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Last Week – Two Major

Unexpected Events


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That are potential

Tipping Points

for Future Trends

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Germany’s Stunning

Reversal

The German Parliament by a stunning 4 to 1 margin

approved a Spanish & Italian $120 million bailout,

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WITHOUT NEW AUSTERITY

MEASURES

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Stock Markets Across the World Rocket Higher

USA up @2.5%, Germany up @5.7% on Friday

European markets up a bit less than 1% this AM

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Andrea Merkel German Chancellor

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“Austerity is like a farmer saving money by not

watering his crops as they die in a drought”

Thanks to frequent Blogger

George Norboe

for the above concept.

Link to this and other comments over EU bailout

Here [Scroll Down]

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ObamaCare Upheld

Latest News on Robets’ Switch

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Analysis of Both Events

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EU Bailout

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  • Stocks – Obviously a game changer, especially if stock markets hold of add to gains today.
  • Italy and Spain are too big to fail, = Eur0zone collapse. Greece is not & they are going to be angry.
  • Italy & Spain more a a fiscal banking crisis (like the USA) than Greece
  • Major win for Democracy – A Eurozone collapse would be a disaster.
  • A win for Obama. His candidacy would have been toast because a collapsing Eurozone would echo here.
  • Obviously – No solution for regulating the over leveraging of too big to fail banks.

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Affordable Health Care Act

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  • Stocks – A non event for US Stock markets – Markets end day (Thursday) slightly higher.
  • Money/Stock prices speaks louder than words. The markets may not always be right & Obamacare will be fear mongered to voters, but stocks have told you there is NO negative economic impact.
  • Hospital Stocks rally 5+% Biggest US hospital chain HCA 14+%
  • No longer will emergency rooms be stuffed with uninsured freeloaders. They will be part of system or suffer a penalty.YOUR hospital costs should get reduced.
  • It’s a step toward joining the rest of the world’s democracies and Massachusetts (scroll down) in a better & more cost effective health care system
  • If Obamacare is OK as a tax, so is Medicare and Social Security – This should be the first words on every Democrat’s lips every time the far right brings up this issue.

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STOCKS

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Short term – Hopeful, of bullish bias (see above) till earnings season – Starts end if next week.

If stocks can hold onto or add to Friday’s gains today/this week – its positive for US stocks

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Long Term Outlook

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NEUTRAL

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AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK & POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.



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