Communist unions in Greece violently oppose having to live within their means and they lead the attacks on the Greek police.

Communist unions in Greece violently oppose having to live within their means and they lead the attacks on the Greek police. They wear black shirts and carry red flags. Greece will likely have to pull out of the EU.

The U.S. government wouldn’t be able to fund about 50 percent of its obligations and would have to furlough about 800,000 federal workers if Congress fails to approve an increase in the $14.3 trillion debt ceiling, a coalition of former budget officials says. The percent of business survey respondents expecting an increase in job availability fell to the lowest in 11 months.

American doctors now reject an average of 12% of patients with private insurance due to low payments for services as well as administrative difficulties. Rejected patients go on to find another doctor or aide. Ultimately under Obamacare it is expected that 50% of doctors will retire and physician’s assistants, nurses, and volunteers (as in banana republics like Cuba) will take over. Then Obama can join Fidel Castro to claim they have the best medical care in the world.

World Markets:
The red flags of communists in Greece flew in the parliament square. Tear gas is being used to fight rioters in Greece today as a two-day general strike was called. Government workers who do nothing will lose their jobs and pensions. Greece already has a 16% “official unemployment rate.” Greece will face a cash shortfall in the middle of July unless it receives a EUR12 billion rescue loan payment from the euro-zone governments and the International Monetary Fund, the fifth slice of EUR110 billion in rescue loans agreed upon last year. Greece cannot even fund their expenditures even if they roll over the loans coming due. Greek labor unions started a 48-hour strike to pressure Greek lawmakers to vote against the legislation, which would slash social welfare spending and impose a special crisis levy on all taxpayers. "The only way to avoid immediate default is for parliament to endorse the revised economic program," Rehn said in a statement Tuesday. "To those who speculate about other options, let me say this clearly: there is no Plan B to avoid default." Joaquin Almunia, the EU's antitrust chief and its former economics commissioner, Tuesday warned, "The fiscal crisis in Greece is threatening to destabilize other euro-area economies and even the proper functioning of the European monetary union," Greece has EUR 4.4 billion in short-term treasury bills in July, another EUR 2.48 billion in August and a EUR 5.9 billion bond repayment on August 20. The government should be able to roll over the Treasury bills, but it must also fund its budget during that time. The deficit is expected to be EUR 17.1 billion for all of 2011.

Canadians’ confidence in the country’s economic prospects fell to its lowest in two years amid concern that the global recovery is stalling. The proportion of Canadians who predict a weaker economy in the next six months rose to 23.6 percent from 19.1 percent in March.


US Economic Highlights
Past Week
This time Obama had them drop last months first two statistics to make this month look better. We will use the original numbers.
Monday
Consumer spending stagnated in May as employment prospects dimmed and inflation rose to 3.6%/ year.
Personal Income May 0.2%, down from 0.4% reported last month.
Personal Spending May –0.1%, down from 0.4% last month
PCE Prices - Core inflation May 0.3% or 3.6%/yr, above the FED 2.5%/yr target level
Yesterday
Case-Shiller 20-city Index Apr showed new housing prices down -3.96% in April to an 11 month low. Prices decreased in the year ended April by the most in 17 months, showing genius Obama’s housing zero down payment policy for people who cannot afford a house remains a major obstacle for the U.S. recovery. Also the S&P/Case-Shiller index of property values in 20 cities fell 4 percent from April 2010, the biggest drop since November 2009, the group said today in New York. A backlog of foreclosures and falling sales raise the risk that prices will decline further, discouraging builders from taking on new projects. The drop in property values and a jobless rate hovering around 9 percent are holding back consumer sentiment and spending, which accounts for 70 percent of the economy.

Consumer confidence unexpectedly fell in June to a seven- month low, indicating that slowing employment gains are weighing on Americans’ outlooks, another report today showed. The Conference Board’s index decreased to 58.5 from a revised 61.7 reading in May that was worse than previously estimated.
http://www.martincapital.com/chart-pgs/Pg_conco.htm


This week’s coming reports
Jun 29 7:00 AM MBA Mortgage Index 06/25
Jun 29 10:00 AM Pending Home Sales May
Jun 29 10:30 AM Crude Inventories 06/25
Jun 30 8:30 AM Initial Claims 06/25
Jun 30 8:30 AM Continuing Claims 06/25
Jun 30 9:45 AM Chicago PMI Jun
Jul 1 9:55 AM Michigan Sentiment - Final Jun
Jul 1 10:00 AM ISM Index Jun
Jul 1 10:00 AM Construction Spending May
Jul 1 3:00 PM Auto Sales Jun
Jul 1 3:00 PM Truck Sales

Market Outlook June 29, 2011
Consensus forecast for USA 1st quarter GDP growth was 3.5%. It actually was only 1.9% growth. Consensus forecast for the 2nd quarter GDP growth is now also 3.5%.

U.S. stocks rose Tuesday again on low volume as sellers watch MSNBC followers leap into stocks based on Greek communist unions that control the Greek labor unions. Many American workers have now stopped putting 401 Plan cash into the hedge funds and are getting out again. A small decline now would break the previous low and likely trigger a sell-off. Yet MSNBC/Pravda’s Jim Cramer is so optimistic on stocks that he is literally incoherent.

The stock market again on the new bear market trend line! On a cash flow (not price basis) it is a lot worse. Looks like the market will now follow the upper limit down in a continuing bear market. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=6m&l=on&z=m&q=l&p=%2Ce50%2Ce100&a=m26-12-9&c=


The bear market bounce continued. The VIX is a measure of concern. Low VIX correlates with overconfidence and immanent decline and now fear must rise substantially before the current market sell-off can be considered over. Look how high the VIX has to go now before the bottom is hit in the past! The market typically bottoms with the VIX at 28 or higher. VIX now is only at 20 with 15 being complete investor complacency. It is up only 5 points and has 8 more points to go up and only half way to indicating a market bottom.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=m&q=l&c=

Obama and MSNBC/Pravda have been lying about recovery since he got elected. This was Cramer/Lenin/Pravda’s main chart for claiming growth until it showed world stagnation instead. Recovery is one of Obama’s big lies just like his campaign lie that we were in a depression one year before the leftists destroyed American real estate and banks by requiring US banks give mortgages to people of Obama’s ethnic heritage who had no visible source of income to make the mortgage payments. Click on the 5yr chart and see full effect of the slowdown in world dry shipments. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian Stocks slid last night. China down –1.1%, Hong Kong down <-0.1%, India up 1.1%, and Japan up 1.5%.

European markets are up this morning in a range of about –0.0% to 1.9% half way through their day.

American markets are up 0.3% this morning at 7 AM