51 percent. The continuing trouble in socialist Greece has increased the value of the dollar and is giving a boost to U.S. Treasuries. Treasury prices are extending gains.
Yesterday
Unemployment claims: There were 2.7 million job openings February 2010. The job-opening rate was little changed over the month at 2.1 percent. The hires rate (3.1 percent) and the separations rate (3.1 percent) were also little changed in February.
Bank of England rate has not been increased.
The EURO experienced moderate bounces in positive price volatility following news from European Central Bank (ECB) governor Jean-Claude Trichet. In an anticipated move, the ECB decided to hold interest rates steady while declaring growing stability for Greece. Trichet declared that there was little fear of a sovereign default by Greece in the future and the impact was gripped by short-term bursts in EUR growth. Currently the insurance odds indicate they assess a 4% risk of Greek bond default within five years. Following the announcement by Trichet, the EUR exited its recent weeklong downtrend against the USD and bounced back towards 1.3355 by the end of yesterday's trading. Against the GBP the EUR witnessed two sharp spikes after the announcement by the ECB, but was unable to sustain its growth and fell back into its downtrend, sending a wave of chatter among analysts that a similar fate was due for the EURO/USD in today's trading.
Treasury 30-Year bonds go to 4.770% yield pushing. 30-Year Mortgage Rates to Highest Level in Eight Months. Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage averaged 5.21 percent with an average 0.6 point for the week ending April 8, 2010, up from last week when it averaged 5.08 percent. This is the highest the 30-year mortgage has been since the week ending August 13, 2009 when it averaged 5.29 percent.
Gold prices rose on signs of inflation in home prices and in higher interest rates that increase the cost of producing everything especially in a high debt society.
Friday, April 9:
Wholesale Trade Report
Market Outlook April 9
The market closed up on lower volume again confirming the topping of the American stock markets. We do not expect more than a 10% decline in this first round but it is likely to cascade downward until the socialists in Congress are thrown out of office so that spending on unions and state, city, and federal loafing lifers can be cut.
Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock. The management of BOOM is milking that company dry.
The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican Nat. Comm. Is another big spender and is destroying the Republicans from the inside as contributors are turned off by GOP big spending on nude bar scenes.
World Markets
Asian markets were up over night; Shanghai up 0.9%, Hong Kong up 1.6%, India up 1.2%, and Japan up 0.3%.
European markets are currently up in the range from 0.7% to 1.3 % this morning about half way through their day.
Today US pre-market futures are up about 0.2% at 8 AM EST.
We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions).
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