FOMC minutes: "While the economic outlook was seen as improving, members generally felt that the...


FOMC minutes: "While the economic outlook was seen as improving, members generally felt that the change in the outlook was not sufficient to warrant any adjustments to the asset-purchase program." Some members noted that they needed more time before they would consider any changes. Stocks little changed.
Comments (27)
  • wyostocks
    , contributor
    Comments (9113) | Send Message
     
    This is like I would imagine what watching a slow motion train wreck or violent crash would be like.
    4 Jan 2011, 02:16 PM Reply Like
  • Domenic
    , contributor
    Comments (2) | Send Message
     
    November?
    4 Jan 2011, 02:17 PM Reply Like
  • Harry Tuttle
    , contributor
    Comments (2213) | Send Message
     
    Maybe if they take the S&P to 3,000 unemployment will come down. Party on Ben!
    4 Jan 2011, 02:18 PM Reply Like
  • Hubert Biagi
    , contributor
    Comments (843) | Send Message
     
    Like it or KNOT, the economy is going nowhere without Wall street and the banks. It's why you and I are here, lol.
    4 Jan 2011, 03:20 PM Reply Like
  • wyostocks
    , contributor
    Comments (9113) | Send Message
     
    The question is - Who is leading? Does the economy propel the market to new highs or does the market drag the economy, kicking and screaming, to new highs? So far, the stock runup has not done anything for the econpmy (well unemployment anyway). If unemployment stays a drag, then how much can the economy improve?
    4 Jan 2011, 03:35 PM Reply Like
  • Harry Tuttle
    , contributor
    Comments (2213) | Send Message
     
    Hubert,

     

    That is hardly the point. Bernanke can do whatever he wants, my crusade is against the bs he spews.
    4 Jan 2011, 08:33 PM Reply Like
  • Harry Tuttle
    , contributor
    Comments (2213) | Send Message
     
    Bernanke and most "mainstream" economists believe the Dow Jones IS the US economy.
    4 Jan 2011, 08:34 PM Reply Like
  • wyostocks
    , contributor
    Comments (9113) | Send Message
     
    Harry, we are like lone wolfs in the forest.
    4 Jan 2011, 08:42 PM Reply Like
  • Power Hedge
    , contributor
    Comments (1111) | Send Message
     
    U.S. companies created 1.4 million jobs in 2010. The catch - those jobs weren't in the USA. I don't think that monetary policy offers anything that can bring down the unemployment rate. Companies are more than willing to hire - but not with US regulations.
    4 Jan 2011, 02:20 PM Reply Like
  • inthemoney
    , contributor
    Comments (997) | Send Message
     
    Further, why should they hire in the US when majority of their new growth is outside of the US. And tax climite is better there and labor costs are lower.
    FED has done an excellent job ofn spurring growth in emerging markets, I agree. But why should that growth be financed by US centeral bank, I wonder?
    FED should stop pretending that they can do anything about unemployement and stick with a single mandate of stable monetary policy.
    4 Jan 2011, 02:26 PM Reply Like
  • Machiavelli999
    , contributor
    Comments (831) | Send Message
     
    Yep, that's why Somalia is the fastest growing, best performing country in the world. No regulations. No government. Absolute panacea for its economy.

     

    And countries like China and Russia, where employers can be kicked out, nationalized or imprisoned on the whim of the government are doing horrible.

     

    Oh wait...what's that you say? The opposite is true. China and Russia are soaring despite all their "communist" policies. Perhaps this should make me rethink my narrative and start making decisions based on facts? Nah...
    4 Jan 2011, 02:33 PM Reply Like
  • Machiavelli999
    , contributor
    Comments (831) | Send Message
     
    Comeon, even the ultra-conservative, anti-Obama Heritage Foundation still ranks the United States #8 in economic freedom

     

    www.heritage.org/index...

     

    As much as you might think the United States is riddled with stupid regulations, go and try to open a business in China without the sponsoring of some government official and see what happens.
    4 Jan 2011, 02:36 PM Reply Like
  • Power Hedge
    , contributor
    Comments (1111) | Send Message
     
    I never said that government was always a bad thing. Anarchy (like Somalia) is absolutely a bad policy.

     

    Fact: The USA has the most litigious society on Earth. 1/3 of all trial lawyers in the world are in the USA.

     

    Fact: The USA is the only country in the world that forces employers to provide healthcare to their employees and their employees' children.

     

    Fact: The USA has the highest corporate tax rate on Earth.

     

    Fact: The graduates produced by the education system in the USA lose in just about any study on aptitude to graduates from third-world countries despite the fact that the USA spends more per student than any country in the world.

     

    I do not have any problem whatsoever with regulation and frankly, it isn't the fault of either political party or any one president. Smart regulation can be a very good thing.
    4 Jan 2011, 02:55 PM Reply Like
  • mike mohr
    , contributor
    Comments (452) | Send Message
     
    It is not regulations. It is pure greed.
    4 Jan 2011, 02:55 PM Reply Like
  • inthemoney
    , contributor
    Comments (997) | Send Message
     
    > Oh wait...what's that you say? The opposite is true. China and Russia are soaring despite all their "communist" policies. Perhaps this should make me rethink my narrative and start making decisions based on facts? Nah...

     

    It is a risk and as any risk it has a cost to it. The thing is the cost of US taxes and regulations and labor is still much higher when you compare it to the emerging markets risks + benefit of their cheap labor.
    4 Jan 2011, 02:55 PM Reply Like
  • Furioso
    , contributor
    Comments (25) | Send Message
     
    1/3 of all trial lawyers? So what? A trial lawyer to GDP number would be more useful.

     

    And highest corporate tax rate? Laugh. What is the effective rate? That, again, is more useful.
    4 Jan 2011, 03:02 PM Reply Like
  • Harry Tuttle
    , contributor
    Comments (2213) | Send Message
     
    Agree. However the same regulations were there when unemployment was 5%.

     

    The problem is that US companies can take advantage of lower wages abroad and so, they do not need to hire in the US.

     

    This arbitrage has been going on for a long time as is the reason for much of the "higher productivity" that US economists boast about. We just notice it now because of the dramatic cuts in everything related to real estate and brick-and-mortar retail.

     

    I don't think it will change anytime soon.
    4 Jan 2011, 03:27 PM Reply Like
  • kmi
    , contributor
    Comments (4581) | Send Message
     
    Power Heritage, I'd like to provide additional depth and perhaps some counterpoint to your arguments:

     

    Vis a vis "litigious": This is a result of the US legal system more so than anything else. "Justice" is based on legal precedent in a way unlike virtually anywhere else in the world. It generates litigiousness. This is a result of how the legal system originated here and is unlikely to ever change.

     

    Vis a vis "forced healthcare": The US is virtually the only country in the world with a virtually entirely privatized healthcare system. If I b reak my leg almost anywhere else in the world I will likely receive free care. In the US I will be billed. This is a result of how the healthcare system originated and that a socialized healthcare system never evolved here. Attempts to change it are unlikely to succeed.

     

    Vis a vis "highest corp rate"": As mentioned elsewhere, when Goolge pays 2% effective the rate on the books is less interesting than the reality. Also unlikely to ever change.

     

    Vis a vis "education": When states are able to pass into law teaching "divine origin"as opposed to Darwinism you have a problem. Most countries have a much more centralized education system and they all tend to read from the same books and compete with each other on a far more national level. Like all the other things before mentioned, the education system is heavily decentralized and inefficient. And is unlikely to change.

     

    200 years from now US will be forgotten and historians will talk about its brief rise to prominence after it indebted Europe with the Marshall plan...
    4 Jan 2011, 03:27 PM Reply Like
  • Power Hedge
    , contributor
    Comments (1111) | Send Message
     
    Agreed on all points. However, some of these things do have the unfortunate effect of encouraging companies to relocate due to costs.
    4 Jan 2011, 03:33 PM Reply Like
  • inthemoney
    , contributor
    Comments (997) | Send Message
     
    >And highest corporate tax rate? Laugh. What is the effective rate? That, again, is more useful.

     

    Actually, only coporations with international locations can game the system to achieve effective corporate tax rate of 10% and below. Our tax code almost forces them to outsource. Further, they cannot bring the money back or it will be taxed. So, further, our tax code forces them to invest abroad and hire abroad.
    Companies located in the US with no international subsidiaries ( read small and midsize business) havwe to carry the full brunt of the 35% tax rate. It makes US labor uncompetetive even further.
    The monstrousity called US tax code must be adressed for US to achieve any sort of sustainable recovery.
    4 Jan 2011, 03:36 PM Reply Like
  • wyostocks
    , contributor
    Comments (9113) | Send Message
     
    Agree until the education part.

     

    A) Nothing wrong with teaching "divine origin" after all the country was founded on christian beliefs.

     

    B) Do you really think we would have better educatiion if it were centralized in Washington? Do you really think we'd be better off if some jerk in Washington dictated the sameness for kids in Detroit, Chicago and small towns in the midwest with a couple hundred kids in the whole system. Give me a break.
    Come on, DC schools are the worst in the country and the brianiacs in Washington won't even send their own kids to school there.
    Try looking at the unions, Bro. In small town America where the unions aren't strangling education, there are some pretty damn good schools.

     

    As concerns the Marshall plan, what do you mean "indebted Europe"?
    Europe never paid us back one lousy dime.
    4 Jan 2011, 03:40 PM Reply Like
  • mra1385
    , contributor
    Comments (24) | Send Message
     
    The country was not founded on Christian beliefs, but even so that is irrelevant. We were founded on slavery as well, but you don't see anyone advocating slavery just because "we were founded on it."
    4 Jan 2011, 04:35 PM Reply Like
  • wyostocks
    , contributor
    Comments (9113) | Send Message
     
    Better go back and read the history books.
    4 Jan 2011, 04:43 PM Reply Like
  • User 487974
    , contributor
    Comments (1101) | Send Message
     
    This is it, and you wonder why there is no investor confidence. This report is toilet paper, its like the New York Times, I wouldn't wipe my ass with it. Totally useless. Unless you have to take a dump.
    This is about as stupid as it gets. Lets put some second graders in charge over at the fed, they could do no worse. Embarrassing to be associated with this bunch of fools, our country deserves so much better.
    Jerry
    4 Jan 2011, 03:32 PM Reply Like
  • Fr33f0rm
    , contributor
    Comments (300) | Send Message
     
    Honestly, I don't know why the corporate tax isn't replaced with a national sales tax. Wouldn't it be better to incentivize companies to locate here than to sell here? And, if the national sales tax was instead of the corporate tax, if done correctly, there would be no need for the total price of goods to increase.

     

    But, in order to get the least pushback from the American people, it might have to be accompanied with a law requiring retail to disclose total price and not just pre-tax pricing. (i.e., something priced 99 cents would cost 99 cents.)
    4 Jan 2011, 04:59 PM Reply Like
  • wyostocks
    , contributor
    Comments (9113) | Send Message
     
    Believe it or not, there are states in this USA with zero sales tax.
    4 Jan 2011, 07:55 PM Reply Like
  • Power Hedge
    , contributor
    Comments (1111) | Send Message
     
    And some with no income tax...
    4 Jan 2011, 08:08 PM Reply Like
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