Dow Closes Above 11,000; This Rally Has Ignored Fundamentals, and Will

Be Corrected Painfully, Hussman Says … The market rebound we've

experienced is near an end, and we should have seen it coming, according
to John Hussman of Hussman Funds… Here's a breakdown of why
Hussman thinks that, even if you ignore questions about the banking
system, this market is clearly in line for a correction.

• Investors have gone through two massive loss periods in the past 12
years, and only gained 2.4% if they tracked the S&P.
• Returns are going to be low over the next several years, and while
there might have been a price low in March 2009, the valuation low
has yet to be found. It may take another 6-8 years.
• This low return on the S&P is not the result of other potential crises
looming in the system, including credit problems, but simple
fundamentals.
• People are now buying into the market, relying on economic growth
and the absence of another credit crisis, rather than on
fundamentals.

As such, says Hussman:

This outcome is not dependent on whether or not we observe a second set
of credit strains, but is instead baked into the cake as a predictable result
of prevailing valuations. The risk of further credit strains simply adds an
additional layer of concern here. Investors have chased risky securities
over the past year to the point where the risk premium for default risk has
eroded to the levels we saw at the peak of the credit bubble in 2007. MY
SENSE IS THAT THIS IS A MISTAKE THAT WILL BE PAINFULLY
CORRECTED. Investors now rely on a sustained economic recovery and
the absence of any additional credit strains - and even then would be likely
to achieve only tepid long-term returns from these levels…

[$$] Losing Big -- Winning Anyway Does moral hazard even exist anymore?
The list goes on -- auto companies, banks, insurance companies and now
countries.

HAL 9000s Keep Dow at 11,000: Dave's Daily Dave's Daily By Dave Fry,
founder and publisher of ETF Digest and author of the best-selling book
Create Your Own ETF Hedge Fund. HAL 9000s KEEP DJIA AT 11K There's
no need to make this stuff up anymore since end-of-day stick saves are
right there and in your face. No pretense or deception is necessary
anymore. When you have "other people's money," including the taxpayers
to work with; you can do what you wish and not be called-out on it. Who's
going to do that anyway, the financial media? LOL!!! Anyway, the media
got the headline number they wanted and Main Street is no doubt
impressed. Now to the hard part--earnings. Starting with Alcoa (which just
reported a miss) will be followed by important companies like Intel and
Bank of America. There isn't much in the way of economic news until Retail
Sales and the Fed Beige Book on Wednesday. Monday's volume was
pathetically light; so managing the market higher was easy for those who
could … Per Investopedia: The McClellan Summation Index is a long-term
version of the McClellan Oscillator. It is a market breadth indicator, and
interpretation is similar to that of the McClellan Oscillator, except that it is
more suited to major trends. I believe readings of +1000/-1000 reveal
markets as much extended (charts show +1250) …

Exciting Week for Stocks, ETFs but Economic Indicators (of which the
boot-strap bubble stock market is a significant component inflating /
obfuscating same) Tell Different Story … This week I read some truly
remarkable and conflicting facts that make things all the more interesting
and confusing. On the up side, the March Institute of Supply Management
report was positive, as was the February Pending Home Sales and
Wholesale Sales, while Consumer Credit unexpectedly contracted by a
whopping -$11.5 Billion. Also this week, it barely made the news that
weekly unemployment claims unexpectedly rose by 18,000, and the four
week moving average was up from the previous week as well.
Underemployment remains near 20%. We have approximately 5 million non
current home mortgages in the US and a record 40 million people on food
stamps, a number which has steadily been rising over the last year. In the
housing sector, mortgages reached an eight month high this week and
even Chairman Bernanke said in a speech that we’re “far from being out of
the woods,” which is a chilling comment from one of the chief cheerleaders
and architects of the recovery. Looking at the all important housing and
employment markets, the FOMC meeting minutes released this week were
even more chilling.

Regarding general conditions, the FOMC said:

Household spending going forward was likely to remain

constrained by weak labor market conditions, lower housing
wealth, tight credit, and modest income growth.

The employment outlook was not particularly bright, in their opinion, as the
minutes said:

Participants were concerned about the scarcity of job

openings, the elevated level of unemployment, and the extent
of longer-term unemployment .... Moreover the downward
trend in initial unemployment claims appeared to have leveled
off in recent weeks ...
Regarding the all important housing market, the minutes said:

Participants were also concerned that activity in the housing

sector appeared to be leveling off in most regions despite
various forms of government support, and they noted that
commercial and industrial real estate markets continued to
weaken. Indeed, housing sales and starts had flattened out at
depressed levels, suggesting that previous improvements in
these indicators may have largely reflected transitory effects
from the first-time homebuyer tax credit rather than a
fundamental strengthening of housing activity.

It’s just hard to see any good news in this report but somehow the markets
have managed to ignore what clearly are scary facts. Looking abroad, the
Greek Tragedy continued to unfold with Greece bonds crashing last week
and requiring a 442 basis point premium to German bonds to be sold which
Prime Minister George Papandreou labeled as unsustainable. Clearly
Greece needs help from the European Union and probably the IMF and a
plan could be announced as early as this weekend to stave off Greece’s
default. Greece needs more than eleven billion eurodollars to cover debt
between now and the end of May and last week, ratings agency Fitch cut
both the nation’s and its banks’ credit ratings with a negative outlook. The
problem here, of course, is that it isn’t just Greece that is in trouble but the
other so called “PIGS” or Club Med states. Global contagion and sovereign
defaults remain a real concern in the months ahead. Looking to Asia, China
had a failed bond auction last week which went largely unnoticed in the US
financial press. They offered 91 day and 273 day paper and neither offering
was fully subscribed as they tighten their money supply in an attempt to
slow potential inflation. Finally, earnings season starts Monday with Alcoa
(AA), and late last week the company was hit with analyst downgrades,
perhaps to make their results “exceed expectations” in spite of
deteriorating earnings. What It All Means Adding it all up, we see an
overbought, complacent market on a technical basis and a relatively high
risk environment on a fundamental basis both at home and abroad …

Listen here and listen well: The frauds on wall street know all the tricks,
mechanized trading trendline buy signals, chart buy signals, confirmation
of trendlines, technical analysis, and other very mechanically applied
strategies, etc., and can, and do manipulate by computerized buy programs
(previously described in part on this website) accordingly. Everything
purporting to account for the rise has already been discounted many times
over to the upside over the past year and even that which purports to be
must be discounted along with the looming reality of insurmountable debt
crisis / debacle in this country, the GDP of which has already begun to
suffer from debt service / costs. Sell while you can / take profits, gains / sell
into strength / preserve principal / don’t be caught holding their bag as in
prior crashes.

Depressed about our future Mark Lutter | Though it is impossible to

speculate on which straw is going to break the camel’s back, the outcome
is relatively easy to predict if one understands the fundamentals.

The Guy Who Brought Down AIG – and Maybe the World Economy – Gets
Off Scott-Free, and Gets to Keep $315 Million in Loot joseph cassano,
the guy who brought down AIG – and maybe the world economy –
with trillions in risky derivatives deals which AIG couldn’t back up, is
getting prosecuted … and the government will claw back all the
money he … riiiiight … what frauds!

The Rules Part VII: Bear Markets Reveal Optimistic Assumptions and
Accounting Chicanery Chinese Students Laugh at Tiny Tim
geithner as He Talks About U.S. Dollar, Economy Infowars | The
laughing incident was ignored by the corporate media in the United
States.

World’s Second Biggest Economy On the Ropes_ Washington’s Blog |

Japan is the world’s 2nd biggest economy. Only the U.S. is bigger.

Federal Reserve Chairman Ben Bernanke sounds a warning on growing

deficits… How perceptive… How prescient … How pathetically
incompetent ... U.S. Banks Hid Risk by Lowering Debt Before
Reporting, WSJ Says - B... The Fed “Owns Credit-Default Swaps …
On Debt Owed by California and Nevada. So the Fed Would Profit If
One of Those States Defaulted on its Debt.” As part of the bailouts of
AIG and Bear Stearns, the Federal Reserve Bank of New York spent
more than $70 billion to buy toxic assets the companies owned. Ex-
Goldman trader blows whistle on silver and gold manipulation by
JPMorgan, HSBC There is no silver lining to the activities of
JPMorgan Chase and HSBC in the precious-metals market here and in
London, says a 40-year veteran of the metal pits.

(4-12-10) Dow 11,006 +8 Nasdaq 2458 +3 S&P 500 1,196 +2 [CLOSE- OIL
$84.34 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS
$2.85 (reg. gas in LAND OF FRUITS AND NUTS $3.11 REG./ $3.26 MID-
GRADE/ $3.35 PREM./ $3.08 DIESEL)/ GOLD $1,162 [video] Gold
Surges Stocks/Gold Comparison (+24% for year 2009) / SILVER
$18.35 (+47% for year 2009) PLATINUM $1,714 (+56% for year 2009) /
DOLLAR= .73 EURO, 92 YEN, .65 POUND STERLING, ETC. (How low
can you go - LOWER)/ 10 YR NOTE YIELD 3.85% …..… AP Business
Highlights ...Yahoo Market Update... ] T. Rowe Price Weekly
Recap – Stocks / Bonds / Currencies - Domestic / International
 MARKET MANIPULATION AND HOW THE LATEST BUBBLE-FRAUD
PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10 6
Theories On Why the Stock Market Has Rallied 3-9-10 [archived
website file] Risks Lurk for ETF Investors The bull market that
never was/were beyond wall street b.s. when measured in gold
Property Values Projected to Fall 12% in 2010 Jan 31, 2010 The
Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31, 2010
01-13-10 Forecast for 2010 from Seeking Alpha Contributor THE
COMING MARKET CRASH / CORRECTION 1-28-10 Maierhofer
(01-15-10) 11 Clear Signs Economy Sinking Economic Black Hole 1-
22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not
Going To Recover Current Economic / Fiscal Charts
Trendsresearch.com forecast for 2009 1-7-10 Crash is coming!
‘WORST ECONOMIC COLLAPSE EVER’ Must Read Economic /
Financial Data This Depression is just beginning The
coming depression… thecomingdepression.net MUST READ:
JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850
on the S&P) by TPC The Next Wave of Collapse is Coming Sooner
than you think Sliding Back Into the Great Recession
ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS
WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!

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gingrich, the Ultimate Hypocrite Calls Banker Puppet Obama “Most Radical
President in American History” Kurt Nimmo | gingrich tells us he is a
historian, and yet his historical context excludes the obvious fact both
parties work for the banksters. bush the Moron / War Criminal Was
Right: The Constitution is Just a G.D. Piece of Paper Kurt Nimmo |
Thomas Jefferson is rolling over in his grave. Google CEO and
Obama Activist Wants Machines to Pick News Kurt Nimmo | Obama
partisan wants his machines to decide what news you read with your
morning java. WikiLeaks under CIA surveillance Sunday Times |
Activists have complained of harassment by police and intelligence
services as they prepare to release a video showing an American
attack in which 97 civilians were killed in Afghanistan. Intel Wants
Brain Implants in Its Customers’ Heads by 2020
PopSci | Scientists anticipate that consumers will adapt quickly to the idea.
China faces new health scare over ‘bad vaccines’ AFP | The China
Economic Times report blamed vaccines that had been exposed to
excessive heat and should have been destroyed. Provocateurs
 Openly Announce Plans To Stage Tea Party Violence With the
establishment desperate to engender and exploit violence which will
be used to demonize the Tea Party movement as an extremist mob,
so-called anarchists are now openly declaring their intentions to pose
as Tea Party members and stage violence in order to discredit
populist grass roots organizations. ‘Invisible Empire’ exposes a
hidden history the public must learn The Names often Change, but
the Game Remains the Same

Ron Paul: Obama is Not a Socialist, He is a Socialist Corporatist Evan

McMorris-Santoro | “Unfortunately we have corporatists inside the
Republican party and that means you take care of corporations and
corporations take over and run the country.” Tax Audits of Big
Business Are Declining, Study Says New York Times - Despite the
federal government's repeated pledges to crack down on big
businesses that underpay their taxes, the Internal Revenue Service
has decreased in recent years the time it spends auditing the returns
of the nation's ... IRS Audits Small Biz More, Big Guys Less Forbes
IRS Audits Fewer Corporate Taxpayers: Critic ABC News
Murder.gov Becky Akers | Listen to the drums beating the Dead
March as the American Empire chugs into totalitarianism’s next
terminus: execution of citizens without trial. Corporate Media
Connects Hutaree Members to U.S. Military Kurt Nimmo | Latest
accusation adds ammunition to the ongoing government and
corporate media vilification of patriot and constitutional groups.
Kissinger Effectively Gave Go-Ahead for Terrorist Attack on US Soil in
1976 Jurriaan Maessen | Bilderberger Henry Kissinger rescinded
instructions that would have prevented one of the worst terrorist
attacks on US soil. Cable ties Kissinger to Chile controversy (AP)

Mob Infested new jersey’s Christie blasts teachers union for 'perverse'
memo NorthJersey.com - Leslie Brody, Patricia Alex Governor
Christie on Friday blasted a teachers union memo as “perverse” and
“beyond the pale” for alluding to his death, while union leaders
apologized but contended the controversy had been overblown since
jersey is by definition perverse, beyond the pale, corrupt , obscene,
etc. Christie shows up at LoBiondo fundraiser, so do angry Atlantic
County teachers Press of Atlantic City Unholy NJ death wishers New
York Post

Iran has evidence americans ‘worked for secret services’ Press TV | The
Iranian intelligence minister says Tehran has compelling evidence that
three Americans arrested in Iran last year were cooperating with
intelligence services.
America: The Grim Truth Lance Freeman | You have the worst quality of
life in the developed world – by a wide margin.- Information Clearing House
April 9, 2010

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JOE STIGLITZ: U.S. ROOT OF WORLD FINANCIAL CHAOS … “That is a real

risk that U.S. monetary policy, flooding the world with liquidity,
unfortunately very little of it translating into lending in America, is helping
create bubbles all over the world, and creating instability in many other
countries in the world. I think that has not been taken into account fully:
the global cost of these policies.”

Exclusive: Is Goldman Sachs Playing Fair? Of course not! But if you have
to ask the obvious question, then you’re either screwed or a screwer
like them_… Which are you? CBS News

America: The Grim Truth Lance Freeman | You have the worst quality of
life in the developed world – by a wide margin. Information Clearing House
April 9, 2010

The satanic pentagram, the u.s. military pentagon/pentagram, the endless

wars / sacrifices of innocent civilians, women, and children; that
america is the force of evil can no longer be ignored!

The Cover-Ups That Exploded The Pentagon is reeling after two lethal
episodes uncovered by diligent journalism show trigger-happy U.S.
Army helicopter pilots and U.S. Special Forces slaughtering civilians,
then seeking to cover up their crimes.

NATO Troops Fire on Bus, Killing 4 Afghan Civilians Four Afghan civilians
were killed when international troops opened fire today on a bus in the
southern province of Kandahar, the Taliban heartland where coalition
forces are preparing a new offensive.

Russia furious over adopted boy sent back from US, as well they should
be. After all, the adoptive parents were fortunate to have as their child a
product of such a great nation of rich culture and history as Russia and to
say that the boy had mental problems merely was a reflection of the
comparison to the pervasively criminal and mentally ill populace of the u.s.
(there are anthropological explanations for what I term analogous to
adverse selection, an insurance term) he was indeed different, which is a
good thing. (AP)

No Missing Link Per Se 2-million-year-old fossils may help fill key

gap in human evolution Nine-Year-Old Fossil Hunter Finds New
Species of Human Ancestor - B...

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One Day Soon, We’ll All Be “Homegrown Terrorists” Giordano Bruno | It’s
getting so you cannot even talk about this or you get associated as a
possible terrorist or “extremist”. Bush ‘knew Guantánamo
prisoners were innocent’ Times Online | Bush, Dick Cheney and
Donald Rumsfeld covered up that hundreds of innocent men were
sent to the Guantánamo Bay. war on terrorism contrived and
continues. Has anything really changed? bush’s “war on terror” isn’t
discussed much nowadays, which has enraged more than a few right-
wing Republicans who accuse wobama of being soft on terrorism. It
may have been given a lower profile but in reality, it’s still ongoing as
wobama has reauthorized the Patriot Act until February next year,
which means the American people are still vulnerable to telephone
wiretaps and to having their records seized by authorities.

israel ranks 6th with up to 300 illegal nukes Analysts for a reputable
military journal have rated israel as the world’s sixth nuclear power,
alongside Britain, with up to 300 nuclear warheads. Canceled
netanayahu trip spotlights israel nukes. So how in light of war criminal
nation israel’s illegal nukes do they justify ganging up on Iran based
upon speculation as to what Iran might do though they deny the
accusations? After all, they don’t have to speculate as to israel’s
illegal nukes The Associated Press Netanyahu cancels trip to
Obama’s nuclear summit Reuters | He made the decision after
learning Egypt and Turkey intended to raise the issue of israel’s
atomic arsenal at the meeting, a senior government official said on
Friday. Petraeus finally takes the genie out of bottle The taboo was
finally broken and the genie is out of the bottle despite some attempts
to force it back. America’s military leaders have had enough and
decided to speak out about the liability that a hard-line Israel causes
to America’s national interest. Chickening out israeli Premier
benjamin netanayahu’s withdrawal from the upcoming two-day
nuclear security meeting in the US could represent a highly significant
 moment in the Middle East affairs. The israelis are giving out that
netanayahu had been warned he would be challenged by the Turkish
and Egyptian delegations over israel’s own undeclared nuclear
arsenal.

Syria, Arab League slam West Bank 'ethnic cleansing' (AFP) Israel’s
expulsion order a new catastrophe: PLO RAMALLAH: The Palestine
Liberation Organization (PLO) said on Monday that a new Israeli
military order that allows the country’s government to expel
thousands of Palestinians from the West Bank is “a new Nakba for
Palestinian people.”

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Got him! Madadi the sandled, smoking potential shoe bomber. Victory in
terror war declared by america as Jihad Jane and Jamie also go down!
“Internet Jihadist alias Matt Drudge lone hold-out and runnin’ scared”
… riiiiight! … Pennsylvania: Silent Plea in Terrorism Case New York
Times - By AP A pregnant Colorado woman charged in a global
terrorism plot pleaded not guilty with a nod of the head to avoid giving
investigators a voice sample. Woman Silently Pleads Not Guilty in
Terror Case Wall Street Journal Second woman pleads not guilty
in plot to kill Swede Reuters Those dirty nefarious Christians go
down as target of at least one of the raids was a Christian extremist
group and further victory american declared ... Those friggin’
Christians will get you every time … riiiiight! … [If you haven’t yet
figured it out, ‘just kidding’- This is what is called ‘sarcasm’]. Feds:
Christian militia needed to be `taken down' to Chinatown (AP)

2nd American woman charged in 'Jihad Jane' case (AP) AP - Federal

prosecutors filed terrorism charges Friday against a pregnant American
woman in the so-called Jihad Jane case. The two American women are
accused of plotting online to attend a terror tra... 'Jihad Jane' pleads
not guilty Colleen LaRose of Pennsylvania appears in federal court,
accused of working with foreign terrorists in a plot to kill a Swedish
cartoonist. Video: 'Jihad Jane' Terror Suspect Pleads Not Guilty The
Associated Press 'JihadJane' pleads not-guilty | Philadelphia Inquirer |
03/18/2010 US rep: Pa. Jihad Jane terror suspect cooperated (AP)

Jihad Jamie: Corporate Media Hypes Another Blond Terrorist Kurt Nimmo |
The government will need to come up with terrorists who are not so
obviously mentally or emotionally disturbed in order to sell us on an
 interminable war on terrorism. “JihadJane” was laughable, Web
watchers say Philadelphia Inquirer | For years, “JihadJane” had been
a joke to those who kept tabs on her online.

Drudge vs. the Senate? U.S. SENATE WARNS ALL STAFF TO AVOID
DRUDGE... Senate Tells Employees Not to Read Drudge Report
Drudge Report | Just as the healthcare drama in the capitol reaches a
grand finale, congressional officials are warning employees to avoid
the Drudge Report.
Senate declares Drudge Persona Non Grata, Internet Jihadist!

DRUDGEREPORT: GALLUP: OBAMA HITS NEW LOW...

BOW TO CHINESE COMMUNIST
PERSONAL INCOME DROPS 3.2% SINCE OBAMA...
EGYPT: PRESS NOT IRAN IF NOT BOTH IRAN, ISRAEL ON NUKES....
GOOGLE FRANKENSTEIN: MACHINES TO CHOOSE YOUR NEWS...
SCIENCE CZAR TELLS STUDENTS: USA CAN'T BE #1 ...
Civilians Killed as Troops Fire on Afghan Bus...
Tina Fey mocks Palin -- AGAIN -- on 'SNL'...
Iran to complain to UN over wobama nuclear 'threat'...
READY TO RISE: CONSUMERS FACE END OF CHEAP CREDIT...
Wiki Whistleblowers fear CIA stalkers...

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