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

[ben]

Do you guys really think that the hundreds of billions of dollars that
companies used to put in the commercial paper market is now being sent to
swiss bank accounts, because lending to American banks for a week at a time
is too risky?

It's not.  Banks are keeping their money in their vaults rather than put it
on the commercial paper market.  Smaller investors (100s of millions) are
lending their money to Uncle Sam, so they can turn around and buy bank stock
(which is much better than the original plan of buying bad assets), which
will then hopefully open the commercial paper market back up.

Ben S.

-----Original Message-----
From: rhodes22-list-bounces at rhodes22.org
[mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of Tootle
Sent: Thursday, October 16, 2008 3:11 PM
To: rhodes22-list at rhodes22.org
Subject: [Rhodes22-list] Question for Brad about capital shortages (Economic
question about politics)


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




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