Wednesday, January 27, 2010
Solution to Problems
Problem: Employment numbers still not showing growth
Problem: Companies are still not meeting downgrading Street expectations
Problem: GDP is erratic
Problem: Credit still depleting
All problems that are now in the second year since Oct 2007’s financial crisis. We all know the problems, but very few viable solutions have been presented. You’ll hear President Obama today talk about the crisis, greedy bankers, political splits, a call for joint reform, healthcare is still a problem, deficit still out of control, people are still out of jobs, and the list will go on. All finger pointing with no active plans to SOLVE the problem. I am offering a solution instead of hearing about solutions that do not work.
CUT THE CAPITAL GAINS TAX!
Yes that is right, if you cut the capital gains tax, it would induce a massive capital injection into US companies, which would give them capital to hire the unemployed, innovate, which will increase earnings, which then will offset the tax cut, due to corporations will pay higher tax dollars on higher revenue. Spending will increase because people will have more discretionary income due to more job creation. GDP will increase, there will be more of a balance in trade and will allow the government to BUY back debt which will decrease the deficit. This will increase confidence in the market place, and will allow people who are waiting for catalyst to buy homes get off the sideline and allow builders to build and inventory to be reduced, all because of a cut in investment tax rates.
This should have been done from the get go. Instead of all this hybrid stiff you see today. This would have put more money in peoples pockets directly and indirectly and none of this finger pointing and demonizing banks would occur. This is a viable solution to our great Nation’s economy. Pass it on!
Thursday, January 14, 2010
Ronald Reagan just rolled over
What just was announced today, sounds were heard of Ronald Reagan rolling over in the grave. Today President Obama announced a Financial Distress Fee to the largest banks that have over $50B in assets to cover a $110B shortfall from the TARP bailout. All the blame has been cast on these firms , and they are getting penalized again for the use of taxpayer money. These banks have already paid back the funds plus interest and had to buy back warrants. All this resulted in the Fed making over $45B in profits. Let's all remember the banks were forced to take these funds, and what happened with AIG, GMAC, GM, and Chrysler? Banks have already been hit with a FDIC fee increase of 15 basis points on insured deposits. Once again this administration has taken this country into socialism and the heavy hand of the government is playing with people's minds. They are going to ride this bailout train till it crashes, but come November the polls will tell who will be pushed around and who does the pushing. Virginia and NJ have already made their statements heard, MA may be next with the running of Scott Brown. It is ironic as well, these large financial institutions were largely responsible for putting Obama in office with their large contributions. I wonder if Jamie Dimon (CEO of JP Morgan) and Lloyd Blankfein (CEO of Goldman Sachs) want their money back?