Geithner’s poor han­dling of GM and Chrysler dealers caused the failure of thou­sands of small busi­nesses. The IRS, which Trea­sury man­ages, will cause addi­tional thou­sands of fail­ures with dra­conian enforce­ment of Oba­macare require­ments. Is the glob­alist goal to estab­lish a Tech­noc­racy in America and the world? Stocks appear ready to com­plete a minor upward cor­rec­tion prior to heading down again.

“The world is at risk of folding in on itself”, according to a Roubini econ­o­mist. Man­u­fac­turing and prices both fell in June, marking eco­nomic dete­ri­o­ra­tion and defla­tion at the same time. Con­sumer sen­ti­ment also dropped in July to the lowest level in one year. Stocks were pun­ished hard as wave 3 down resumes. There is some risk of a water­fall decline from cur­rent levels.

Pres­i­den­tial Com­mis­sion on Debt: A “cancer” that will “destroy us from within.” Retail sales fell for second month as 70 per­cent of Amer­i­cans believe we are already in a reces­sion. Summer travel and tourism had rocky start in June. Mort­gage appli­ca­tions fell to a 13 year low, fur­ther dete­ri­o­rating the real estate market.

Con­sumer credit scores are in the tank as bor­rowers slip below a 599 rating. These will not help any sup­posed retail revival in the near future. The FDIC indi­rectly admits that there are “large, risky banks” in the 8000 lenders who col­lec­tively hold $7 tril­lion of deposits. Stocks may have already set minor wave 2 highs, and are ready to roll over into wave 3 down.

Greenspan says “pause” in economy. Pri­va­ti­za­tion of public assets will accel­erate as states go broke. Debt col­lec­tion agen­cies are more abu­sive as con­sumers have less to pay on debt. When the cur­rent market rally peaks, the next direc­tion should be down hard to new lows.

Mort­gage appli­ca­tions sky­rocket as ARM resets force homeowner’s hand. Italy is likely the next Euro­pean country to join Greece in finan­cial chaos. Gei­thner assures the world that the U.S. is recov­ering despite market volatility. The market is cor­recting last week’s deeply over­sold con­di­tion, and may carry slightly higher before turning down again.

Every market is pointed down now: stocks, real estate, com­modi­ties, metals, munic­ipal and cor­po­rate bonds. Beware! The defla­tionary bear is on the loose. Will stocks ulti­mately break the 4,000 level or lower? Will 500 more banks be gone by the end of 2010?

Spe­cial interim report: Gold and silver crash along with stocks.

The Baltic Dry Index is down another 4 per­cent in two weeks, off­set­ting any claims by man­u­fac­turing that it is in recovery mode. The Gulf oil spill will cost gulf states hun­dreds of bil­lions to mit­i­gate and some cities may have to be com­pletely relo­cated, cre­ating eco­nomic dead zones. Real estate faces a sudden-death col­lapse that could begin at any time. The Con­gres­sional Budget Office warns Con­gress that it is leading the country toward dis­aster with run­away debt and spending.

Were peaceful G20 pro­testers sand­bagged by agents provo­ca­teur? Many Cana­dians think so. Famed econ­o­mist Paul Krugman pre­dicts America’s third defla­tionary depres­sion, starting now.  Are cen­tral banks pushing the global economy over the cliff? Obama says he intends to reveal “dif­fi­cult choices” to Amer­i­cans next year. Mar­kets and metals may both be set to decline this week.