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Dana Blankenhorn

 
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  • Why We Need A Little Amazon Right This Very Minute [View article]
    We shall see. I'm long, but the shorts have had a field day over the last year, as I'm sure one or two will be telling you in 3...2...1...It's down to 290 now.
    Jan 20, 2015. 01:06 PM | 2 Likes Like |Link to Comment
  • Dana Blankenhorn: Why Your Money Should Be On Tech In 2015 [View article]
    Back in the 1960s, yes, you're absolutely right. Polaroid and Kodak were both among the "Nifty 50" of that era, if memory serves.

    But technology changes. You have to keep your eyes fixed on the future. You have to make the leap, even if that means cannibalizing your existing business to do so. Polaroid and Kodak didn't. Makes them object lessons.
    Jan 20, 2015. 12:32 PM | Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    Anything we spend on is better than spending nothing. And there is nothing we can do to improve our foreign policy prospects that's better than renewable energy. But I think tax policy would be a better tool in that regard, because so much of what we need in that case is so close to being profitable without any subsidy whatsoever. Balance out current tax benefits to fossil fuels with taxes and I personally think we're good in that area.

    One thing we never talk about, but that has wide bipartisan support, is research driven by military necessity. That's where this here Internet came from. That's where Apollo came from. It's what drove the creation of the first mainframe computers.
    Jan 20, 2015. 12:31 PM | 2 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    I think you're on the right track here. This is very simple. If no one is spending, and money is free, then it makes sense to borrow some money and spend it. I always prefer to spend money wisely, whether it's my own or the government's. That's why I prefer that we rebuild our infrastructure and put even more money into advanced technologies. Whether that's done through a military budget or civilian budget is irrelevant -- the benefits fall out the same way.
    Jan 20, 2015. 11:05 AM | 5 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    There is no great windfall there, relative to the size of the problem. The idea that tax cuts will create economic growth has been disproven so many times it's a wonder it keeps coming up. Companies will move money to the place with the lowest tax rate, always, but the benefits of that for governments are very limited -- that's why the rates are the lowest in very small countries, those with the fewest people.

    I've written before we need to invade the Caymans and get rid of tax havens entirely. I continue to believe that.
    Jan 20, 2015. 09:37 AM | 2 Likes Like |Link to Comment
  • Why We Need A Little Amazon Right This Very Minute [View article]
    I think the Fire Phone was written off in the third quarter. There are development costs for the next generation that are going to be in the fourth quarter numbers. Bezos is not giving up.
    Jan 20, 2015. 08:38 AM | 1 Like Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    I like the idea. At present tax rates I don't think you even need to give the tax benefit to sell the bonds.

    An infrastructure bank could ask states to bring it projects that pay off in 10 years, then issue federal bonds to pay for them at a current cost of under 2%. Put a conservative banker in charge and the market would gobble them up.
    Jan 20, 2015. 08:37 AM | 4 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    I'm not recommending QE. I'm recommending that someone spend money. Private money, public money. How do we get the economy moving and money into productive uses?

    Cutting taxes has not worked to that end. The problem is that if you hand money to rich people they hoard it. Other people spend it. Right now we need spending.
    Jan 20, 2015. 07:45 AM | 4 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    Cutting taxes has been the "solution" to America's problems for 35 years now. It hasn't worked. And are you claiming the last 6 years haven't rewarded innovation? Really, with this stock market?
    Jan 20, 2015. 07:44 AM | 3 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    It's based on the market. U.S. bonds are at super-low interest rates, and have been for some time. The market is saying you can borrow money for practically nothing, yet there's not enough demand for what is being produced.
    Jan 20, 2015. 07:43 AM | 2 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    China is not a huge factor in the U.S. bond market. Not nearly as big a factor as you seem to believe.
    Jan 20, 2015. 07:41 AM | Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    Look at any chart showing the percentage of wealth held by the wealthy going back 100 years. They were a big thing last year. The last time things were like this was 1929. The relative wealth of the wealthy took a hit from the Great Depression, but an even greater hit from WWII, leading to the period sometimes called the "great leveling," the years after WWII, when we troughed in terms of relative wealth.

    But please don't take my word for it. Do some research.
    Jan 19, 2015. 07:46 PM | 7 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    What got us out of the last bout of deflation? Spending. And the one before that? Spending. And the one before that? Spending.

    Austerity never solved anything. Growth is the cure, as the 1990s demonstrated.
    Jan 19, 2015. 07:45 PM | 6 Likes Like |Link to Comment
  • What To Hold In The Face Of Deflation [View article]
    Debt is balanced against assets and collateral, with an understanding of risk. Debt in relation to assets and income has been falling for years. If it were not, interest rates would not be negligible.
    Jan 19, 2015. 07:44 PM | 3 Likes Like |Link to Comment
  • Canadian Oil Sands: Sorry, But We Told You To Stay Away [View article]
    So now it's sanctimony? I prefer progress, and life, and growth, to the cosmic suicide of the science denialists -- both the liberals who reject vaccine science and the conservatives who reject climate science.

    Want to call that emotional? Sanctimonious? That's fine.
    Jan 19, 2015. 06:34 PM | Likes Like |Link to Comment
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