The Solution for Greece, Europe & the Global Economy

From the source that told you European change still threatened stocks the day of the confounding market rally on the election results in Greece and France, today I am advising that the next move may be higher. What’s killing stocks these last few days is the wild speak coming from the Greek Syriza Party, which is currently attempting to form a government. What may save stocks, probably only temporarily, will be the inability of Greece’s Radical Left Coalition to form a government, which means the Greeks will get a second chance at deciding their fate in June. Where that leads should be at least clearer, though the direction could be either.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers include: Global X FTSE Greece 20 ETF (NYSE: GREK), SPDR S&P 500 (NYSE: SPY), National Bank of Greece (NYSE: NBG), Hellenic Telecommunications (NYSE: OTE), Coca-Cola HBC (NYSE: CCH), Teekay Corp. (NYSE: TK), Navios Maritime Holdings (NYSE: NM), Navios Maritime Acquisition (NYSE: NNA), Navios Maritime Partners L.P. (NYSE: NMM), Tsakos Energy Navigation Ltd. (NYSE: TNP).

Solution for Greece

Also, the ramifications of the Greek decision might not be as clear, traumatic or destructive as people, pundits and even economists describe. For instance, if the euro-zone were to fail completely, which is not as unlikely as the entrenched make it to seem, Greece’s early exit might prove helpful. On the other hand, a fascist state and/or weak leadership would find difficulty navigating the global economic environment. You see, nothing is perfectly black or white in this world, however we may attempt to simplify, and everything can be colored. Furthermore, the best solution for Greece, Europe and the global market should offer wise economic strengthening combined with sensible budget management, or the gray in between today’s two arguments.

Some might say that the premature celebration of Syriza’s Alexis Tsipras has done more to terrify global markets and perhaps even the Greeks who voted for him than to bring positive change so far. The sum I speak of would include PASOK and New Democracy leadership, who will now surely employ fear tactics to retrieve votes lost in the first election. Greece’s citizens have only to look at their stock market, with the Athens Stock Exchange General Index collapsed over the two days following the anomalous trade immediately after the election. The Global X FTSE Greece 20 ETF (NYSE: GREK) is down 13% from May 4th. The iShares S&P Europe 350 Index (NYSE: IEV), down another 1.5% into midday Wednesday, has been edging down on the omens of election polls for weeks. Though, Europe’s slipping into broad-reaching recession has certainly played a role in that.

While a secondary victory for the establishment might ease market concerns, it’s certainly not a given. On the other end of the spectrum, the disgruntled and disgusted Greek people may line up behind Syriza now. If the many tentacled monster of Greek dissatisfaction were to more perfectly unify, then it is possible Syriza could win the majority. In that case, with the extra 50 seats in Parliament given for the win and the assistance of other parties, it might also form a government. The result of that is clear, based on the emboldened braggadocio of Tsipras. He has stated he will tear up standing agreements with the troika, whose response has also clearly been laid out. It would be the end of the relationship between Greece and Europe, or at least the euro-zone. Greece would default on its debt and return to the drachma.

In my view, and reiterating yet again, neither of the two extremes needs be the fate of Greece. If the global community which makes up the IMF, and the European Union, intend for Greece’s realistic revival, they would set simpler terms for Greece to payback its debt. An extension of the timeline to payback would allow Greece to more gradually implement sensible austerity measures while also finding creative growth solutions. Instead, Greeks have had deep destructive austerity shoved down their throats. The economic feedback would not be harsh my way, and upheaval in Greece would die down. Its tourism industry would recover, and its economy would find its way toward expansion. With that result, Spain, Italy and Portugal would gain time to restore their own fiscal soundness, and the euro-zone likewise should solidify. Perhaps, then, the SPDR S&P 500 (NYSE: SPY), the SPDR Dow Jones Industrial Average (NYSE: DIA) and the PowerShares QQQ (Nasdaq: QQQ) might be in the green instead of red like they were Wednesday.

Editor's Note: This article should interest investors in National Bank of Greece (NYSE: NBG), Hellenic Telecommunications (NYSE: OTE), Coca-Cola HBC (NYSE: CCH), Teekay Corp. (NYSE: TK), Navios Maritime Holdings (NYSE: NM), Navios Maritime Acquisition (NYSE: NNA), Navios Maritime Partners L.P. (NYSE: NMM), Tsakos Energy Navigation Ltd. (NYSE: TNP), Overseas Shipholding Group (NYSE: OSG), International Shipholding (NYSE: ISH), Excel Maritime Carriers (NYSE: EXM), Safe Bulkers (NYSE: SB), Claymore/Delta Global Shipping ETF (NYSE: SEA), Genco Shipping & Trading (NYSE: GNK), Diana Shipping (NYSE: DSX), Danaos (NYSE: DAC), Tsakos Energy Navigation (NYSE: TNP), Ship Finance Int'l (NYSE: SFL), Nordic American Tanker (NYSE: NAT), Seaspan (NYSE: SSW), General Maritime (NYSE: GMR), DHT Maritime (NYSE: DHT), Brunswick (NYSE: BC), Marine Products Corp. (NYSE: MPX), DryShips (Nasdaq: DRYS), Top Ships (Nasdaq: TOPS), Eagle Bulk Shipping (Nasdaq: EGLE), Sino-Global Shipping (Nasdaq: SINO), Paragon Shipping (Nasdaq: PRGN), K-SEA Transportation Partners (NYSE: KSP), Euroseas (Nasdaq: ESEA), Star Bulk Carriers (Nasdaq: SBLK), Omega Navigation (Nasdaq: ONAV), Knightsbridge Tankers Ltd. (Nasdaq: VLCCF), TBS Int'l (Nasdaq: TBSI), Golar LNG (Nasdaq: GLNG), Claymore/Delta Global Shipping (Nasdaq: XSEAX), American Commercial Lines (Nasdaq: ACLI), Deutsche Bank (NYSE: DB), ITA (Nasdaq: ITUB), Banco Santander (NYSE: STD), Westpac Banking (NYSE: WBK), UBS (NYSE: UBS), Lloyd’s Banking Group (NYSE: LYG), Barclay’s (NYSE: BCS), Credit Suisse (NYSE: CS), Allied Irish Banks (NYSE: AIB), Banco Latinamerican (NYSE: BLX), Bank of America (NYSE: BAC), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), JP Morgan (NYSE: JPM), Morgan Stanley (NYSE: MS), European Equity Fund (NYSE: EEA), Vanguard European Stock Index (Nasdaq: VEURX), Powershares FTSE RAFI Europe (NYSE: PEF), Europe 2001 (NYSE: EKH), S&P Emerging Europe (NYSE: GUR), Ultrashort MSCI Europe (NYSE: EPV), Vanguard Europe Pacific (NYSE: VEA), Wisdomtree Europe SmallCap (NYSE: DFE), Wisdom Tree Europe Total Div (NYSE: DEB), iShares S&P Europe 350 (NYSE: IEV), Morgan Stanley Eastern Europe (NYSE: RNE), DWS Europe Equity A (Nasdaq: SERAX), DWS Europe Equity B (Nasdaq: SERBX), Fidelity Europe (Nasdaq: FEUFX), Fidelity Europe (Nasdaq: FIEUX), ICON Europe A (Nasdaq: IERAX), Pioneer Europe Fund (Nasdaq: PBEUX), ProFunds Europe 30 (Nasdaq: UEPIX), Putnam Europe A (Nasdaq: PEUGX), Rydex Europe 1.25x (Nasdaq: RYAEX).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Why Stocks Celebrated Disruptive European Elections

Based on the action of stocks Monday, it would seem investors favor the possibility that Europe might finally be rid of Greece. Or it may be that investors have seen the light, and have finally realized that the age of austerity was a dark one. Or, perhaps change of any sort would have been celebrated by a distressed market.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relevant tickers: NYSE: SPY, Nasdaq: QQQ, NYSE: GREK, OTC: HLTOY.PK, NYSE: IEV, NYSE: VGK, NYSE: EWG, NYSE: IEV, NYSE: EWQ, NYSE: DB, NYSE: STD, Nasdaq: ITUB, NYSE: UBS, NYSE: WBK, NYSE: LYG, NYSE: BCS, NYSE: CS, NYSE: AIB, NYSE: BLX, NYSE: NBG, NYSE: RY, NYSE: BFR, NYSE: IRE, NYSE: BMO, NYSE: CM, NYSE: ING, NYSE: C.

It's a Celebration?

European shares were mostly higher Monday, even after Greeks unseated their socialist rulers, PASOK, the ushers of austerity. So it would seem that more than their fear of a break down in confidence in the EU (that might drive Spanish and Italian bond yields higher), investors maybe worry about keeping a lumbering Greece within the group. But with France electing a socialist, who seems intent on leveling the playing field between the rich and poor, and who does not favor austerity, it would seem maybe something more important is afoot.

Bucking the trend, the Global X FTSE Greece 20 ETF (NYSE: GREK), Hellenic Telecommunications (OTC: HLTOY.PK) and Greek shares generally tumbled, as neither did the New Democracy party gain clear control. The result was likely due to the new democrats’ role in the current catastrophe. Instead, the Radical Left Coalition, or Syriza, finished second in Parliamentary voting. Anti-austerity parties, including even an anti-immigration organization, won seats at the cost of the mainstream, as Greeks expressed their frustration with austerity clearly.

But why are European shares higher, given that Greece could theoretically now reject the austerity prerequisites of European and IMF aid. The Vanguard MSCI Europe ETF (NYSE: VGK) rose 1% Monday, and the iShares S&P Europe 350 (NYSE: IEV) was up 0.8%. The iShares MSCI Germany Index (NYSE: EWG) gained 0.5% and Deutsche Bank (NYSE: DB) rose 1.6%. The popular view seems to be that Francois Hollande, the new French leader, might listen to the reason of German Chancellor Angela Merkel and others now that the election is over. However, I say there is more to it than that.

I think the market has spoken in its efficient and infinite wisdom, and what it is saying is that the age of austerity is over and good riddance to it. The French CAC 40 Index gained 1.65% and the iShares MSCI France Index (NYSE: EWQ) added 1.3% to its stature. American investors were confused, with the SPDR S&P 500 (NYSE: SPY) and the PowerShares QQQ (Nasdaq: QQQ) erasing initial losses. Maybe it’s just hope that’s selling to investors these days; perhaps change of any sort would be celebrated by a desperate market. In that case, when the high wears off and investors find not much has changed with regard to the lagging economy, stubborn unemployment and burdensome debt load, and on top of that, pressure builds on other nations on the fringe, the celebration should prove short-lived.

It could take time for prospective growth initiatives to have effect, so patience may wear thin. However, shifting the burden from the poor to the rich could be just a vote away for the French and the Greeks. That is precisely why there’s talk today of a potential run of money, with its destination divided, but its origination now decided. Money has been leaving Greece for some time now though, given the duration of its crisis. For France, it’s a new phenomenon. For Europe, it could be the way of the future, and for the United States, it could be a trend that catches on.

Article is relevant to Deutsche Bank (NYSE: DB), Banco Santander (NYSE: STD), ITA (Nasdaq: ITUB), UBS (NYSE: UBS), Westpac Banking (NYSE: WBK), Lloyds Banking Group (NYSE: LYG), Barclays (NYSE: BCS), Credit Suisse (NYSE: CS), Allied Irish Bank (NYSE: AIB), Banco Latinamericano (NYSE: BLX), National Bank of Greece (NYSE: NBG), Royal Bank of Canada (NYSE: RY), BBVA Banco Frances (NYSE: BFR), The Bank of Ireland (NYSE: IRE), Bank of Montreal (NYSE: BMO), Canadian Imperial Bank of Commerce (NYSE: CM), ING Groep (NYSE: ING), Citigroup (NYSE: C).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Enter Political Risk

Many in the media are attributing nascent softness in European and also American shares to whatever happens to be in the news that day or this week. While many of these issues are certainly important to the market, like for instance the latest Spanish bond sale or the European recession foreseen here for months now, there’s a major issue that short-sightedness has not allowed into perspective. Political risk is increasingly entering the frame, and it threatens to change the game for Europe, the United States and much of the world this year and beyond.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers include: Vanguard MSCI Europe ETF (NYSE: VGK), European Equity Fund (NYSE: EEA), iShares MSCI France Index (NYSE: EWQ), Global X FTSE Greece 20 ETF (NYSE: GREK), iShares MSCI Spain Index (NYSE: EWP), iShares MSCI Germany Index (NYSE: EWG), iShares MSCI Italy Index (NYSE: EWI), SPDR S&P 500 (NYSE: SPY) and SPDR Dow Jones Industrial Average (NYSE: DIA).

Political Risk of European Fascism

In times of duress, austerity stricken citizens tend to vote with more than just boisterous protesting; you know, like the now commonplace (in Greece) burning of automobiles, breaking of storefront windows and hurling of stones at your friendly neighborhood cop. While many nations have put off long awaited elections, this year, the ballots will hit the fan.

This weekend offered the first splattering in a big, bad and potentially disgusting way for investors. The French elections could break up the French-German connection lovingly known as Merkozy. French PM Nicholas Sarkozy and German Chancellor Angela Merkel have with their concerted effort led Europe through its most difficult time since the Second World War. In fact, they have very likely kept the European Union together, though in a weakened and more fragile state. It is precisely this popular opinion that threatens to unseat the French connection, with Sarkozy expected to be overcome by Socialist Francois Hollande, who this weekend scored a first round victory over the incumbent Sarkozy. The election concludes on May 6, which is shaping up to be like a sort of doomsday for Europe.

You see, on May 6, the Greeks will also very likely unseat their leadership. The choice for Europeans continues to be represented by the same old faces from the same old political parties, which are adept at dishing out whatever the people’s palette desires on any given day. For instance, in Greece today, the New Democracy Party is talking up growth initiatives over the sour tasting austerity their socialist counterparts in PASOK have been forced to serve. Yet, it was under New Democracy that Greece forged its economic data to sneak into the euro zone. I’m not sure the Greek people are as forgetful as politicians may think.

The problem is that for Greeks, and others, there are very few alternative digestible options to choose from. Still, desperation has driven many to desperate affiliation. The communists have even found some support, but Marxism has been so effectively disproven by history that they really waste national resources by their organization. It may be a good thing, though, as their existence keeps radical opposition fragmented.

Extreme right wing radical parties have been quick to spring up across Europe with common political themes, notably anti-immigration, anti-assimilation and of course, anti-austerity. So far, these fascist parties have come up against the broadly accepted wisdom of the day, which is that globalization and common civilization lead to prosperity. However, I have to question how much longer such anchors will hold against the storm of economic recession (depression for some) that is tormenting Europeans.

More than 50% of Greece’s young adults are unemployed and tired of the old guard, which is represented for them by both of the popular parties. Youth unemployment is a common theme running across Europe, and if the young are inspired enough to assault policemen, then they’re inspired enough to vote. In France, the extreme right wing candidate Marine Le Pen received 18% of the popular vote this weekend, vividly illustrating the new found favor of fascism throughout the region. However, for France, full-blooded fascism cannot take comfort hold of the nation, due to its large immigration driven Islamic minority. Still, the fascist voice is now needed by both major parties to overcome the other, and so Madame Le Pen garners leverage which she may use to insidiously gain more power.

Those voices which would smother this argument and the threat of fascism with the usual description of the disjointed membership of the “far right,” which includes various extremists, anarchists, racists and religious conservatives, would miss the critical point. What unites these varied groups is dissatisfaction with the ruling parties, and that is a rapidly increasing commonly shared disgust throughout the streets of Europe. It will only take further strife, which is expected here, combined with sensible sounding figure heads atop these parties to drive radical change in Europe, and that is not a farfetched or distant possibility.

For now, the seemingly smartest voices continue to support the policies of the established parties. The problem is that the comfort of their seats has made these politicians too complacent. They are so sure of themselves and the ways of today, that they are likely to be overrun like deaf blind men standing before a herd of charging elephants. They are unable to clearly see that the usual lunch meetings with the usual experts providing the usual economic advice will not suffice these dynamic times.

What fascism will likely bring to Europe and eventually the world will be an undoing of civilization. The progress of the world since World War II could be undone in a decade. The European Union may hold in some form for the sake of mutual protection against the dark shadows that lurk to the east, but despite its similarly sensible economic reasoning, the euro zone would likely disintegrate.

The polar opposite direction, which I should discuss separately, could lead desperate European leaders to strike a stronger political union while they still can. Combining in such a manner, however it may make sense to the desperate, should also support the growth of the region’s cancer across now somewhat healthy states. I expect that such a unionization effort would tie the region, and drown the entire group together. That’s because I expect the European Central Bank (ECB) would then get its hands dirty, and the excessive creation of fiat currency combined with other factors I see developing geopolitically, could undo the West and the financial system entirely, and perhaps global trade as well. I will write more about this truly undesirable possibility in a dedicated article soon enough.

While economic data pointing to decline across Europe is definitely playing a key role in the day’s activity, it should have been expected by readers of my column. You read others to know what is going on today, and you read me to know what will happen tomorrow.

Today or not long from now, the realization that the people may not stand much longer behind ruling regimes, and with sloppy fascism clawing at the door, will drive concern about civilization and spread chaos across securities markets. At the hour of scribbling here, the Vanguard MSCI Europe ETF (NYSE: VGK) and the European Equity Fund (NYSE: EEA) were each down between 2% and 3%. For the nation in the news, the iShares MSCI France Index (NYSE: EWQ) was down more than 3%. The Global X FTSE Greece 20 ETF (NYSE: GREK) was off 2.6% and the iShares MSCI Spain Index (NYSE: EWP) was lower 3.2%, as bond spreads widened across Europe. The levity of the matter is even more apparent as we view the 3.6% drop in the iShares MSCI Germany Index (NYSE: EWG) and the 3.9% collapse of the iShares MSCI Italy Index (NYSE: EWI). In my opinion, well-founded contagion concerns have the SPDR S&P 500 (NYSE: SPY) and the SPDR Dow Jones Industrial Average (NYSE: DIA) lower more than 1%.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Romney's Iowa Performance Primes Stocks for Gains

Wednesday’s market movement should be significantly driven by the Iowa Caucus results, and given Mitt Romney’s lead in New Hampshire, the stock market has solid support from politics over the near-term.

If the tally in Iowa were to show an electable, presidential and most importantly, a Wall Street favorite as Iowa’s winner, the market should rally. Thus, the shortfall of Ron Paul, not a likely Wall Street favorite given his views on the Federal Reserve, should find approval from the market. Furthermore, the strong performance of Mitt Romney should start stocks higher on Wednesday. That’s if investors understand the fact that Romney’s position on how to handle “Obamacare” is the one that is most likely to supplant it, given possible Supreme Court cohesion.

Rick Santorum has a chance to perform decently through the national primary process and his speech Tuesday night was moving, but it appears Romney has a better chance in the general election. Look for stocks to support the GOP direction, if the Street gets Romney’s wise health care strategy.

This article should interest investors in The New York Times (NYSE: NYT), Gannett Co. (NYSE: GCI), A.H. Belo (NYSE: AHC), Daily Journal (NYSE: DJCO), Journal Communications (NYSE: JRN), Lee Enterprises (NYSE: LEE), Media General (NYSE: MEG), E.W. Scripps (NYSE: SSP), McClatchy Co. (NYSE: MNI), The Washington Post (NYSE: WPO), Dex One (Nasdaq: DEXO), Martha Stewart Living (NYSE: MSO), Meredith (NYSE: MDP), Private Media (Nasdaq: PRVT), Reed Elsevier (NYSE: ENL), Reed Elsevier Plc (NYSE: RUK), Dolan Co. (NYSE: DN), Disney (NYSE: DIS), DreamWorks Animation (NYSE: DWA), Cinemark Holdings (NYSE: CNK), Regal Entertainment (NYSE: RGC), RealD (NYSE: RLD), Lions Gate Entertainment (NYSE: LGF), Rentrak (Nasdaq: RENT), Carmike Cinemas (Nasdaq: CKEC), LYFE Communications (OTC: LYFE.OB), New Frontier Media (Nasdaq: NOOF), Public Media Works (OTC: PUBM.OB), Independent Film Development (OTC: IFLM.OB), Point 360 (Nasdaq: PTSX), Seven Arts Pictures (Nasdaq: SAPX), Affinity Medianetworks (OTC: AFFW.OB), Time Warner (NYSE: TWX), News Corp. (Nasdaq: NWSA), Vivendi (Paris: VIV.PA), Liberty Starz Group (Nasdaq: LSTZA), McGraw-Hill (NYSE: MHP), Pearson Plc (NYSE: PSO), John Wiley & Sons (NYSE: JW-A, NYSE: JW-B), Scholastic (Nasdaq: SCHL), Courier (Nasdaq: CRRC), Noah Education (NYSE: NED), Peoples Educational Holdings (Nasdaq: PEDH), Barnes & Noble (NYSE: BKS), Amazon.com (Nasdaq: AMZN) and Books-A-Million (Nasdaq: BAMM).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Today’s Republican Disconnect with America

I sat up late the other night watching the C-SPAN coverage of the House of Representatives debate on the payroll tax break and unemployment benefit extensions. I was appalled by the Republican positions, and the recurring tone I keep hearing from the party I use to call my own and whose conservative values I continue to agree with. I’m now an independent due to the perversions that have eroded each party’s core message. Economically speaking, I see neither current version of the Republican nor Democratic Party as holding the perfect cure to what ails us. While another article might discuss my concern with the Democratic Party’s embrace and promotion of immoral practices for the sake of personal liberation, this article is focused on the Republican disconnect with America or the great poverty stricken segment of America. This broken rail was once again evidenced in the latest legislative lunacy.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Article interests NYSE: DIS, NYSE: DWA, NYSE: CNK, NYSE: RGC, NYSE: RLD, NYSE: LGF, Nasdaq: RENT, Nasdaq: CKEC, Nasdaq: LSTZA, NYSE: MHP, NYSE: PSO, NYSE: JW-A, NYSE: JW-B, Nasdaq: SCHL, Nasdaq: CRRC, NYSE: NED, Nasdaq: PEDH, NYSE: BKS, Nasdaq: AMZN, Nasdaq: BAMM, NYSE: BGP, OTC: LYFE.OB, Nasdaq: NOOF, OTC: PUBM.OB, OTC: IFLM.OB, Nasdaq: PTSX, Nasdaq: SAPX, OTC: AFFW.OB, NYSE: TWX, Nasdaq: NWSA, Paris: VIV.PA, NYSE: NYT, NYSE: GCI, NYSE: AHC, NYSE: DJCO, NYSE: JRN, NYSE: LEE, NYSE: MEG, NYSE: SSP, NYSE: MNI, NYSE: WPO, Nasdaq: DEXO, NYSE: MSO, NYSE: MDP, Nasdaq: PRVT, NYSE: ENL, NYSE: RUK and NYSE: DN.

Today's Republican Disconnect with America

In case you’ve been caught up in holiday shopping or catching up with work before your holiday vacation, our Congress is currently entangled in a messy legislative debate over the future of the payroll tax cut and unemployment insurance benefits. Basically, last year’s program extensions need to be renewed again this year, or those temporary benefits will expire. If that happens, Americans will face new burdens at a still vulnerable time for our economy.

The Payroll Tax break against Social Security payments would lift that rate back up to 6.2% from its current 4.2% break rate. Your shock is well-founded, as those tax cuts are shorting the same Social Security program that is already handicapped if not doomed. And yes, we are underfunding it even worse than usual today as part of an effort to stimulate spending and the economy. There is, however, a new budget-minded focus within Congress that is seeking ways to fund these cuts. For instance, the savings from the Iraq troop withdrawal have been put forth as one potential source. The Democrats would like to bank those savings against the budget deficit and instead institute a new surtax on those Americans with incomes of more than $1 million. As you may have guessed, the Republican Party opposes any tax increase, even if it be upon those who can afford to offer a helping hand now.

This legislative issue weighs for Americans who are already earning a steady income, though it is surely critical to part-timers with a shortage of fund flows. Another issue at hand could more significantly affect America, as it supports Americans who have no other source of income currently. It is what keeps people housed and from committing crimes of necessity; it is what keeps hope alive.

Unemployment benefits have proven inadequate for the massive pool of long-term unemployed Americans displaced by this deep economic recession and sluggish follow through. With the unemployment rate last listed at 8.6%, though arguably closer to 8.8%, given the drop in workforce count in November, it is clearly not yet time to cut off the unemployment benefit extension program (which takes insured unemployment to 99 weeks). The House Republicans are seeking to pass legislation that will ease coverage to 59 weeks after January 1. Of course, the percentage level of the unemployed more importantly represents about 13.3 million Americans, not including the disenchanted and desperate. Furthermore, the Republican version of aid would reportedly leave more than 3 million Americans high and dry immediately, with no other source of income to make mortgage or rent payments, or basically to survive.

Believe it or not, that’s not where the disconnect ends. You see, Republicans also want to make it harder for those people, who would still qualify, to qualify for unemployment insurance benefits. This obstacle to the critical aid that pays the rent for many who are jobless through little fault of their own would present itself via mandatory drug tests. The argument posed on the floor of the House for this was “to ensure benefit recipients are employable,” because if they are on drugs then they are likely to lose their next job. In other words, they are deemed to have a more important problem that should be addressed first, before our fellow Americans are awarded the insurance benefits they paid for through regular cuts from their weekly pay checks. Don’t forget that we pay directly for unemployment insurance; it’s not an unfunded social program. Next, I suppose, Republicans would ask seniors to pass a drug test to determine whether they should receive their hard-earned social security checks. This is obscene!

However, that’s still not where the lunacy ends. The bill passed by House Republicans, which was doomed to fail in the Senate or by the President’s pen, also calls for the building of the Keystone XL Pipeline, which, oh by the way, I support. As you might have guessed though, that was not in last year’s legislation. Rather, it’s the effort of the GOP to stick an energy action into an employment bill under the premise that it is a job creator. Clearly, the construction of a pipeline would create jobs, whether the tens of thousands or the 100K to 280K long-term total touted by some in the Republican Party, or about 20,000 or so that is more likely immediately. But it is misplaced within this bill. In fact, each particle of this legislation should be independent of one another, for the purpose of clarity and the sake of the American people.

The President and the Democrats were terrified that the House Republicans would pass this bill and then leave town (before the Senate could pass its own version), thus leaving the onus of unemployment benefits on the shoulders of the President and his party. Americans wouldn’t remember the pipeline or the drug test if the Senate voted the bill down or if the President vetoed it as promised. Rather, they would remember that “the Democrats and President Obama killed a critical bill, and thus left unemployed Americans helpless while raising taxes on the rest of us.” So, the Democrats held up the 2012 budget through political means, threatening to shut down the government and probably incite a sovereign rating downgrade, “because the Republicans went home for the holidays and left the nation’s business undone.”

One thing remains clear. The nation’s capitol is still disjointed and has not learned the lesson it should have by the hands of Standard & Poor’s (NYSE: MHP). We cannot afford to leave our fate now in the hands of Fitch or Moody’s (NYSE: MCO), who with S&P, have the power to drive paradigm shift in global confidence in American treasuries and the dollar. It’s about time the rhetoric ended in Washington and our elected representatives quit the political games and got some important work done. Break these bills apart and vote on them individually as they deserve, or at least resolve to form a best fit and get Americans what they need now. Remember, first do no harm!

Please share your opinion via the comment tab below. And let’s have some fun: please use this opportunity to guess who I favor for President in 2012.

This article should interest investors in The New York Times (NYSE: NYT), Gannett Co. (NYSE: GCI), A.H. Belo (NYSE: AHC), Daily Journal (NYSE: DJCO), Journal Communications (NYSE: JRN), Lee Enterprises (NYSE: LEE), Media General (NYSE: MEG), E.W. Scripps (NYSE: SSP), McClatchy Co. (NYSE: MNI), The Washington Post (NYSE: WPO), Dex One (Nasdaq: DEXO), Martha Stewart Living (NYSE: MSO), Meredith (NYSE: MDP), Private Media (Nasdaq: PRVT), Reed Elsevier (NYSE: ENL), Reed Elsevier Plc (NYSE: RUK), Dolan Co. (NYSE: DN), Disney (NYSE: DIS), DreamWorks Animation (NYSE: DWA), Cinemark Holdings (NYSE: CNK), Regal Entertainment (NYSE: RGC), RealD (NYSE: RLD), Lions Gate Entertainment (NYSE: LGF), Rentrak (Nasdaq: RENT), Carmike Cinemas (Nasdaq: CKEC), LYFE Communications (OTC: LYFE.OB), New Frontier Media (Nasdaq: NOOF), Public Media Works (OTC: PUBM.OB), Independent Film Development (OTC: IFLM.OB), Point 360 (Nasdaq: PTSX), Seven Arts Pictures (Nasdaq: SAPX), Affinity Medianetworks (OTC: AFFW.OB), Time Warner (NYSE: TWX), News Corp. (Nasdaq: NWSA), Vivendi (Paris: VIV.PA), Liberty Starz Group (Nasdaq: LSTZA), McGraw-Hill (NYSE: MHP), Pearson Plc (NYSE: PSO), John Wiley & Sons (NYSE: JW-A, NYSE: JW-B), Scholastic (Nasdaq: SCHL), Courier (Nasdaq: CRRC), Noah Education (NYSE: NED), Peoples Educational Holdings (Nasdaq: PEDH), Barnes & Noble (NYSE: BKS), Amazon.com (Nasdaq: AMZN) and Books-A-Million (Nasdaq: BAMM).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Papademos on a Stick

It seems Greeks are coming to grips with the reality that their new leader, Lucas Papademos, may offer a different face to watch on television, but he comes with even stauncher support of the troika’s austerity medicine than the embattled George Papandreou. Indeed, the European Union’s man and once #2 at the European Central Bank (ECB) has openly stated that exit from the euro zone is not an option. Well, Greeks are learning that this means the austerity forced down their throats is also not clearing out. So, it seems, it may not be long before the popular support for Papademos turns out to actually be a sort of marinade.

Our founder Markos Kaminis earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: NYSE: NBG, NYSE: OTE, NYSE: CCH, NYSE: TK, NYSE: NM, NYSE: NNA, NYSE: NMM, NYSE: TNP, NYSE: OSG, NYSE: ISH, NYSE: EXM, NYSE: SB, NYSE: SEA, NYSE: GNK, NYSE: DSX, NYSE: DAC, NYSE: TNP, NYSE: SFL, NYSE: NAT, NYSE: SSW, NYSE: GMR, NYSE: DHT, NYSE: MPX, Nasdaq: DRYS, Nasdaq: TOPS, Nasdaq: EGLE, Nasdaq: SINO, Nasdaq: PRGN, NYSE: KSP, Nasdaq: ESEA, Nasdaq: SBLK, Nasdaq: ONAV, Nasdaq: VLCCF, Nasdaq: TBSI, Nasdaq: GLNG, Nasdaq: XSEAX, Nasdaq: ACLI, NYSE: DB, Nasdaq: ITUB, NYSE: STD, NYSE: WBK, NYSE: UBS, NYSE: LYG, NYSE: BCS, NYSE: CS, NYSE: AIB, NYSE: BLX, NYSE: BAC, NYSE: C, NYSE: GS, NYSE: JPM, NYSE: MS, NYSE: EEA, Nasdaq: VEURX, NYSE: PEF, NYSE: EKH, NYSE: GUR, NYSE: EPV, NYSE: VEA, NYSE: DFE, NYSE: DEB, NYSE: IEV, NYSE: RNE, Nasdaq: SERAX, Nasdaq: SERBX, Nasdaq: FEUFX, Nasdaq: FIEUX, Nasdaq: IERAX, Nasdaq: PBEUX, Nasdaq: UEPIX, Nasdaq: PEUGX, Nasdaq: RYAEX

A Political Sacrificial Lamb

Political jockeying ahead of a likely February election has Greece’s new Prime Minister, Lucas Papademos, being held out on a stick like a souvlaki cooking over the fires of Greek rioters, the IMF and Greece’s European brothers. Papandreou’s referendum concession was either a show of pure stupidity, unequivocal ethical heart or political genius. From the political perspective, Papandreou’s calling on the Greek people to decide whether to go forth with the European plan, and thus accept austerity and also ongoing euro zone membership, forced Greeks to take a second look at the situation and also at the PASOK Party. His stepping back has placed PASOK into a position that allows for potential reconciliation come election time.

New Democracy, not missing a beat and with its eye on February, has been publicly promoting an idea to ditch the digging austerity plan and to instead take a sort of American Republican approach to promote economic growth and trust in trickle-down economics; though the Greek version might look more like Chios mastic’s slow and painful ooze down a dry bark. The other, more radical parties are of course offering more radical solutions.

Needless to say, the political commotion has the troika terrified that tranches of capital dished out to Greece between now and February might end up wasted, sort of like how Zorbas spent his boss’ supply money on drink and women. So the IMF is refusing to dole out any more funds before a pledge is signed by the major political parties, if not all of them, to keep on the path outlined. That path, for Greeks, has been relayed as including the implementation of all already passed austerity measures, but the introduction of no new burden upon them.

So, it would seem Papademos is cooking like a souvlaki on a stick, and it would appear Greeks will have their kabob well done by February. The current popular support of him is thus near certain to turn to a lynching party, with the technocrat set to burn at the stake. Both New Democracy and PASOK are more than willing to step away now to allow the Greeks to pepper up Papademos, get their fill of him, and offer sweet dessert to them in February. But the sugar for that dessert must be acquired now from German and French patisseries.

The lesson long forgotten but to be learned anew is for governments across the globe. The lost wisdom is that the mismanagement of the people’s money results in uprising. The people will turn everything upside down and start all over again before they will bear the pain for the mistakes of faulty leadership.

Editor's Note: This article should interest investors in National Bank of Greece (NYSE: NBG), Hellenic Telecommunications (NYSE: OTE), Coca-Cola HBC (NYSE: CCH), Teekay Corp. (NYSE: TK), Navios Maritime Holdings (NYSE: NM), Navios Maritime Acquisition (NYSE: NNA), Navios Maritime Partners L.P. (NYSE: NMM), Tsakos Energy Navigation Ltd. (NYSE: TNP), Overseas Shipholding Group (NYSE: OSG), International Shipholding (NYSE: ISH), Excel Maritime Carriers (NYSE: EXM), Safe Bulkers (NYSE: SB), Claymore/Delta Global Shipping ETF (NYSE: SEA), Genco Shipping & Trading (NYSE: GNK), Diana Shipping (NYSE: DSX), Danaos (NYSE: DAC), Tsakos Energy Navigation (NYSE: TNP), Ship Finance Int'l (NYSE: SFL), Nordic American Tanker (NYSE: NAT), Seaspan (NYSE: SSW), General Maritime (NYSE: GMR), DHT Maritime (NYSE: DHT), Brunswick (NYSE: BC), Marine Products Corp. (NYSE: MPX), DryShips (Nasdaq: DRYS), Top Ships (Nasdaq: TOPS), Eagle Bulk Shipping (Nasdaq: EGLE), Sino-Global Shipping (Nasdaq: SINO), Paragon Shipping (Nasdaq: PRGN), K-SEA Transportation Partners (NYSE: KSP), Euroseas (Nasdaq: ESEA), Star Bulk Carriers (Nasdaq: SBLK), Omega Navigation (Nasdaq: ONAV), Knightsbridge Tankers Ltd. (Nasdaq: VLCCF), TBS Int'l (Nasdaq: TBSI), Golar LNG (Nasdaq: GLNG), Claymore/Delta Global Shipping (Nasdaq: XSEAX), American Commercial Lines (Nasdaq: ACLI), Deutsche Bank (NYSE: DB), ITA (Nasdaq: ITUB), Banco Santander (NYSE: STD), Westpac Banking (NYSE: WBK), UBS (NYSE: UBS), Lloyd’s Banking Group (NYSE: LYG), Barclay’s (NYSE: BCS), Credit Suisse (NYSE: CS), Allied Irish Banks (NYSE: AIB), Banco Latinamerican (NYSE: BLX), Bank of America (NYSE: BAC), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), JP Morgan (NYSE: JPM), Morgan Stanley (NYSE: MS), European Equity Fund (NYSE: EEA), Vanguard European Stock Index (Nasdaq: VEURX), Powershares FTSE RAFI Europe (NYSE: PEF), Europe 2001 (NYSE: EKH), S&P Emerging Europe (NYSE: GUR), Ultrashort MSCI Europe (NYSE: EPV), Vanguard Europe Pacific (NYSE: VEA), Wisdomtree Europe SmallCap (NYSE: DFE), Wisdom Tree Europe Total Div (NYSE: DEB), iShares S&P Europe 350 (NYSE: IEV), Morgan Stanley Eastern Europe (NYSE: RNE), DWS Europe Equity A (Nasdaq: SERAX), DWS Europe Equity B (Nasdaq: SERBX), Fidelity Europe (Nasdaq: FEUFX), Fidelity Europe (Nasdaq: FIEUX), ICON Europe A (Nasdaq: IERAX), Pioneer Europe Fund (Nasdaq: PBEUX), ProFunds Europe 30 (Nasdaq: UEPIX), Putnam Europe A (Nasdaq: PEUGX), Rydex Europe 1.25x (Nasdaq: RYAEX).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Taxes and the Deficit Seed of Corruption

The President presented his plan to trim the deficit Monday, and inspired this article in the process. President Obama has been attempting to find revenues for the nation’s balance budgeting effort, and the easy score would be from taxes, or rather the killing of “temporary” tax breaks for higher earning Americans. Those are the so-called Bush tax cuts, which accompanied the silly $300 checks the short-sighted economic crash test dummies in DC cooked up before President Bush left office.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Taxes and the Deficit Seed of Corruption

Relative tickers include NYSE: XOM, NYSE: CVX, NYSE: COP, NYSE: HAL, NYSE: AET, NYSE: NBR, NYSE: NE, NYSE: RIG, NYSE: BHI, NYSE: MCO, NYSE: MHP, NYSE: MRK, NYSE: PFE, NYSE: UNH, NYSE: WLP, NYSE: CAH, NYSE: MHS, NYSE: HUM, NYSE: GSK, NYSE: BMY, Nasdaq: ESRX, NYSE: WPO, NYSE: NYT, NYSE: BRK-A, NYSE: BRK-B.

You’ll recall that those tax cuts were supposed to last for just a short time, but Republicans are saying they are still needed. Democrats have determined that they have hardly been useful to date, and that higher earning Americans can afford to help the nation balance its budget by simply going back to old standard rates. The typical Republican rebuttal to this is that these taxes also impact small businessmen and kill hiring. In his latest proposal, the President shown light on this debate, discussing the so-called “class warfare” commentary his revenue targeting has inspired. But the President notes the uber-wealthy have tax savvy (read expensive accountants), which leads to effective tax rates that are often less than the menial staff they employ. Famed billionaire and Chairman of Berkshire Hathaway (NYSE: BRK-B) Warren Buffet verified this argument in his disclosure that his secretary has a higher effective tax rate than he does (NYSE: BRK-A).

I’m on the President’s side on this one. I agree that it makes more sense for the richest Americans to support the budget balancing effort than it does for social security-check dependent senior citizens to. It is certainly not a black and white issue, though, and contributions can be found elsewhere, bit by bit, including from killing unnecessary and purported unethical projects like abortion support. But, I also want to see the oil companies like Exxon Mobil (NYSE: XOM) lose their unnecessary and unethical subsidies. If you are going to call for doing what’s right, like the president did today and like his opponents will rebut, then do what’s right.

However, keep in mind that the more items included in any legislation, only increase the difficulty in getting its passage. And the two items just mentioned, and always reported by the popular press, offer only a tiny real capital raising opportunity. For this reason, it seems clear entitlements cannot go completely unharmed. But the harm can be limited and targeted in ways that might even make more sense for today’s world. However, the President (and I) cannot justify current tax rates for higher earning Americans while snipping away at welfare and social security, especially in times like these!

Let’s see compromise and comprehensive spending reform, but while avoiding damage to economic growth and without putting our seniors on the street. It’s a challenging task, but somehow, I suspect there’s enough fat in that budget to allow for it. We can find a way to keep the effort from impacting small businessmen operating on the fringe; it would only take a little creative thought and design. Once a Reagan Republican, I’m not a fan of taxes, but let’s call a spade a spade. If you want to balance the budget at a time when the economy needs support, something I said very clearly we shouldn’t do time and again, then we have to look at this honestly. Now that we’ve given Standard & Poor’s (NYSE: MHP) the seed of corruption to play with, we have to find the monies to pay with.

The broader indexes were lower before the President spoke and are down sharply at this hour, with the Dow off 1.6%. Still, energy and health care, which would be more sensitive to the President’s speech, are down a bit more:

Relative Stocks	Monday’s % Change
(Prices measured at 2:10 PM ET)
Exxon Mobil (NYSE: XOM)	-2.4%
Chevron (NYSE: CVX)	-2.3%
Halliburton (NYSE: HAL)	-4.0%
ConocoPhillips (NYSE: COP)	-2.0%
Transocean (NYSE: RIG)	-2.7%
Noble (NYSE: NE)	-3.1%
Nabors (NYSE: NBR)	-6.0%
Baker Hughes (NYSE: BHI)	-3.3%
Aetna (NYSE: AET)	-1.5%
Moody’s (NYSE: MCO)	-1.3%
McGraw-Hill (NYSE: MHP)	-0.7%
Merck (NYSE: MRK)	-2.2%
Pfizer (NYSE: PFE)	-0.9%
MedcoHealth (NYSE: MHS)	-0.3%
Humana (NYSE: HUM)	-0.8%
Cardinal Health (NYSE: CAH)	-0.7%
GlaxoSmithKline (NYSE: GSK)	-0.5%
Bristol-Myers Squibb (NYSE: BMY)	+0.2%
UnitedHealth (NYSE: UNH)	-1.9%
WellPoint (NYSE: WLP)	-1.9%
Express Scripts (Nasdaq: ESRX)	-0.3%
Washington Post (NYSE: WPO)	-2.7%
New York Times (NYSE: NYT)	-4.8%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Bad Moon Rising in Labor and Economy

There’s a bad moon rising, as seen in the weekly jobs data from the Department of Labor (DOL). Weeks ago, we warned that this economic metric might this time be a leading indicator of recession in such a sensitive labor environment, which characterizes the day. Unfortunately, the latest data seems to support our concerns. And, the number of folks receiving benefits is on the decline nonetheless, making for a bad moon rising of potential civil concern. If politicians continue to prioritize selfish individual and party goals, and do not change the tone of politics to one of unity and progression for the nation’s sake, they risk sending this crisis into a new and more dangerous phase. Mark my words, and do all you can to prevent it, or the images we see of Greek street fires could emanate in the future from Detroit and LA.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: NYSE: RHI, NYSE: KFY, NYSE: MAN, NYSE: MWW, Nasdaq: KELYA, Nasdaq: JOBS, NYSE: JOB, Nasdaq: CECO, Nasdaq: PAYX, NYSE: ASF, Nasdaq: KFRC, NYSE: TBI, NYSE: DHX, NYSE: SFN, NYSE: CDI, Nasdaq: CCRN, Nasdaq: ASGN, NYSE: AHS, Nasdaq: BBSI, Nasdaq: HHGP, NYSE: SRT, Nasdaq: RCMT, Nasdaq: VSCP, OTC: ASRG.OB, OTC: MCTH.OB, OTC: IGEN.OB, OTC: STJO.OB, OTC: TNUS.OB, Nasdaq: TSTF, OTC: STTH.PK, OTC: PSRU.OB, OTC: CRRS.OB

Bad Moon Rising in Labor and Economy

The DOL reported Weekly Jobless Claims for the week ending September 10 increased by 11,000, to 428K. Last week’s data was even revised higher, to 417K, from 414K. As usual, economists held close to the prior week result in their forecasting for this week, and so a consensus estimate of 412K was off. The trend is clear here now, with the four-week moving average up to 419,500, up 4K this week alone.

As in previous data, the number of insured unemployed decreases more often than it rises of late. In my estimation, this is not the result of improving employment, but because of other issues. Firstly, the long-term unemployed are outlasting their extended unemployment insurance benefits. Secondly, red tape and tight regulation at the street level are likely leading struggling Americans to fall out of qualification for the benefits they are so dependent upon. The government even dares to audit these people and ask for money back, while keeping tax breaks for the richest Americans in place. And thirdly, some folks are finding whatever work they can and leaving their only slightly less valuable benefits behind. My ventures into Harlem and my work with the poor have shown these things to be true.

The insured unemployment rate stuck at 3.0% this last week, but the number decreased by 12K. Of those people receiving a benefit of some sort, including unemployment insurance extensions, the number fell by 25,033, to 7.1 million Americans in the August 27 period. On the surface, this looks like good news, but we know better.

Extended benefits were still available in Alabama, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia, and Wisconsin during the week ending August 27. However, how many Americans are nearing their week limit for this long-standing, foreclosure mitigating, welfare preventing, homelessness negating and civil unrest halting assistance?

If we do not either get these long-term unemployed Americans back to work, or keep the money flowing to them, we face increasing likelihood of civil unrest, especially heading into the election season. The unsettling events that are occurring overseas in nations with higher unemployment and longer sitting indigestion, are nearing the realm of possibility in the U.S. as well now. Distaste for Washington is mutating into pure hatred, and what has happened on the fringe, acts of “insanity” by unstable individuals, could then become possible for stable but financially troubled people.

We need to cure this thing today, and politics must change tone to a more progressive message of national unity. Otherwise, the directional and polarizing messages of political parties will incense acts of desperation and push chaos to replace civility in our great nation. Any politician with a true love for his country would prioritize his country now. The tone of political debate must remain civil and the language must be responsibly chosen. Recent words by good men, but poorly chosen, like from union leader James Hoffa over Labor Day, not to mention fringe Tea Party fire-starters, are dangerous. Making a political point is one thing, but telling crowds to “take out” Tea Party “sons of bitches,” as Hoffa did, can start riots. We do not need that spark to kindle the dry wood of dissatisfaction stacked high across America.

As always, I like to provide readers with the data from the most troubled states:

The highest insured unemployment rates in the week ending August 27 were in Puerto Rico (4.4), Pennsylvania (4.2), New Jersey (4.0), California (3.7), Connecticut (3.7), Oregon (3.5), Rhode Island (3.5), Nevada (3.4), Alaska (3.3),and New York (3.2).

The largest increases in initial claims for the week ending September 3 were in Kansas (+1,969), North Carolina (+1,450), Washington (+1,443), New Jersey (+1,324), and Texas (+1,239) while the largest decreases were in New York (-2,854), South Carolina (-2,118), Puerto Rico (-1,611), California (-576), and Virginia (-216).

The stocks of employment relative firms and business services are generally higher today due to their sensitivity to the economy, and given the positive news out of Europe, which has the Dow also higher by 1.6%.

Movement of Labor & Business Services Stocks
Robert Half (NYSE: RHI)	2.1%
Korn Ferry (NYSE: KFY)	1.5%
Monster Worldwide (NYSE: MWW)	2.1%
Manpower (NYSE: MAN)	3.5%
51Job Inc. (Nasdaq: JOBS)	2.1%
Paychex (Nasdaq: PAYX)	3.0%
Kforce (Nasdaq: KFRC)	Unch.
TrueBlue (NYSE: TBI)	1.3%
Dice Holdings (NYSE: DHX)	4.4%
Kelly Services (Nasdaq: KELYA)	1.7%
CDI Corp. (NYSE: CDI)	-0.6%
Cross Country Healthcare (Nasdaq: CCRN)	3.7%
On Assignment (Nasdaq: ASGN)	1.1%
AMN Healthcare Services (NYSE: AHS)	1.4%
Barrett Business Services (Nasdaq: BBSI)	1.4%
Hudson Highland Group (Nasdaq: HHGP)	2.0%
StarTek (NYSE: SRT)	0.6%
RCM Technologies (Nasdaq: RCMT)	1.7%
VirtualScopics (Nasdaq: VSCP)	-0.8%
American Surgical (OTC: ASRG.OB)	Unch.
Medical Connections (OTC: MCTH.OB)	Unch.
iGen Networks (OTC: IGEN.OB)	Unch.
St. Joseph (OTC: STJO.OB)	-8.9%
General Employment Enterprises (NYSE: JOB)	-6.9%
Total Neutraceutical (OTC: TNUS.OB)	Unch.
TeamStaff (Nasdaq: TSTF)	0.5%
Stratum (OTC: STTH.PK)	Unch.
Purespectrum (OTC: PSRU.OB)	Unch.
Corporate Resource Services (OTC: CRRS.OB)	29%
Prices at approximately 3:00 PM EDT

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.