Economic failure dogs Obama.

Barak Obama had promised to lower the sea levels, end partisanship and institute racial harmony. The suckers listening to him ate up the balony. The reality is something else. The sea levels are irrelevant for the Pacific Islands that are growing in size. Partizanship is ever greater as people sense that the Obama crowd is bent on destroying Capitalism.

What is emerging is an economic failure coupled with incompetence. The stimulus failed to promote private industry. As many of us chronicled, it was designed to prop up and create government jobs. Private industry is failing and American icons such as GM, Chrysler and banks have already failed. Other industries like GE, US Steel and Alcoa may soon be taken over by Obama.

The drop in jobs created and the Stock Market signal troubles ahead. The graph I included show that during a bull or bear market, the S&P500 moving averages move in a parallell fashion, but during transition times, the averages diverge. The current divergence signals a coming drop in stocks as economic stagnation continues. Inflation has barely started and is masked by deflation caused by the collapse of the industrial sector. As government revenues fall, money printing will pick up and so will inflation. By now you should be out of stocks.