Jack K

Great Depression Not Imminent, But Inevitable

Although I agree with you in many areas of your comment, i don't think that the capital gains cut hurt. Any decrease in taxes are good. Taxes are already paid on capital gains by the company that made the profit.


On Dec 18 05:45 PM Chris B wrote:

> There is the casino and there is the factory. Only one of them produce
> wealth.
>
> The factory pays 35-40% taxes for producing wealth. The casino finds
> ways to dodge taxes, and then only pays 15% for their cap gains,
> dividends, and interest for producing.... well... not much. In the
> US, we punish the factories and reward the contract flippers for
> houses, credit default swaps, stocks, etc.
>
> In theory, the casino could go broke underwriting dumb bets (CDS's)
> or loans (mortgages) and the factory could continue to produce all
> the actual wealth. However, in reality, the factory needs the casino
> to loan it money to grow and to provide financing to its customers,
> so when the casino goes down due to gambling that is not even related
> to actual production of wealth, it takes the factory and our GDP
> with it.
>
> Perhaps the people who work for a living actually producing something
> should request that "investment" banking and actual banking be re-separated
> by law so that they are not again the victims of bankers' foolish
> gambles. This was the case from the end of the depression until
> 1999, when the big banks lobbied to repeal the Glass-Stegal act as
> a way to promote growth.
>
> How did that work out for the factory, the integrity of banking and
> investing, and our economy? Also, did the Bush tax cuts on non-productive
> earnings such as capital gains, interest, and dividends have anything
> to do with the gamblers running wild?

Great Depression Not Imminent, But Inevitable

I agree. but remember, we live in a republic, not a democracy.


On Dec 17 10:23 AM TAS wrote:

> Much like the old Soviet Union "we will bury you" period of history,
> those predicting the demise of the West accompanied with the implied
> rise of another system is interesting, but flawed.
>
> As Churchill remarked, "democracy is the worst form of government,
> except for all of the others". Corruption in the West is eventually
> exposed and is the exception, not the rule. Corruption and deceit
> in India, Russia, China and many like societies elsewhere is not
> only endemic, it is accepted.
>
> Regardless, enjoyed reading your opinion.

Bretton Woods Redux: The Real Bridge to Nowhere

As long as we have too many citizens, who vote, who believe that the role of government is too make their life better/easier, we will never become stronger as a nation. Socialism doesn't work. It only empowers certain people, who did not earn it, and allows jealous people to be happy that others do not have more than them.

Tuesday Outlook: Commodities, Emerging Markets

We're doomed!

Wednesday Outlook: How Far Can Bulls Take It?

I agree. The last one is amazing!