Nouriel Roubini: The U.S. will lose over 6 million jobs with unemployment reaching at least 9 percent. The U.S. economy will contract in 2009 and expand 1 percent at most in 2010. Economic growth in China will slow to less than 5 percent.
He reiterated his statements that the biggest U.S. banks are 
insolvent, and that losses could reach $3.6 trillion, far exceeding his original estimates.
insolvent, and that losses could reach $3.6 trillion, far exceeding his original estimates.Obama-First 2 weeks:
Secretary of Treasury (Geithner) was NY Fed Governor before and during collapse of our financial system. He did and does whatever the banks and Wall Street tell him to do. He also neglected to pay income taxes he owed for several years. His background and sponsors are the usual (Goldman Sachs, Robert Rubin, Clinton, Banks, Wall Street, etc.) New heads of SEC and CFTC have the same background. They all take orders from Goldman Sachs, Wall Street, etc.
New Deputy Director of the Defense Department is an active lobbyist for Raytheon, a defense contractor. Obama’s promises about lobbyists, conflicts of interest, honesty, "earmarks", etc. were made before the election.
Obama and team are screaming that the country will go kaput if Congress does not vote to give him all the money he wants with no restrictions. He announced the money will “save” the economy and create jobs. These are promises.
No one knows where most of the money given away (somewhere between $350-900 billion) has gone. We do know some was used for billions of bonuses, lobbyists and payoffs. Obama is asking for an additional $1.6 to $3+ trillion (including TARP, “bailouts”, “special grants” and deficit).
His proposed "plan" has a few vague details, but does include "earmarks", lots of "pork" and over 4 billion for "community organizations".
Question: Is there any reason to believe the markets will go sharply higher in the next month? If not ...
Ideas: Good ideas, none. FDIC money market pays very little, but it is safe. Stop loss orders. Dividends, dividends, dividends....
Utilities, natural gas pipeline MLPs and some discounted preferreds and convertibles are OK.
From SA:
http://2008stockmarketupdate.info/Wachovia Securities Outlook http://www.wachovia.com/corp_inst/page/0,,13_54_1067,00.htmlWachovia Securities Outlook http://www.wachovia.com/corp_inst/page/0,,13_54_1067,00.html
More bad news.
Political historian Kevin Phillips wrote a brilliant Harper's article "Numbers Racket" warning us that "the economy is worse than we know." Politicians use "deceptive statistics" to further their political ends. Don’t believe a word they (government) say.
http://www.harpers.org/archive/2008/05/0082023
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