CAPITALISM OR CAPITOL-ISM?:

GM (Government Motors) may have been the Evil of Two Lessers, and was a partial success, especially to Warren Buffet who praised it and the UAW who benefited more than bond and stock holders. In his classic book - Against The Gods -  the late Peter Bernstein posits that while geniuses were prevalent before the end of the Middle Ages (Euclid, Da Vinci, et.al), neither the Hindus and Arabs, who gave us our numbering system discovered Capitalism, or the use of Risk and Probabilities in society. Thanks to Leonardo Fibonacci (nee Pisano) and later Pascal and Fermat, civilization started using them, with the help of the printing press, resulting in exponential advances. The main reason  was that earlier societies were comfortable with the status quo, and reliance on their gods for Fate and Risk - much like cradle to grave governing has a tendency to do these days.

Like all things organic (humans, vegetation, corporations, governments, and societies) unless modified, the growth cycle and aging eventually result in destruction - death, bankruptcies, revolutions.

Although last week's volatility did not show up in the final unchanged market levels, there was not much change in the Sentiment Indicators. Standouts include AAII Bulls dropping from a high 57.6% to only 40 - the Investors' Intelligence Bulls, however, increased from 48 to 56, while their Bears dropped to a low 20%; Insider Selling dropped to still a high 34:1.

Here are the numbers:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11203	11192	14093	6626
Nasdaq:	2518	2518	2805	1114
S&P 500:	1199	1199	1561	683
CBOE Eq. put/call:	59	57	96-10/08	46-1/03
VIX:	18.0	20.6	90	8.8
McClellan Osc:	(20)	(54)	108	(123)
McClellan Sum:	608	868	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	56.2	48.4	63	22.21
InvestorsIntel.Bear:	20.2	23.1	54.4	16
AAII Bull:	40.0	57.6	n/a	n/a
AAII Bear:	32.5	28.5	n/a	n/a
US Equity-1 week lag	n/a	(.7B)
Money Market Flows	(4.1B)	2.2B
Baltic Dry Index:	2164	24540	11700	663
Bullish %:	76	77	88	2
Insider Corporate Sellers:	34:1	79:1	108:1	2.4:1

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CAPITALISM OR CAPITOL-ISM?: