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

[Bill Effros]

Brad,

Why do you feel tax-free municipal bonds are safe?  I got out of them.

Bill Effros

Brad Haslett wrote:
> 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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