McCain says he believes U.S. is in a recession (Gives into MSM Doom and Gloom - DOLT alert!)

The Hill ^ | 4/14/08 | Klaus Marre

[avacado]

"be careful...you just never know whom you’re speaking to. Lot’s of people in self directed IRA’s and 401k’s held bank lots of bank stocks...and if they are in their late 50’s or early 60’s they are very concerned that they may never recover."

If they are that old then they should not have their 401Ks full of stocks. They should have been gradually moving them over to bonds.

[HappyinAZ]

“Hind-sight”=50/50

[NYC Republican]

Exactly! It’s a RISK. Plain and simple... If they don’t want the risk, go into bonds, or better yet, money market funds... Jeez, next thing, they’ll expect a handout or government bailout...

[Moonman62]

The Bush tax cuts of 2003 caused federal revenue to grow from $1.7 trillion per year to $2.5 trillion in 2006. That's 47% growth.

How much did the government grow during that time? The revenue increases were largely due to government spending, and industries where there were bubbles.

[avacado]

“Hind-sight”=50/50"

It's not hind-sight, it's wise investment strategy. Enron should have taught everyone that lesson by now. The stock market is volatile, everyone knows that, and people nearing retirement age have no business having their 401Ks stuffed full of stocks.

[avacado]

"How much did the government grow during that time? The revenue increases were largely due to government spending, and industries where there were bubbles. "

Revenues grew 47% in that time (2003-2006). Federal revenue is from 1) income taxes, 2) corporate taxxes, 3) custom duties. All three combined grew by 47% in 3 years.

[Night Hides Not]

No recession until the neighbors have to sell the snowmachines, four-wheelers, and dirt bikes they bought their darling sons so that they may put food on the table.

The recession starts tomorrow. A large number of tax returns that I've prepared this spring have more AMT, and substantially more capital gains taxes from capital gains distributions in mutual funds.

That means a larger tax bite than was expected by these folks. Money that may have been set aside for a summer trip is now going to Uncle Sam and state and local governments.

OTOH, I could be full of BS. At least I'm willing to admit it, unlike our Senators in the House of Lords.

[Apercu]

You are correct - and we can all thank the Federal Reserve Board and it’s ludicrous monetary policies..

[commonguymd]

I don’t know if it is any of W’s fault, but there is most certainly a significant economic slowdown. Inflation, albeit not registering as I see it first hand, is out there as well. Forget the gas prices as a part of the economy and there is little if no growth.

[Moonman62]

How much did the government grow during that time?

To clarify, when the government spends money that ends up being someone's income and taxes are paid on that. Combine that with taxes paid in the bubble industries and that accounts for a lot of revenue.

[avacado]

" To clarify, when the government spends money that ends up being someone's income and taxes are paid on that."

The government let us keep more of our money. I personally have $4K more of my salary per year under the Bush tax cuts becuase the entire federal income tax rate was reduced twice. When people have money, the economy grows as does the federal revenue.

[commonguymd]

Simple semantics by definition of recession as far as I am concerned, because of the way they adjust for inflation and the rising cost of fuel. Inflated home prices with worthless credit did a lot of good to prop certain things up, but the bills come due. There is a definitely a slowdown and easing up on credit is a band-aid. The clouds are there, but denying that a slowdown and recession is here or imminent because it is bad news is being blind to what is going on.

[Moonman62]

In the words of W, which he repeated hundreds of times, his tax cuts were designed to put money in the hands of consumers. That’s demand side economics. Combine that with outsized government growth, and you’ll always end up in a situation with higher prices, shortages, and economic growth that can’t be sustained.

[avacado]

Not sure what you are arguing at this point? Do you want to raise the federal income tax rates on individuals?

[HappyinAZ]

Agreed....but everyone does not have the same level of investment expertise.......bank stocks seemed safe to them.

Again...don’t be so quick to judge; people of different educational/skill/experience levels make different decisions and MANY have been hit hard in this downturn. McCain is simply identifying with them.

[Moonman62]

Do you want to raise the federal income tax rates on individuals?

Of course not. My point is W is a big government demand sider.

How's W's record on regulations?

[chilepepper]

actually, you are proving how ignorant you really are... show me where I said we were in a recession?

i said we were heading into a recession, which is *certainly* true.

[death2tyrants]

“How’s W’s record on regulations?”

In regards to what?

[what's up]

was adamantly opposed to capital gains tax cuts?

You seem quite confused. Pres. Bush pushed for and got a cap gains tax cut.

This is one of the main factors that has caused the economy to perform strongly.

[NYC Republican]

Prove it. You can predict the future?