The images continue to pour in from Syrian migrants attempts to gain entry into western nations, primarily Germany; a scene that has only intensified since Germany said it would take in up to 800,000 refugees.  Perhaps it was a noble gesture or perhaps someone thinks that the flood of people will consist of potential doctors, business people, and regular folks next door.  The dirty little secret is that Europe is an old nation with low birthrates and they need immigrants.

The bad news is that the open arms policies of Europe have backfired miserably.

It is what’s given rise to right-wing parties, looking to protect cultures and treasuries.  Most of these entities have been labeled racist, but the fact of the matter is that yellow flags are going off all over the continent for those who want to preserve some semblance of their own heritage.  Even the melting pot of America has its own traditions that many of us hope are around a thousand years from now.

As we watch the situation in Europe with empathy, it is also a cautionary tale for America.  We’re on that European path blazing to a cliff of no return.  Greece has gotten there, and it has been (temporarily) solved through a bunch of bailouts that can only kick the can down the road.  Of course, immigration is already front and center in the minds of many; it’s not just the illegal crisis of securing the border, but it’s also dealing with 11 to 14 million folks already here.

They aren’t leaving on their own, even with things like E-Verify.  It would help, but if anyone thinks that folks are going to wait in a line to take a bus home, they don’t understand the hellholes many of these folks have come from in the first place.  More important is the fact that it’s better to be jobless and poor, even as an illegal immigrant in America.

We are still the land of milk and honey.

Sure, the streets aren’t paved with gold, but anyone with a little hustle can make ends meet, and maybe even a lot more.  Of course, those almost 300 sanctuary cities are paved with gold for those who have come into the country before being invited or those who are authorized to be here.  It would be something if these refugees stood their ground in their home countries and forced change.

The American template is well-known, even if dismissed by progressives.  Create an environment of upward mobility, rule of law, and religious freedoms.  Coupled with a focus on education and a financial system that allows money to flow and take risks.

The Red Carpet

Are western nations too generous?  Syrians and other refugees from war-torn nations can make big money in the west from the moment they enter.  For decades, I’ve listened to cab drivers from different countries tell me about their lofty positions back in their home countries and how they’re getting the short-end of the stick in this country.

The fact they’re driving a cab is the antithesis of such statements, but it’s a persistent line of belief.  It leads to friction; and seeds the kind of animosity that would seem one hundred percent unreasonable.  How could anyone hate his or her host country?  Furthermore, how could their children hate their host country?

Maybe western nations are too generous in a variety of ways.

Asylum Seekers	Percent Accepted	Wait for Work Permit (Months)	Benefits Single Person
Germany	42%	3	€374
Sweden	77%	None	€226
UK	39%	9	€217
Hungary	9%	9	€86

This brings us to America, which is a beacon of hope.  There’s a lot of stuff here if you can cross the border with or without papers.  Of course, having a child here is the ultimate jackpot for illegal immigrants.  This isn’t a mean-spirited political issue; it’s a case of mathematics and the indelible right for any sovereign country to control its borders.

Asylum Seekers	Percent Accepted	Wait for Work Permit (Months)	Benefits Single Person
United States	30%	6	N/A

Moreover, could America force out 11-14 million illegal immigrants if they don’t want to leave?  I have no idea, but I think it would be tough, ugly, and would shut down quickly.  This is why we must have a greater sense of urgency to build a giant wall and to prevent native-born Americans from losing work.  

Today’s Session

The market looks to open with a bias to the down side, and will likely tread water until the Fed policy announcement at 2 pm.  Fed Chair Janet Yellen will hold a press conference following the meeting at 2:30 pm.  Expect volatility as the market reacts to the rate announcement and parses the economic statement and hangs on every word.

Oil is also down this morning giving up some of the stellar 6% gains from yesterday.

This morning we got two pieces of economic data with reports on housing and initial jobless claims.

• August housing starts were down 3% vs down 4.1% in July. Housing permits were up 3.5% vs down 15.5% in July.  August Housing Starts were 1,126K vs 1158K consensus and the prior month was revised to 1161K from 1206K.
• Initial Jobless claims down 11,000 to 264,000 versus 275,000 and the prior month was unchanged at 275,000.  Continuing claims came in at 2,237,000 vs 2,225,500 and the prior month was revised to 2,263,000 from 2,226,000.

In the latest deal making, Netherlands-based telecom Altice announced plans to buy Cablevision (CVC) in a huge all cash deal valued at $17.7 billion. Altice will pay $34.90 a share which is a 22% premium to yesterday's close. Shares of CVC are up about 15% in early trading. The acquisition follows the May deal for Suddenlink for $9.1 billion. Earlier this year, Altice attempted to buy Time Warner Cable, but lost to Charter Communications.  Altice is rapidly becoming a major player in the evolving US cable market.  The markets continue to be ripe for consolidation.

 

Comments

Look at the wide-pan pics of the Syrian flood. Most are 18-30 year old men, old enough to fight for their homeland, especially with the $500MM of US funding that has "trained" 5 men. The press focuses on the women and children, who are the vast minority of the "refugees". How many of these same men are terrorists? Who knows?! Europe has reaped what it has sown. kev on 9/17/2015 9:46:00 AM

Everyone who believes that arming and backing Syrian rebels really needs to watch Glenn Becks video......it truly is an eye opener. Intervention from outsiders has caused the murder of Ghadafy and Saddam Hussein....True, they were thugs...but they kept a handle on their domain. Now look at the situation in Libya, Egypt, Iraq, and Syria....and compare it to 15 years ago. Is this a positive direction? Most certainly not. Stan on 9/17/2015 10:29:27 AM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.