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  • Summers: U.S. risks becoming a Downton Abbey economy [View news story]
    Real wealth is highly diversified and nation-state independent.

    Seriously, fear-mongering in the name of the wealthy is pretty pathetic. When money can be made more easily, securely, or effectively anywhere else, the wealthy will move their assets and themselves there. It is a meaningless argument.

    The middle class, on the other hand, is the fundamental backbone of any nation state, both its consumption class as well as its productive class. It contributes a higher percentage of its non-disposable income towards taxes and the general welfare than either the 'wealthy' or the 'entitled' and tends to locate the entirety of its assets inside the nation-state of its residence. Spreading FUD is characteristic of a weak arguement.

    Woe be to us, the wealthy, for we bear the burden of supporting the nation, with our wealth. Woe be to us, with all our cars, our six-packs of rolexes and our underwater airplanes.

    Yeah, right.
    Feb 17 03:33 PM | Likes Like |Link to Comment
  • Summers: U.S. risks becoming a Downton Abbey economy [View news story]
    The key is that the middle class should pay less.

    Government provided 'benefits' should not provide a 'middle class' equivalent lifestyle: they should promote upward mobility into self-sufficiency and into the middle class.

    And at the same time, exorbitantly large incomes that don't feed back into the economy should be taxed far more.

    Right now the entire economy is supported on the back of the middle class, both the entitlements for the poor as well as the tax shelters for the rich. The tax code effectively penalizes you for being middle class.
    Feb 17 12:26 PM | Likes Like |Link to Comment
  • Summers: U.S. risks becoming a Downton Abbey economy [View news story]
    Forget loopholes. Just take 5 minutes to hit the IRS website. There's a section where you can find all the ways you can tax shelter money.

    Take a two income household, and start adding it all up, IRA, 401k, 529s, etc... The number gets pretty big, so that a household taking advantage of and applying all the various legally permissible - non-loophole tax shelters could be making several hundred thousand dollars and paying the same dollar amount in taxes as a household making the median household income for the country and not sheltering any of it (because they damn well can't afford to).
    Feb 17 12:14 PM | Likes Like |Link to Comment
  • Bitcoin plunges as Mt. Gox halts withdrawals [View news story]
    Not most not even many. Bitcoin volume is infinitesimal.
    Feb 7 04:55 PM | 1 Like Like |Link to Comment
  • Cannabis Investment: The Grass Ain't Green, It's Brown [View article]
    Amongst Urban Legends, the myth of the high class, intelligent, wealthy, well paid 'pothead' ranks pretty high.
    Feb 6 11:38 PM | Likes Like |Link to Comment
  • Obamacare to cause major reduction in hours worked - CBO [View news story]
    The implication being that the subsidy value, or cost of insurance, is meaningfully higher than their earning potential.

    One wonders how this forecast would potentially be impacted if those on "lower salaries" earned more (minimum wage increase anyone?) and/or the cost of health insurance and healthcare were reduced (competitive marketplace anyone?).
    Feb 5 11:41 AM | Likes Like |Link to Comment
  • Intel And The 50 Best Bond Trades [View article]
    Thanks, good read.
    Feb 5 09:29 AM | Likes Like |Link to Comment
  • Global electric vehicle production on the rise [View news story]
    Incentives will lose relevance as costs come down via production and efficiency improvements and volume pricing.
    Feb 4 05:01 PM | Likes Like |Link to Comment
  • Google selling Motorola to Lenovo for $2.91B, will keep patents [View news story]
    This: Google effectively paid ~$3.7B for Motorola's patents" is nice;

    One wonders if any cross licensing of patents similar to the Samsung deal occurred? The handset business alone can't possibly be worth -that- much to Lenovo when it's losing money?
    Jan 29 05:29 PM | 1 Like Like |Link to Comment
  • Taper boosted; Fed asset purchases lowered to $65B per month [View news story]
    Yep, for my two cents, had we had a bout of real deflation - which looked extremely likely - and rents started decreasing, one wonders what would have happened to all those landlords who had mortgages to pay the payments of which would not go down during deflation.... My primary business is rentals... So I agree with you,
    Jan 29 05:01 PM | 2 Likes Like |Link to Comment
  • FOMC tapers, but continues to eye soft inflation data [View news story]
    Deflationary pressure is scary. It's still out there, and employment is looking like it has less relevance to inflation and economic growth than previously expected.

    It may also be a tacit nod to the fact that unemployment percentage isn't reflecting those exiting the workforce.
    Jan 29 04:56 PM | Likes Like |Link to Comment
  • Falling gasoline prices hurts big oil's plea for U.S. crude exports [View news story]
    "you are already paying at the pump as gas prices are based on global oil prices not wti "

    This is a result of market inefficiencies that -can- be addressed via domestic initiatives, and depends on whether public policy promotes a change therein.
    My perspective is this: Jones act and ban on exporting should be lifted, because exporting US crude will decrease the Brent price, and likely feed back into US economy via a lower global price, and it would be simpler and less harmful overall than the alternative, i.e. the aforementioned domestic initiatives.

    Right now really the only entities really benefiting from the low price of domestic crude are refiners who sell refined products out of cheap crude to higher priced overseas markets. So eliminating the export ban may actually work better at reducing gasoline prices and energy costs than leaving it in place....
    As to Nat Gas, the amount of supply waiting in the wings is awesome to behold and I hardly think exports will impact the cost of energy domestically. However it will boost competitiveness of foreign producers who buy it, but it will simultaneously help us reduce our trade deficit which will balance that out.... Lotsa trajectories to follow on this one I think.
    Jan 29 11:04 AM | 1 Like Like |Link to Comment
  • Why Bitcoin Matters [View article]
    CC companies were forced by law to protect their credit card users. For the same to happen with Bitcoins, some entity somewhere along the way will be forced to incur costs, and will then also attempt to devise ways to offset those costs. The price of becoming a real competitor to incumbent payment systems will most likely be developing systems costs and expenses- and therefore business models- very close to those of the incumbents.
    Jan 29 10:54 AM | 1 Like Like |Link to Comment
  • Why Bitcoin Matters [View article]
    By 2040 someone will have come up with a way to do transnational payments via a e-money system based on a real commodity, like gold, or the incumbent payment systems will have reduced their transactional fees to the equivalent of bitcoin's: much like piracy was rampant prior to iTunes bringing down the price of music to a level most people deemed acceptable whilst simultaneously making the method of acquisition simple and convenient.
    Jan 29 10:49 AM | Likes Like |Link to Comment
  • Falling gasoline prices hurts big oil's plea for U.S. crude exports [View news story]
    Keeping energy costs low catalyzes every single business in the country and reduces costs on every single household. It's a pretty shallow analysis that leads to such a badly misinformed comment as the one above.
    Jan 28 06:27 PM | 2 Likes Like |Link to Comment