Bob Chapman Summarizes

Bob Chapman lays down reality -

• The Baltic Dry Index, a measure of commodity-shipping costs that’s tumbled 28 percent during its longest losing streak this year, may decline further, according to technical analysis by Barclays Capital.
• Fitch lowered BP’s credit rating 6 notches from AA- to BBB-, one notch above junk. Pensioners and other UK investors are about to get crushed, as if the black nobility run by the Queen and the Rothschild’s cared. It is obvious BP is destined for failure. Wait until the public finds out the oil fiasco was a false flag operation to pass Cap & trade and carbon taxes among other things.
• Government-sponsored mortgage purchasers Fannie Mae and Freddie Mac plan to delist their shares from the New York Stock Exchange.
• Total housing starts were at 593 thousand (SAAR) in May, down 10% from the revised April rate of 659,000 (revised down from 672 thousand), and up 24% from the all time record low in April 2009 of 477 thousand (the lowest level since the Census Bureau began tracking housing starts in 1959). 

Single-family starts collapsed 
• The state’s foreclosure crisis continued in May as the number of homeowners who lost their properties more than doubled compared with the same month a year ago, according to data released yesterday.
• The number of U.S. workers filing new applications for unemployment insurance unexpectedly rose last week as the manufacturing, construction and education sectors shed employees, adding to worries that the economic recovery is slowing.
• Factory activity growth plummeted in the U.S. Mid-Atlantic region in June, a survey showed on Thursday, adding to worries that the short and tepid U.S. economic recovery is now fizzling.
  The Philadelphia Federal Reserve Bank said its business activity index dropped to 8.0 in June from May’s 21.4. Economists had expected a reading of 20.9, based on the results of a Reuters poll, which ranged from 10.0 to 24.0.
• More than 90 U.S. banks and thrifts missed making a May 17 payment to the U.S. government under its main bank bailout program, signalling a rising number of lenders are struggling to meet their obligations. 

The Real Effect
Let's sum up shall we? Major corporations are going belly up, the Gulf is flooded with oil and there is no end in sight, Fannie and Freddie are still bankrupt and sucking funds like there is no tomorrow, housing continues to fall (including prices), unemployment is still rising despite U.S. Census hiring, factories are going idle, and banks are not paying back the U.S. taxpayers that were so gracious to give them a loan in the first place!

This is only a small list of things going massively wrong at the moment on top of a plethora of other items, like say the armada of ships heading to Iran at the moment. While I can somewhat agree that there are times to be prudent and analyze a given situation, we have known about the majority of these messes for over two years! And yet we still play this game of tax and spend, tax and spend.


The time for childish games is long past due. There are people lives on the line here and yet we continue to balk and obfuscate and pretend!

• Cut taxes! Immediately and across the board. End the income tax, property taxes and bring spending in line with the new level of income.
• End the bailouts! If the companies fail, then that is their fate. 

Above all, this nepotistic version of law enforcement needs to end so that the system can work itself out and America can regain its footing.