The White House has found cheerleaders among top Democrats in Congress and unions who enthusiastically support the $50 billion in infrastructure spending.

Several Republicans and business groups, however, are not embracing the proposed $200 billion worth of corporate tax breaks, which Obama is expected to talk more about on Wednesday in Cleveland. The groups don’t like how the breaks are paid for: with higher taxes on oil and gas companies.

Even more pressing, two key Senate Democrats, whose votes will be crucial to passage of any jobs bill, say the higher taxes concern them too.

Sen. Mary Landrieu, D-La., said Tuesday she is skeptical of paying for “otherwise beneficial proposals” by raising taxes on the oil and gas industry.

“While these tax increases may be politically popular in some areas of the country, they have a disproportionately negative effect on working families in the Gulf Coast where much of the industry is located,” said Landrieu spokesman Aaron Saunders. “Sen. Landrieu fully supports getting America’s economy back on track but feels that it should not be done at the expense of the Gulf Coast.”

And Sen. George Voinovich, D-Ohio, who supports infrastructure spending, also warned that raising taxes on oil and gas companies would “simply be passed down to consumers through rate increases.” Voinovich is calling for a new gas tax instead.

Even the U.S. Chamber of Commerce, which represents thousands of companies that could potentially cash in on the business tax breaks, won’t support the package.

“We will not support an approach where the government picks winners and losers, providing tax credits and incentives to politically favored industries and groups while sticking others with the bill,” said Bruce Josten, the Chamber’s top lobbyist. “This is ultimately self-defeating and puts politics ahead of sound economic decisions that can create jobs.”

That’s not to say the White House doesn’t have any support. Several top Democrats, including House Majority Leader Steny Hoyer, say they like the package, especially the infrastructure spending part.

Union groups, while not keen on the corporate tax breaks, called the infrastructure spending critical.

“As the recovery slows, we desperately need decisive action for our leaders on both fiscal and monetary policy,” said Richard Trumka, president of the AFL-CIO on Tuesday. “It’s time for leaders to show that they’re economic patriots.”

One thing is for sure: Congress is unlikely to pass any new job-creation bills before the November elections, congressional aides have said.

But the White House may need to come up with a new way to pay for the jobs package if it wants support from moderate Republicans like Sen. Chuck Grassley, R-Iowa. They’ll need at least one Republican vote to break through the all-too-common filibusters in the Senate.

“Business investment incentives sound fine, but will they be paid for in a way that hurts job creation?” Grassley asked. “If the offsets for this new package are other tax increases, then it’s a non-starter.”

Jennifer Liberto, senior writer, On Wednesday September 8, 2010, 8:50 am - CNNMoney.com

There may not be a problem, however, I do want to point out two things:

1.  The month of September has been the worst performing month for the stock market since the 1930’s,

2.  I want to remind people that Intel (INTC) recently missed their earnings and lowered their expectations for the future, and this may be a theme we hear more of over the next few weeks from Corporate America.

One reason the market is up today has to do with China and India showing good growth, however, when did the U.S. markets rely on China and India to lead us out of a recession?  The U.S. used to be the lead country when it comes to growth around the world, and now it appears China’s growth is extremely important for the U.S. to determine an economic turnaround.

As the Global economy continues to evolve, not even the “Great” Warren Buffet knows how to analyze China’s growth and how that impacts the U.S. coming out of a recession.  We will all learn over the next several years how a Global economy truly changes the peaks and valley’s of the U.S. economy and stock market performance.

Stay tuned, September should be a real interesting month for the stock market.  In 2010, the market has increased from positive corporate earnings and declined based on economic data, however, with Intel’s recent news, I think we may be in for a real rough month of September and early October.

If you would like me to review your portfolio, have me give you a second opinion on your investments or hire me to be your Financial Advisor/Portfolio Manager, please email me at JimWigen@WHIFinancial.com.  Continue to check my website for updates on stocks I am buying and selling for my clients.

This is the type of political games any American should be tired of!  We all know it goes on everyday and has for several decades, which is why Americans should demand Government officials to quit playing political games, no matter what political party they support.  At the end of the day, if you live in America, you are an American, not a Republican or a Democrat.

In my last entry on August 25th, I indicated a need for responsible policy come from the administration to move our economy forward, and the Small Business Bill for small businesses may be a step in the right direction, and yet political games keep it from moving forward.  Not much the Government can do for our economy, if both Republican and Democratic politicians don’t do what is best for their representatives, who are Americans, and only worry about their party.

President Obama has indicated he does support to extend “most” of the Bush Tax cuts!  Stay tuned to find out which cuts he does not want to extend.  My guess, he will not support the special dividend tax, which is currently 15%, and he will not support the lower capital gains tax, for people who make over $250,000 per year in income.

If you would like me to review your portfolio, have me give you a second opinion on your investments or hire me to be your Financial Advisor/Portfolio Manager, please email me at JimWigen@WHIFinancial.com.  Continue to check my website for updates on stocks I am buying and selling for my clients.

The stock market has performed very consistently throughout 2010, up around earnings announcements, and down after earnings are over, as the market focuses on weak economic data.  I see several high quality stocks which pay dividend yields around 4%, and those type of stocks will give you quarterly income as we wait for the market and economy to turn around, and of course you should see appreciation in those high quality stocks over the next 3-4 years.  Using the strategy of Selling Covered Call Options is also a great way to earn additional income, as well as provide a little downside protection, as the earned income can offset a decline in the stocks value after you have purchased shares.

Here is the problem with this market!!!!!!  There is nothing on the horizon to turn this market around, government help seems to be limited!   Home owners can not only not get money out of their house through a cash-out refinance, they can’t even refinance their current loans, taking advantage of the historical low rates on a 30 year mortgage.

How is it possible someone who is paying their mortgage on-time, can not refinance their house?  Why in the world do banks need to worry about your LTV on your home, when you have been able to pay your mortgage payment on-time, simply want to refinance to lock in a low rate for 30 years, and reduce your debt obligations, which would free up cash to purchase goods?????

Last week during a economic housing forum, it was discussed to allow people who are current on the mortgage, the ability to refinance and have the government back those loans.  This seems like a good idea to me, and it would not add to the National Debt, which is what Republicans and Democrats are both agreeing needs to be in focus!!!!

My advice is to talk with your financial advisor about your game plan for taking advantage of a declining stock market, if they tell you to hang in there you are a long term investor and they don’t give you a educated response on what to do, fire them and call me, I would be happy to work with you.

There is risk in losing money when buying stocks, especially if you are looking for positive returns each time you receive your monthly statement.  Remember, in March 2009, the DJIA was at 6,400, so keep that in mind when you are wondering why the DJIA isn’t going up much past 10,000.

In December, we will be three years into this economic decline, and if you compare that to the decline starting March 2000, it was not until March 2003, when the stock market and economy started turning around.  Back then, we had the start of the War to drive us forward, now we have government infighting, corporations who are hoarding cash and to afraid to spend it.  Corporations have been given no incentives to spend that cash or hire employees, only threats coming from the current administration regarding new corporate regulations stemming across several sectors.

Bottom line, my advice to the government, give incentives to corporations instead of more stimulus money.  Incentives cost you down the road, stimulus costs you today, and that is what both political sides agree, can and should not happen.  Until incentives come from the White House, enjoy the bumpy ride with the stock market, and the long recovery we are in for with our economy!

Buy dividend paying stocks and sell covered calls, your best chance to get paid while all of this mess plays out.

If you would like me to review your portfolio, have me give you a second opinion on your investments or hire me to be your Financial Advisor/Portfolio Manager, please email me at JimWigen@WHIFinancial.com.  Continue to check my website for updates on stocks I am buying and selling for my clients.

Posted on July 27th .

Private employers added a net total of only 71,000 jobs in July, far below the roughly 200,000 needed each month to reduce the unemployment rate.

The modest gains were even weaker when considering a loss of government jobs at the local, state and federal levels in July that weren’t temporary census positions. Factoring those in, the net gains were only 12,000 jobs, according to the Labor Department’s July report Friday.

Investors reacted by selling stocks and shifting into more conservative Treasury bonds. The yield on the 10-year Treasury note, which helps set rates on mortgages and other consumer loans, fell to 2.85 percent from 2.91 percent late Thursday. Major stock indexes all fell.

The department also sharply revised down its jobs figures for June, saying businesses hired fewer workers than previously estimated. June’s private-sector job gains were lowered to 31,000 from 83,000. May’s were raised slightly to show 51,000 net new jobs, from 33,000.

“There is still a labor market recovery, but it’s a very, very weak one,” said Nigel Gault, chief U.S. economist at IHS Global Insight.

Overall, the economy lost a net total of 131,000 jobs last month, mostly because 143,000 temporary census jobs ended.

The slow pace of hiring will weigh on the recovery, he said, with economic growth in the current quarter likely to come in even lower than the April-to-June quarter’s already weak 2.4 percent.

The “underemployment” rate was the same as in June, at 16.5 percent. That includes those working part time who would prefer full-time work and unemployed workers who’ve given up on their job hunts.

All told, there were 14.6 million people looking for work in July. That’s roughly double the figure in December 2007, when the recession began.

Even if hiring picks up, it will take years to regain all the jobs lost during the recession. The economy lost 8.4 million jobs in 2008 and 2009. This year, private employers have added only 559,000 new hires.

Friday’s report is being closely watched by the Federal Reserve as it considers ways to energize the recovery. The report could persuade the Fed to take new steps to boost the economy and keep interest rates at record lows when it meets next week.

Without more jobs, consumers won’t see the gains in income needed to encourage them to spend more and support economic activity. Even those with jobs may not feel confident enough to ramp up their spending.

That’s important because many of the trends driving economic growth earlier in the recovery are fading. Companies boosted production in the winter and spring to rebuild inventories that were depleted in the recession. But that boost won’t last much longer. And the impact of the federal government’s stimulus package is also declining.

The economy grew at 5 percent in the fourth quarter last year and 3.7 percent in the first three months of 2010. But that slowed to 2.4 percent in the April-June period. That’s not fast enough to generate many jobs and reduce the unemployment rate.

Many companies appear to be getting more out of their current employees rather than adding new staff. The average work week increased by one-tenth of an hour to 34.2 hours, the department said. That’s up from about 33 hours in the depths of the recession.

Average hourly pay also rose 4 cents to $22.59, up 1.8 percent from a year earlier. That, along with the increase in hours worked, could provide some boost to spending.

The number of temporary jobs fell by 5,600, the first drop after nine months of gains.

Employers usually hire temp workers if they need more output but don’t want to hire permanent employees. But “firms aren’t even adding temporary workers right now,” Gault said.

Manufacturers added 36,000 jobs in July, slightly above its monthly average this year. Those gains were aided by General Motor’s decision to keep its plants running last month. Usually it closes them and temporarily lays off employees to retool for the new model year.

Construction firms cut jobs for the third straight month, losing 11,000, while financial firms shed 17,000 workers.

But retailers added 6,700 jobs. And the leisure and hospitality industry hired 6,000 additional staffers.

Corporate net income rose sharply in the second quarter, but businesses aren’t yet using the proceeds to ramp up hiring. Companies in the S&P 500 index reported a 46 percent increase in net income for the April-to-June period, compared to a year earlier.

But many employers are uncertain about the direction of the economy. Some are concerned sales will slow once government stimulus and other temporary factors fade. Others fear what will happen if federal income taxes are allowed to rise next year as tax cuts enacted by President George W. Bush expire.

“People have a long worry list they’re looking at,” said Ethan Harris, chief economist at Bank of America Merrill Lynch.

Some companies are adding permanent workers. The hospital chain HCA Inc. has 8,300 open positions, company spokesman Ed Fishbough said. That includes nurses, physicians and information technology professionals needed to build HCA’s ability to handle electronic medical records. HCA employs about 190,000 people.

But layoffs are also continuing. FBR Capital Markets, an investment bank based in Arlington, Va., cut its work force by about 15 percent in early July to about 500 employees, saying it needed to reduce costs.

AP Business Writers Stephen Bernard and Tali Arbel in New York contributed to this report.

WASHINGTON (AP) — Mortgage rates dropped to the lowest level on record for the sixth time in seven weeks, offering the most attractive opportunity in decades for those who qualify to refinance or purchase a home.

Government-controlled mortgage buyer Freddie Mac said Thursday that the average rate for 30-year fixed loans this week was 4.49 percent, down from 4.54 percent last week. That’s the lowest since Freddie Mac began tracking rates in 1971.

The average rate on the 15-year fixed loan dropped to 3.95 percent, down from 4 percent last week and the lowest on record.

Rates have fallen since spring as investors seek the safety of U.S. Treasury bonds. That has lowered the yield on Treasurys. Mortgage rates tend to track those yields.

The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

Low rates have sparked some activity in the weak housing market, but not a massive boom in refinancing.

Applications to refinance loans increased 1.3 percent and those to purchase homes increased 1.5 percent, according to the Mortgage Bankers Association.

Nevertheless, high unemployment, slow job growth and tight credit have made it difficult for many to purchase homes. The housing industry received a boost this spring when the government offered homebuying tax credits, but housing activity has plummeted since they expired in April.

The number of buyers who signed contracts to purchase homes plunged in June to the lowest level on records dating back to 2001, according to the National Association of Realtors.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on five-year adjustable-rate mortgages averaged 3.63 percent, down from 3.76 percent a week earlier. Rates on one-year adjustable-rate mortgages fell to an average of 3.55 percent from 3.64 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 a point for all loans.

The Consumer Confidence Index reported a June number of 54.3 and a July number of 50.4.  This index is based on household surveys and reported monthly.  In a good economy, the index number should be around 85.

We need to see the unemployment rate start dropping before we will see consumers out spending on non-staple products.

The last two quarters, I have reported 60%-70% of companies reporting their earnings have beaten analysts expectations, and upon those earnings the markets have gone up.  As soon as people start thinking the market is back on track and poised towards a further recovery, we see the market decline sharply.  Whether it be European banks leading the downward spiral, weak U.S. economic data or concerning U.S. unemployment levels, I believe the market will drop once again in the coming weeks.

I am not suggesting you liquidate your portfolio, however, you may want to lock in some profitable stocks you have in your portfolio, and sell into this market increase.  In this type of volatile market, having cash is never a bad strategy, even though you are not earning much interest while sitting in money market funds, it’s still better than losing money in stocks when the market declines.  Until Mrs. & Mrs. America are back to work and have money to spend, I would suggest selling stocks into market rallies and buying stocks when the market dips.

Using the strategy of Selling Covered Call options and Selling Put options are a way you can earn additional income during volatile market conditions.  Email me to learn more about how the option strategies may work in your portfolio.

If you would like me to review your portfolio, have me give you a second opinion on your investments or hire me to be your Financial Advisor/Portfolio Manager, please email me at JimWigen@GetWealthyStayWealthy.com.  Continue to check my website for updates on stocks I am buying and selling for my clients.

ZURICH/FRANKFURT (Reuters) - UBS (VTX:UBSN.VX - News) flagged a return to client inflows by year-end as strong equities and currency trading gains helped it outdo Deutsche Bank (XETRA:DBKGN.DE - News) and other rivals, which were hit hard by the European sovereign debt crisis.

UBS’s (NYSE:UBS - News) strong second quarter investment banking results stood out against a weak performance at U.S. banking giants Goldman Sachs (NYSE:GS - News) and Citigroup Inc (NYSE:C - News), driving shares up 10 percent as investors believed Chief Executive Oswald Gruebel’s tough restructuring strategy was producing results.

UBS, which was hit by the credit crisis and a tax probe, was also able to slow a bleeding of client money to its lowest level since it started to lose assets in early 2008, and Gruebel said he was confident he could stop outflows by year end.

“We have fared well through the euro crisis thanks to our good risk management approach,” said Gruebel, a former Credit Suisse CEO who was pulled out of retirement in 2009 to lead UBS.

“Our results look reasonably good compared to our peers. I am confident we can stop the client outflows this year”

UBS turned in a net profit of 2 billion Swiss francs ($1.90 billion), its third quarterly profit in a row after a string of big losses in 2008 and 2009. It was well above forecasts for 1.34 billion francs.

“We have seen a turnaround in investment banking that was not expected so early. These are good numbers in terms of outflows, which have stabilized,” said Francois Savary, chief investment officer for private banking unit of Reyl. “Gruebel was hired to produce a turnaround at UBS and he is delivering.”

Swiss competitor Credit Suisse (VTX:CSGN.VX - News; NYSE:CS - News) had also beaten forecasts with a second-quarter profit of 1.6 billion, but tax and accounting gains had partly offset a significant quarterly decline in investment banking.

Deutsche Bank, which fared better than UBS in the credit crisis, turned in a net profit of 1.2 billion euros, only slightly above a poll consensus of 1.04 billion euros, as its fixed-income division suffered more than UBS in the quarter.

Shares in Deutsche Bank, Germany’s largest bank and Europe’s No.13 by market value, were up 3.8 percent at 1000 GMT, underperforming a 4 percent rise in the European Stoxx 600 banking index (^SX7P - News).

“Deutsche Bank’s Q2 2010 results are disappointing versus consensus as well as UBS,” analyst Andrew Lim said, pointing to a 44 percent drop in revenues from its fixed income currencies and commodities division.

IS GRUEBEL’S MAGIC WORKING?

UBS said clients drained a total of about 5 billion francs at the Swiss bank’s wealth and asset management units, sharply down from outflows of 18 billion francs in the first quarter.

On a net basis, UBS was able to win 2.6 billion francs of client money at its global asset management, the first time the division saw net inflows since the start of 2008.

But these were offset by outflows of 5.5 billion Swiss franc at UBS’ Wealth Management & Swiss Bank division and outflows of 2.6 billion in Wealth Management Americas.

Wealth Management Americas was still unprofitable due to a restructuring charge, but Chief Financial Officer John Cryan said client inflows at the division should materialize soon.

“Overall, UBS posted better-than-expected 2Q10 results with better revenue streams especially from investment banking and wealth management as well as a slightly lower cost base and a lower amount of one-off items,” said Teresa Nielsen, an analyst at Vontobel. “We will revise our estimates upward and put our price target under review,” said Nielsen.

UBS was able to slightly improve its investment banking pre-tax profit to 1.3 billion from 1.2 billion in the first quarter as it boosted equities trading by 9 percent and doubled its contribution from forex trading.

In contrast, Credit Suisse halved its investment banking pre-tax gains to just below 800 million francs from the first quarter.

Deutsche’s corporate banking and securities division, run by 47-year old Anshu Jain, posted 779 million euros in pretax profit. This together with 1 478 million euros contribution from transaction banking accounted for the lion’s share of 1.52 billion euros ($1.96 billion) in group pretax earnings.

Sharply lower loan loss provisions and a low tax rate also helped Deutsche, which stuck to its 2011 target of 10 billion euros from its core businesses but added a note of caution.

“While some of the environmental variables are in line with or ahead of our assumptions, others have not yet reached the expected levels, particularly with respect to the normalization of interest rates,” the bank said in its quarterly report.

(Writing by Lisa Jucca and Edward Taylor, Additional reporting by Katie Reid and Martin de Sa’Pinto in Zurich; Editing by Louise Heavens)