Eric,

The degree to which to Europe has created then mishandled their financial problems is EPIC. It makes the Fed look good in comparison. It shows the European Union to be a Union in the imagination of Europe.

Of course the Greeks would vote down anything other than the total repeal of all taxes. The Greek referendum was simply too stupid to be stupid.

Regards,
Jim

Futures drop on Greek referendum, Asian growth
CIGA Eric

Social unrest throughout Europe (Greece, Spain, Italy, etc) will be the wild card not easily placated by financial bailouts.

Headline: Futures drop on Greek referendum, Asian growth

NEW YORK (Reuters) – Stock index futures tumbled on Tuesday as the deal to rescue Greece and prevent a wider sovereign debt crisis faced a new hurdle and as Asian economic data reignited fears of a slowdown in global growth.

Greek Premier George Papandreou said he will put Greece’s bailout deal through a referendum, throwing the long-awaited deal into disarray and sending European stocks down 3.5 percent. The region’s bank shares fell 6 percent.

U.S. bank shares were expected to follow European lenders lower. The Financial Select Sector SPDR fell 2.3 percent in light premarket trading.

"The market did not see this Greek referendum coming, which is potentially a killer and could knock the wheels off the bus of the whole (European rescue) plan," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

Source: finance.yahoo.com ^[1]

More… ^[2]

Average U.S. Sales Tax Rate Hits Record High
CIGA Eric

The real cutting when the realization that many States (and Federal) cannot tax their way to a balanced budget. It won’t stop them from trying, though, as Americans hooked on big government ^[3] increases daily.

Headline: Average U.S. Sales Tax Rate Hits Record High

President Obama’s proposed budget calls for tax increases mainly on the well-to-do and rich. But many states are already raising the one big tax that falls disproportionately upon the poor.

In 2010 the average combined sales tax bite rose by a full percentage point, reaching 9.64% at the year end, according to an annual report from Vertex Inc., which calculates sales taxes for Internet sellers. That’s the highest rate since the Berwyn, Pa., firm started calculating the number in 1982 and the second year in a row that it has set a record.

The year-to-year change is noteworthy and real. But Vertex’s stated average is a bit artificial and likely higher than what Americans pay on average. Vertex calculated separately the average sales tax levied by states, by counties, by municipalities and by special districts such as business improvement zones and Indian tribes, and added them together. Five states (Alaska, Delaware, Montana, New Hampshire and Oregon) have no sales tax. Nor do a huge number of counties and cities. Most people aren’t on a tribal reservation, either.

Source: forbes.com ^[4]

More… ^[5]

Instant view: Manufacturing sector growth eases in Oct: ISM
CIGA Eric

US Economic activity is a lot weaker than generally depicted in the headlines. The approaching Presidential election, and increasing calls for austerity with no further bailouts and stimulus as a viable economic solution could become a cocktail for economic policy inaction throughout most of 2012.

ISM Prices Paid Index (PP) to National Purchasing Manager’s Index (PMI) Ratio:
^[6]

Headline: Instant view: Manufacturing sector growth eases in Oct: ISM

(Reuters) – The pace of growth in the U.S. manufacturing sector unexpectedly slowed in October, though it managed to stay in expansion territory, according to an industry report released on Tuesday.

U.S. construction spending growth slows on government drag

Growth in U.S. construction spending slowed in September as governments cut back on building and maintaining schools and public transportation, a government report showed on Tuesday.

Source: reuters.com ^[7]

More… ^[8]