[Rhodes22-list] Question for Brad about capital shortages (Economic question about politics)

[Brad Haslett]

Ed,

That is an excellent question and one I don't have a ready answer to.
My gut feeling is that it is and will be a huge factor. I manage a
significant chunk of change for my sister-in-law that is invested in
US tax-free municipal bonds - that money is safe and will remain here.
She and I had a long discussion this summer while in Beijing about
investing in the China equities market and she advised against it,
preferring to invest herself in Chinese real estate (as we have
ourselves).  We had an update on that conversation last weekend via
phone and she softened her stance because of what is happening in the
US stock market.  Capital is the easiest commodity to move around the
world to the "kindest" markets.  I'll do some research on it and get
back to you.  Again, my gut tells me there is indeed a "flight to
safety" taking place as you suggest.

Brad

On Thu, Oct 16, 2008 at 3:10 PM, Tootle <ekroposki at charter.net> wrote:
>
> Brad,
>
> How much of the so called capital shortate is really capital moving offshore
> because of potential Obama win?  That is how much is global capital seeking
> a safe haven? from being socialized? from coersive lending compelled by
> Congress?
>
> Ed K
> Greenville, SC, USA
> special attachment for Andrew:
> http://www.nabble.com/file/p20016650/Obama%2Badvocates.gif
> Obama+advocates.gif
>
>
> Ed,
>
> I've been out flying for the last few days.  Judging by the number of
> people partying on the Riverwalk in San Antonio, the economy's doing
> fine.
>
> Ben is mostly correct, most small business income flows directly
> through the owners tax return.  The Obama bullseye is on those making
> over $250,000 per year.  That sounds like a lot of money to some
> people but it really isn't.  We've been down this road before with
> Jimmy Carter and luxury taxes.  It will be 10 times worse under Obama.
>  The proper description is INCOME REDISTRIBUTION!  That's what the
> whole guys career has been about when he wasn't directing public money
> to his friends private businesses. I still can't believe people are
> stupid enough to believe this crap, but then again, there are lots of
> stupid people in the world. You can't give 95% of wage earners a tax
> cut when the bottom 40% don't pay federal income taxes.  What he
> doesn't say in the fine print is that low income people will get a
> check.  In some parts of the country we have a name for that, it's
> called WELFARE.  In other parts it is called "fairness". Call it what
> you want, it is income redistribution.
>
> Raising the capital gains rate will be economic suicide.  We could
> eliminate our current "flight of capital" issues by suspending the
> capital gains tax altogether for a few years. This whole candidacy of
> Obama has been wishful thinking.  Who really knows what the guy will
> do?  He's hung around Marxists his entire life, you can bet most
> decisions will have a Marxist patina to them.
>
> Frankly, I'm not too worried.  One, his getting elected is not a sure
> thing.  Two, if elected, his Chicago shenanigans can't be kept hidden
> forever. Remember this name - State Street Bank.  I'm guessing that
> will be the smoking gun.  Three, even if he dodges impeachment, he'll
> only serve one term.  Four, I'll move much of my money overseas, so
> will lots of others.  That's not very patriotic but necessary.
>
> I remember selling airplanes during the Carter administration with
> high inflation, ultra-high interest rates, and high marginal tax
> rates.  You could put together some pretty creative (read stupid) tax
> deals with a buyer that would make an airplane positive cash flow for
> the first year.  It was counter-productive in the long run for the
> economy but you did what you had to do.  Some people are too young to
> remember those years, others are just dumb.
>
> Brad
>
>
>
>
> --
> View this message in context: http://www.nabble.com/Tax-Question-for-Brad-tp19960487p20016650.html
> Sent from the Rhodes 22 mailing list archive at Nabble.com.
>
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