BOB BRINKER'S BIG ENTRANCE TODAY.....The first 25 minutes were re-runs, but as Brinker ended one of the re-run calls, someone hollered for him to "Go" and walla, he was live on air for the remainder of the program.
==> A treat for all who want to hear that happen from Rahme's audio clip. You will hear it 34 seconds in - then Brinker begins talking about the tax plan proposals.
STOCK MARKET.....Brinker commented that the S&P 500 Index is at 2582, just below the all-time-high of 2597 - that is up 15.3% since the start of the year.
BRINKER STILL BULLISH AND FULLY INVESTED - BUT NOT THE SAME ALLOCATION FOR EVERYONE:
1. BB told 31 year-old Michael from Chicago who was invested 90% stocks and 10% bonds, that in his case, he had no problem with that high stock allocation.
2. BB told Roy from Minnesota, who is invested in model portfolio III and is now at 60% stocks and 40% fixed income, to wait until January to re-balance so he can delay any taxes incurred.
BOND MARKET....BB is maintaining his Marketimer bond funds that are high-yield, but low duration.
NATIONAL DEBT AND DEFICIT....Now Brinker is upset about the national debt and deficits every week. Over the past eight years, he would occasionally mention it.
TAX CHANGES THAT WILL NOT HELP MIDDLE CLASS (according to Brinker):
1. As BB said last week, he is for corporate tax cuts, but made the claim that it will not help the middle class.
2. He is against doing away with the inheritance (death) taxes and claims it will not help the middle class.
3. He is very negative on removing the deduction for state and local taxes. Brinker even went so far as to suggest that people will leave California because of that change.
Honey EC: Brinker referred to "low information people" but he hurried on so I'm not sure who he was talking about exactly
SLAMMING A CALLER WHO DISAGREED WITH HIM.... Caller George from Kansas City, who said he was a business man gave several reasons why the corporate tax cuts would help the middle class. Brinker started his reply with these words: "There's a lot of fiction in what you said!"
Honey EC: George was very gracious and continued trying to reason with Brinker, but it didn't work. Brinker is convinced he knows it all.
TIME TO THINK ABOUT TAX LOSS SELLING ..... Brinker said it was getting into the time to "harvest tax losses." This year, the last trading day will be on December 29th.
==> Thanks to dRahme, audio clip of Brinker's suggestions for tax loss selling.
WASH SALES RULES.... Brinker reviewed the "wash sale," for those who want to keep the same stock they are selling at a loss. Here is a great review of the rule: A PRIMER ON WASH SALE RULES (LINK)...
Honey EC: Rande Speigelman, who wrote the primer for Charles Schwab, is an old friend of mine and former Bob Brinker "critic,"
FRANKJ'S MONEYTALK GUEST-SPEAKER SUMMARY
Professor Lawrence Jacobs of the University of Minnesota was Bob’s guest in the third hour of the November 12, 2017 edition of MoneyTalk. Prof. Jacobs and co-author Desmond King authored the book "Fed Power, How Finance Wins"
The guest is not a big fan of the Federal Reserve. He made it clear he is not advocating their abolishment, but he believes they lean too much toward making sure the financial sector is taken care of and they show less concern with the average Joe and Jill.
When home loans were being packaged into tradable securities with little or no transparency as to the risks, the Fed and other agencies should have stepped up.
Alan Blinder, former Fed member and a favorite of Bob’s has said the Fed is non-political. The guest disagreed, citing minutes he’s read where the Fed was concerned about how their actions would be viewed by us, The Great Unwashed. (My phrase, not his). Prof. Blinder has said the Fed is an “independent neutral arbiter.” The guest disagreed saying there has been a consistent pattern of the Fed favoring financial interests and not favoring consumers.
The trade-off between “finance” and consumers is a big difference between the way Canada’s central bank operates and our Fed. He said the Canadian central bank limits risk to consumers and this is a reason the Great Recession did not hit as hard, north of the border. The government of Canada does not promote home ownership via the tax code like we do. He believes this is one reason Canada has avoided a boom and bust cycle.
The guest said the Fed cut secret deals with the Finance crowd after the 2008 crash. He cited the Bank of Canada and Bank of England as having supported their financial institutions with credit . But, it came with conditions that they loan to businesses and be willing to renegotiate existing loans. Our Fed didn’t do that, nor did our Fed clamp down on executive compensation.
On Glass Stegall, the separation of banks’ investment programs from safeguarding depositors: The guest agreed with Bob that separation makes sense.
On the recovery from the 2008 crisis: The top 1% have more than recovered, most others have not.
Was the Troubled Asset Relief Program (TARP) the right thing to do? Yes, but in his opinion it reinforced the public perception that the government was on the side of the financial sector.
What about the next crisis? He said there will be another one, at some point, and he’s concerned with the Fed’s ability to respond.
Globalization: Bob posited that this “new kid on the block” is a reason why the many people have not recovered, financially. The guest seemed to go along with that.
The guest brought up President Trump a couple of times during the interview, citing him as a critic of the Fed during the campaign. Bob pointed out that he has appointed a virtual clone of Janet Yellen in the person of Jerome Powell, so he must not be that big an enemy of the Fed. The guest speculated that the President understands the Fed is quite well established in Washington. He also mentioned that there has been a “push for audits,” and maybe the New York Fed governor should be approved by Congress. (Ed. note: on the audit question, Alan Blinder has said on prior interviews that the Fed IS audited.)
Honey here: Thank you for the informative summary! I think this happened to be a guest that Brinker did not always agree with, but he was polite to him.
Today, Brinker mentioned a couple of his previous Moneytalk guests.
Here are the links to Frankj's summaries of those guests:
Here are the links to Frankj's summaries of those guests:
Radio Stations
KKOB770
59 comments:
looks like Bob just announced the 800# .. I think he is now on live.
I think Brinker may have just showed up live.
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Moneytalk was re-runs until twenty five minutes into the show when someone hollered "GO" and Brinker came on live.
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Jim and Mike...Yes, that is exactly right. I'm listening to KNUS out of Denver and heard someone tell him to "Go."
Last week, he was gone the whole second hour. Wonder what's going on that he can't show up on time or do a 3 hour show.
HB,
I see you as a person (via this blog) as a person who really understands that freedom has a countermeasure called responsibility.
Seems that a generation ago it was universally understood. Thanks for being reasonable. It is much better than being "fair", which is too subjective. My 2 cents. Maybe 3.
Pavlov's Cat
Is it live or is it Memorex? The monologue sounded like my 8-track.
rasputin here: And here I was feeling bad because I tuned in late. About 23 minutes late. Ha! So, tax reform. The debt. I wonder how much tax is paid by "the middle class" that Bob seems so concerned about?
We need to end "earned income tax credit" whatever that is. And end the welfare state. People on welfare should be working.
How unfortunate. Mr B landed on the Do Not Pass Go Do Not Collect $185 square.
Anonymous: The people who get the Earned Income Tax Credit ARE working, that's why it is called "earned income." Believe it or not this was first proposed by none other than Milton Friedman. He had a different name for it, and when Congress adopted the idea, they changed the name.
You need to have earned income to get the credit, which is refundable. The more you earn the more credit you get, up to a point and then it begins to taper off once you earn about 50K you get nothing. It is better than just giving away money to people who don't work. My gripe with it is that there is a lot of fraud connected with it. The more kids you have the more money you get up to about 3 kids I think.
So, you end up with people "loaning" their kids to each other. Like someone might claim a niece or a nephew for a year in order to get the child tax credit and boost the earned income credit. Then there are the cases of someone filing as early as possible and fraudulently claiming a kid as a dependent -- who might actually BE their kid, but was living with a relative who was the actual supporting adult.
Tax preparers have seen all this and more.
GO!
Was "GO!" uttered extremely loudly at THAT Bob by a Cumulus executive? Is THAT Bob still on?
JC
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Jerrod....Yes, it was fairly loud and clearly aimed at telling That Bob to start speaking - and that is exactly what he did.
I'd guess it was Ravi and he did not know he was talking into a live mic.
So, our national debt now is going up like a bullet? It must be really bad as I remember Bob wasn't so concerned with what I thought was runaway spending back the last 8 years.
Bob's describes a callers input as fairy tales of wage growth upon corp tax reduction. He utilizes the tactic that anonymous utilized. Set up a premise that is meaningless to the discussion. Bob's premise that management would be fired for hiring more workers or giving better wages without increase sales. Well, this is useless info. One could set up a premise that no manager would hire more or pay more if they were losing money. O.k. but how about the corp tax cut ramifications to our economy? The economic benefit to economy is injecting $2T in it. This would reverberate throughout the economy as more wealth. More spending money available. The top economist I've heard and read estimate 50% of the value coming back to middle class such as within wage growth. Really, the U.S. has by far the highest corp tax rate. Were chasing corp profits offshore. The problem with international corporations and the wealthy is they can move away.
Notice that NYC wealthy just reported some pay 57% combined tax within the state. Florida they would pay 0%. I was listening to a head realtor of NYC. He claimed real estate is already dropping. Few wealthy income people would put up with such a tax load.
Bob thinks he's cute with informing listeners that Corps will take that tax cut and buy their own stock and increase share holder dividends. O.k. what's wrong with that? Again the increase wealth will eventually shake out and increase consumable income with increase wage growth. Money eventually is only good if spending it. If you have more you spend more. Bob, doesn't sound like he has a decent economics understanding. More of a Philly trade union broadcaster with notions that special interest and lobbyist are evil and controlling the Rights tax plan. You know how many lobbyist make a living in DC? Modern day, because of the length and breath of federal regulations we are stuck with this critical function. Our lobbyist the smartest component of DC. Our founders setup the country within federalism as states were suppose to most of the economic regulation and offer competition within states. Some like NYC some like Florida. You can chose, but what choice do you have under federal regulation?
We suffered with poor tax policy for 31 years as those that want to improve the plight of taxpayers or utilize more modern thinking within the code will get ambushed as the subject is to easy to demagogue. Originally the country was a Representative Republic for the reason these subjects require full time capable people to understand. That common voting public just not qualified. I don't know what happened, but the modern political low ball tactics are making updates to health care, tax revision, and the rest just about impossible or an insiders game. The only way out is send this authority back to state control. We the people then can vote with our feet.
Funny on how some think on taxes. My kids think taxes are great as they get extra money back with simple forms. One is a missionary and the other family with three kids works as youth pastor in small church. I informed them of the income credit and offered to loan them the money to file for it, but for whatever reason no takers. I guess it was to complicated.
My wife tried to explain the benefits to HSA account with coworkers and most didn't bother with the advantages as they didn't like the extra deductible cost. Some struggling families refused to take the 401 match as they wanted the money now. Also, the crazy stories of poor people and their justifications to spend money. Wow!
I hope dRahme captured that sound bite. I'd like to hear it.
Can anyone give me an idea as to where the 'Go!' for BB to go live was?
I found it and totally missed it. Thanks to the ears of the regulars!
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dRahme...It was about 25 minutes into the first hour. I heard it on KNUS.
Currently not as prolific as the other blogsters, but let me comment that BB probably locked himself into the garage inadvertently while searching for some Kibbles for the Pomeranian here in fabulous Las Vegas, Nevada. It was awesome weather for a walk. I feel like I know the guy.
Just wondering, did bond guru Jeff Gundlach scold Bob at all for his short-duration mania?
Jethro, Las Vegas
Bob's moving? Don't tell me, Colorado.
-Winston Salem
On the way. Other shows, if there is something in particular you'd like to listen to....post it here. I generally have a look at the comments before finishing up the clips.
Happy VA Day! First Gulf war conflict here. Sitting in the engineering room on a destroyer at general quarters for 29 days was not fun.
But........someone had to do it!
Thanks to all who served.
dRahme
Honeybee said:
==> A treat for all who want to hear that happen from Rahme's audio clip. You will hear it 34 seconds in - then Brinker begins talking about the tax plan proposals.
Wow, that IS a treat! GO! What a smooooove transition...LOL!
THAT Bob just went up a few notches in the running for next years Broadcasting Hall of Fame award!
I can't figure out what happened. Usually Bob would get either a hand signal or (more prevalent) the Board Op would give Bob the "GO" verbally via his headphones.
Weird, but deliciously hilarious!
JC
PS: Help for THAT Bob:
https://goo.gl/BF1u41
dRahme, thanks for the clip. That was funny.
So Brinker doesn't think lower corporate tax rates will help the middle class. My response would be "Haven't they helped already?" The stock market has been following tax policy closely and has rallied at the prospect of lower corporate rates. Since many in the middle class have stock market holdings in their 401K's and IRA's they've seen their portfolios grow because of this.
It was mentioned during today’s show that roughly 70% of workers here in the U.S. are living paycheck – to – paycheck. I researched that statement and came up with the following interesting info.
Living Paycheck To Paycheck
Hopefully, going forward, Congress can make the eventual tax reform package middle – class friendly also.
Currently BB is of the opinion that both versions – House and Senate, are only business friendly.
Call me a glass half-full type of person. I am optimistic that Congress will make this a win – win for both business and labor. Perception is reality. The Congressional elections are less than a year away. I have to believe that all incumbents will be aware of this simple reality.
The first 25 minutes were re-runs, but as Brinker ended one of the re-run calls, someone hollered for him to "Go" and walla, he was live on air for the remainder of the program.
My guess is Da Brink (Bob's pet name for himself) was busy getting his talking points for today's broadcast from the DNC...
Son of TFB (literally)
Jester that is an interesting quick read. Another great summary and audio clips. Thanks.
The guest comments spot on. Financials have way to much power in DC. If you want a top Poor's rating financial bank look at TD.. Convenient as they do business in U.S. too. If ever our financials looked shaky, again I would definitely travel to Toronto. You have to be physically present to open up savings and checking. It's not particularly cheap bank account, but a financial rock. Glass-Segal was a good start. Dodd Frank just a cya reaction.
I do think tax free savings accounts should be automatic. That employees would have to opt out. Ben Carson campaign mentioned utilizing the tax free as life savings account for major investments of education, homes, and retirement. I think this is a no brainer for maximising common people plight. This open market approach is way better than a bureaucratic costly solution run by political whim. My guess a U.S citizen could receive $5k total stock market index fund from treasury at birth a better solution than all the social welfare operations.
Education is always the primary driver of wealth. Motivation the second. We all have read stories of common folk obtaining riches by following good advice. It has always been my viewpoint upon educations that like most things you get what value you pay for. Getting free education is very low value. To that wisdom, it would truly be a blessing if our entire education system were axed. Pushed out of typical government funding and political arena. My guess it would evolve to more German type trade training with lifelong education on performing better. Maybe a job or journeyship process in which many more get involved in employing and training youth. The youth first learn to work and attracted to employment as a way to get ahead. They actually pay for education that results in wage increase.
Did you read Jay Schechter article on bonds from Miami Herald?
He claims since low interest rates will rise and investors are holding such a large percentage of their portfolio in bonds we have much to lose.
What to do? Go with BB advice- Short-term junk, high-yield bond funds as even though the higher risk, the short duration reduces the risk of default. This also allows the investor to move from vehicle to vehicle more quickly and capture the benefit of an interest rate increase.
International bonds: While the Fed may be raising interest rates at home, that doesn’t affect bonds outside the U.S. Right now, there are some emerging markets that are performing especially well.
Interesting that Vanguard has a new international Wellesley fund that talks of the same advantage. May international bonds be a good investment for security?
This again reminds me of the futility that BB communicates within the "Land of Critical Mass". He says you can forget your finances at that point. I don't think so. Also, the notion that one merely needs to rebalance funds for top security. Also, I'm questioning the value to take the income tax hit because of the primary importance to rebalance portfolio. Seems to be an expensive choice for minimal protection. I would advise to change out your tax free accounts to balance as a better option overall. Also, do include the value of Social Security within the balance.
What ever happened to repairing the infrastructure?
I say, GO, GO, GO, GO, GO, GO, GO, GO!
I wish GoBob would have spent more time discussing the stock and bond markets instead of the proposed tax changes.
Jim said... "So Brinker doesn't think lower corporate tax rates will help the middle class. My response would be "Haven't they helped already?" The stock market has been following tax policy closely and has rallied at the prospect of lower corporate rates."
Smile responds... I disagree on the impact of the thought of tax reform passing being responsible for the current market rally. Earnings drive the market and they have been stellar of late. Just now starting to trail off which is why the market is teetering a bit. The smart money doesn't think tax reform will happen. Also Brinker is correct if you define middle class as earning 75k or less for a couple. Most in middle are living pay check to pay check and probably do not participate in the stock market to any great degree and even if they did the up reason is not tax reform rather it is earnings.
If tax reform fails and the market doesn't fall much then that would confirm my position. If tax reform passes and the market goes up like a rocket this would also confirm my position.
smile
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Son of TFB...Are you saying that you are actually TFB's son?
If so, I have a photo of you posted on this blog long ago.
You are laying on the floor with a beautiful cat on your chest.
I'm guessing you to be in your teens now?
Thank you again for your thorough and information summary.
photo of TFB's cat, Grizzly (scroll to the bottom):
http://honeysbobbrinkerbeehivebuzz2.blogspot.com/2010/12/bob-brinkers-reading-list-what-you-wont.html
frankj---thanks for all the great summaries & to HB for making this a 'go to site' for beneficial information from informed contributors-----dj
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Biker....thank you for finding that photo of TFB's son and Grizzly.
Here is the link live
It's also fun to read what Brinker was saying in 2010 the year after the megabear market ended with a 57% loss (top to bottom)
Thanks, DJ and IrishCajun!
On the re-broadcast on MTOD, it appears that Bob came in live at the 9 minute mark.
GE closed -7.17% and is at its lowest point in 5 years. Thomas Edison must be rolling in his grave.
http://schrts.co/SUpcGb
JC
The famed GO! expletive was Bob directing his beloved grandkid rug rats out of his phone booth so he could participate in the task at hand.
If he's paying for the airtime, he can throw up any crap he wants. It's his dime as the major sponsor of the whole Sunday afternoon circus.
But keep doing it, Boob. It's definitely more entertaining than the yelling from the other financial "shows".
Ain't that weird, all the financial shows are about yelling (Cramer, Edelman, et al) and the Fed Chair's name is Yellin'?
Slink Williams, Yuma
Brinker is successful because of his broadcast show host abilities. He always wanted to be in the business on the mike end of popularity. His sports casting start, must have not ended well? Rush Limbaugh had the same desire for the business. These guys learn the trade and are successful communicators. They are sell and hype to keep audience interests. Brinker knows when to hit the button to limit discussion to ensure audience that he is the master. His show is set up to imprint on listeners that money talk will make you rich. That his services and wisdom will do the same. Let the buyer beware. He may not have your best interests at stake. Most talk shows utilize the audience to sell product. The product really is not any different that other products in the market. They use their influence to market sales. In the end, this is their motivation as it makes money. Your wealth is not a concern. Your interests in wealth as a hook is.
http://www.zerohedge.com/news/2017-11-14/its-turkey-market
AD
So what's the market fretting about today? All the good earnings are out so I guess the smart money has decided to take their profits and run.
Let's see if we get some recovery towards the end of the day hopefully buyers will come back and fill that Gap.
Home Depot beat on earnings and the stock is down a buck issued good forward guidance. Analysts on saying that Home Depot beat by nickel and stock is normally about flat to slightly down not to worry it should grind higher.
This is a partial test post I just bought a new tablet from Walmart and I am speaking this instead of typing. Sweet!
smile
GO!
Where is everybody?
What brand of tablet is that smile? Is it a big one?..I like to stream movies.
"Where is everybody?"
They only show up when the market is up.
Bob, it's a Samsung Galaxy Tab A 8" (SM-T350 Titanium 2015 model). $149 @ Walmart in store purchase. The 7" model is $12 less so it made more sense to me to get the 8". Amazon cost is +40 more for the 8".
1.2GHz Quad Core processor, 16 Gigs internal storage, 1.5 GB RAM, microSD Card Slot (Up to 128GB) WIFI only
I got it to use a banking app so I can make mobile deposits again. My old Galaxy Tab 2 still functions but not for this mobile banking app. My ability to use the banking App on my Win10 Asus laptop was stopped by my error while cleaning my laptop of some win10 bloatware I got rid of windows store cause I already had the mobile app and did not know that windows store was needed on the laptop for updates since I thought I could readily access windows store online. Too much trouble to try and get windows store back on my laptop. Oh well $146 well spent on the new tab. TMI but crazy back story.
FYI The Tab A has the Mirror feature to play or cast to your smart TV what is showing on your tablet like a movie if your smart TV is compatible and has this feature also.
Wow market is blowing and going today. I saw early this morning Walmart beat on earnings and had better than expected forward eps look. I own WMT. GO on WMT.
I always compare Amazon to Walmart for pricing items I want to purchase.
smile
Vanguard High Yield Corporate is down 2% this month. Could Bob be right about his duration preach? The fund has a duration of 5-6 years.
Unknown: Per the Vanguard website, Vanguard High Yield (VWEHX) has a duration of 3.8 yrs. Vanguard Total Bond Index (VBMFX) has a duration of 6.1 yr and is unchanged over the same time period.
Whatever caused the two percent dip in junk bonds doesn't appear to have anything to do with duration.
https://www.marketwatch.com/story/a-selloff-in-junk-bonds-may-not-spark-a-crash-or-a-recession-says-deutsche-bank-2017-11-15
https://www.zacks.com/stock/news/282699/junk-bond-etfs-plunge-to-sevenmonth-low
I've noticed there is a lag time between market flux in 10-yr Treas. yields and my bond fund's market yields, as it might relate to duration. Haven't figured out the correlation yet.
Actually, have given up trying.
Ed Johnson, Skokie
https://www.forbes.com/sites/anthonynitti/2017/11/10/senate-releases-its-tax-bill-how-does-it-compare-to-current-law-and-the-house-proposal/#797232094425
According to the above November 10th Forbes article, the House version of the tax reform bill would have a single filer with taxable income between $38,700-$45,000 in the 12% bracket for ordinary income and the 15% bracket for long-term capital gains. Also a married couple filing jointly with a taxable income of $77,400-$90,000 would be in the 12% bracket for ordinary income and the 15% bracket for long-term capital gains. Thus short-term capital gains (taxed as ordinary income) would be taxed at a lower rate than for long-term capital gains in these income ranges.
Does anyone on the BRT know if this provision for capital gains rates was retained in the version of the bill that was voted on and passed by the full House today?
The low volatility is keeping the rally alive
Bought some vol protection today. Next week, as our equine friend Gabe says, " hang on to your suspenders!"
Pavlov's Cat
Think I'll submit this now since nobody will read it late on a Saturday night. Nobody will notice if I'm wrong because the east coast folks will never know this entry exists.
In other words, since everyone reads HB's blog immediately after bagels-n-cheese on Sunday, the old blogs are yesterday's news, water over the bridge, ancient history and (to some) might as well be fiction.
Brinker's Marketimer always lays out compelling historical data regarding the second year of a President's term as it relates to stock market behavior. I won't quote or divulge the analysis because I respect copyright laws for researchers who compile data (which is work) for the benefit of those who wish to obtain it (customers).
Anyway, it will be interesting to observe how cash reserves can be employed during 2018. It could be big, like a Cuban cigar, or it could be just a little thing like a melting Dairy Queen vanilla cone, with Mr. Buffet's smiling face attached.
Either way, it's time to salivate.
Mike "Westy" Coleman, Huntington Beach
Yeah, and Brinker's claim on his web site about Hulbert 2017 Honor Roll is fake because the hyperlink itself references a "2016 ranking". Hulbert quit ranking shortly thereafter for personal reasons.
Hate it when people are rank.
-D. Sizemore
BB isn't the only financial guy that is blending personal politics/bias within the financial analysis. I just read a free report that ended with warnings of investors placing to much value on the tax plan. The cost and lack of evidence that tax cuts would boost GNP. So, this guy was placing max value of the Fed rate impact upon economy. His early warnings were to discount the hype over Trump. Much of it was aligned with BB thoughts.
I can't believe a financial guy with economic understanding would take such a position. This guy had a graphic of Oval Office as a comparison of deficit spending and GNP. Reagan had a steep incline of spending but a piker as compared to Obama. The worst part the deficit shot up and the GNP gradually and slowly improved, marginally, whereas the Reagan tax cut impact on the GNP was outstanding.
This makes sense to me. Obama utilized the Keynesian theory that was popular in Roosevelt years. That the private sector wasn't making it happen. It was up to government deficit spending. The problem is to turn the economy, the best medicine is put the old inefficient systems out and maximize the ability of new kids to do more and with less. To let the economy naturally become more efficient. Creative destruction. Government spending is horribly inefficient. It's the old chinese method. Some say infrastructure is o.k., but I say it's better to just let the natural purge have a much quicker effect and to improve liquidity, lower regulation cost, lower tax burden. This will energize the domestic product market. This market has 10-100x the power of federal spending, besides federal spending is always littered with political corruption. Politicians utilize the spending to extend control. This is why the Great Depression took forever to end. Not until WWII did it end. The politicians sucked up all the liquidity for their use and left the private sector blowing in the wind.
There is a huge benefit to getting our corp tax rate at a competitive level. Any financial advice guy poo pooing that is out to lunch. If you want the GNP to grow put more resources under the control of private sector. Growing GNP to 3% is critical concern to eventually overcome our sins of excessing national debt and over promised entitlements.
Bob from Oakland here.
Thanks Trees for your opinion.
To dismiss Keynesian theory as outdated/ old fashioned is ill informed. Unlike trickle down it has been used successfully.
The stimulus measures it employs are all about just the thing you want "put more resources under the control of private sector" by freeing up access to credit. No reason to believe that letting "the natural purge have a much quicker effect" will improve liquidity, in fact its likely to cause a downward spiral of the economy, freezing the credit markets. You see lenders have to be confident loans will be repaid, and letting the economy tank does not accomplish that.
There is nothing inherently correct in stating "Government spending is horribly inefficient".
It would be just as absurd for me to suggest that the private sector acts only out of greed.
With Chase alone paying 10s of billions for acting unlawfully the demand for less regulation is radically anti consumer.
Why can't we put down our hyperbole and work together for common goals. Lets focus on improved regulation - more effective, less burdensome.
Other countries largely have concluded that health care should be an area where we limit the ability of large corporations to operate with transparent greed to profit from services every one of us needs.
The economy is tied to the political climate,hence appropriate for BB to weigh in.
I am confused you want to over simplify how the deficit increased under Obama ignoring that congress spends money not the president, and then cheer lead for an estate and corporate cut adding trillions?
I don't know what 'walla' means, although i remember being in Walla Walla, Washington, once. Is 'walla' a word (maybe, as in Walla Walla)? i do know what 'voila' means. It is a word, though not an English word.
b
As Unknown posts the conventional wisdom of party politics. One must know that a large majority of politicians sitting in DC want more control, power, wealth. They need to be forced against a wall to vote for their self sacrifice to better the country.
Gov't is horribly inefficient in spending. This is by definition and one pillar of economics. Anyone with experience knows this to be true. I have hundreds of examples and personal experience. It is not a draw. It is multiple differences in value. Regulations per say do little to offer actual protection. To be capable they must continually reviewed, updated, and made more efficient. We need to measure their effectiveness and destroy if not worth the cost. Some think FDIC is the gold standard. Read a discussion on the merit of such a gov't guarantee in financial crisis where needed.
One must understand that pushing more of the economy toward DC control will only result in more corruption and crony capitalism. It will result in more bad behavior of corps as they can pay for friendship.
Keynesian theory was obsolete until some recent political flury that utilized the premise to excuse horrible deficit spending. Same as the Great Depression need and with the same results. This is why so much effort to explain to public that the GW had put the country into a ditch, so don't expect much economic improvement.
The cheap money resulted in stealing retiree wealth, helping the rich investments, and hurting low and middle class. All asset classes zoomed in price. Job growth and economic growth was dismal. This was to be expected with such government intervention.
smile said: "it's a Samsung Galaxy Tab A 8" (SM-T350 Titanium 2015 model). $149 @ Walmart in store purchase."
Quick update I was able to save an extra $22 or so getting the price down to about $127 by catching a price match on Walmart.com which occurred within the 14 day return.
Good lesson for anyone making a purchase to check pricing reductions within the return time frame.
I was able to snag a nice Pro case navy blue from Amazon for $15.99.
smile
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