Posted on 03/07/2009 9:15:42 AM PST by AJKauf
1) The proverbial Wall Street capitalists believe that, with new federal income tax rates, the removal of FICA ceilings, increases in capital gains rates, decreases in deductions, and simultaneous tax raises, not only will Obama remove incentives for innovation and productivity, but that he does not seem to care about—or perhaps appreciate—he consequences?
2) On the spending side, investors see too many subsidies and entitlements that may Europeanize the populace and erode incentives, while creating so much debt that in the next decade, should interest rates rise, the federal budget will be consumed with servicing borrowing and entitlement obligations. A redistributive economy in which government ensures an equality of result is Wall Street’s worst nightmare. Debt can only be paid back by floating more foreign debt, issuing more US bonds at home, raising taxes, or printing money—all bad options in the mind of the investor.
3) Too many are beginning to think Obama is, well, a naïf—and hence dangerous. He chest-thumps speeches Geithner cannot deliver. He says we are near the Great Depression—but then, after the stimulus..
(Excerpt) Read more at pajamasmedia.com ...
Yes, Obama hates America. Barney Frank hates America (as all homosexuals do). The two together have created the Barry/Barney market. There is nothing we can do about it. They have won.
This creates another market fear (which Cramer seems to be alluding to), i.e. to make up for funding shortages, the Government will turn to dictating drug and medical company pricing. This of course will lead to bankruptcy, at which time the Government will dictate development and production policy.
This is similar to what has happened to the auto industry as a result of the CAFE standards. Investors fear that industries related to the subsidized and entitled programs will come under government control.
THE BRIGHT SIDE! - If Americans can begin to understand this process, they will GET how socialism is so damaging.
Yeah, beyond a certain point, FICA is not collected. I think the ceiling is around $110,000 but not sure.
Wonderful. My tally of damage can now rise from $17,000 to $20,000 of after tax income removed from my annual household budget when these changes take effect. Paying off the social security maximum in September has left me about $1,000 per month of extra income at the end of the year. That's the same part of the year that merchants desperately hope to get back into the "black" from holiday spending. The merchants can count me out for helping with better sales with Obama's crushing increase in taxes.
Can you say “Weimar Republic?” I knew you could............
I offered this exact scenario to my eighth grade science class last year. I wanted to see how many of the kids would want to divide the points equally so everyone had the same chance. They gave it a resounding thumbs down with the exception of the lowest grades. One girl even verbalized something to the effect:”I’m not giving my points to the lazy bums in this class!!!” I smiled and told her she would never make a good communist!
The ceiling this year is $106,800
Good article. Worth reading the whole piece.
I took some money out at the end of last year, but I didn't want to liquidate all my class A preferred. It is taking a bit of beating, but is still fairly valuable. The 401K is wrapped up in a lot of elements that I can't change or liquidate. It's getting hammered too. The mere fact that my company offers a "qualified" plan excludes me from making pre-tax IRA contributions. When the taxes make a sudden jump, there won't be money left to invest.
“The proverbial Wall Street capitalists”
Who are they?
Let’s see some detail:
A list of names - individual and corporate
Who they supported in the election
How much they donated to Obama
I know ones who are passionate about their love of America. Granted, not many, but there are some.
Once again, you have gotten there first...
I hate January. The loss of pay floors me.
Article Comment:
"I predict Obama will face public demands for his impeachment, if he fails to mend his ways."
People expect Obama to be driving us "back to the house", but he's telling us we have a 'new house', in "Socialismville", and that's where he's driving us instead. He repeats over and over, "You'll like it there."
Impeachment is certainly at the "thinkable" stage.
We need more teachers like you.
How did you ever get past the PC Police?
We are doing the equivalent at the moment of someone in credit card trouble. We are surfing the national debt, from place to place, trying to find lower interest rates, and charging the back interest on the debt which we cannot pay while trying to cover up how bad it is. We are also still spending and charging it. At some point this house of cards is going to collapse. The more spending we do the sooner it will happen. This is not paranoia. It is a simple matter of the mathematics of the situation.
What we are doing is going to bankrupt the country and all the entitlement programs. The Federal government is in as bad a shape as California. Tax revenues are falling. With job losses comes a loss of personal and corporate income taxes. Pension plans of other corporations, not just GM, but GE and others are going to blow up as their stock prices decline, their ability to borrow, and run their business is destroyed. State and city plans also are under funded and will implode.
This is the crisis Obama and Rahm Immanuel think they can manage. They are wrong.
"The problem with socialism is that eventually you run out of other people's money." - Margret Thatcher
I teach in a private Christian school! I did an abridged economics lesson last week when I had some time left over after my algebra class. I gave one girl-the same one, in fact!- a $100 bill. By the end of lesson she was no longer the “evil rich” but the one buying the goods and services of the others in the class. I asked what her tax rate should be, and one boy said 90%. It was pretty easy to show how our little classroom “economy” shrank rapidly. Man, I looooove my job!
BTW-I got that $ back :)
To me and a few other people around here, the danger has to do with him trying to drive down the market so that the government can nationalize the corporations of their choice at cut-rate prices. That theory seems to corrolate well with Zer0’s behavior. Socialism to the max.
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I would agree. It it quite obvious. But where is the LOUD OUTCRY from the Repubs in Congress???? Why are they not screaming bloody hell about this?? They should be — Obama is DOING NOTHING to help our economy — AND THEY LET HIM GET AWAY WITH HIS STREAM OF LIES about it.
Who cares if the socialists have a majority in Congress — the Repubs could STILL BE FIGHTING IT. They could be screaming IMPEACHEMENT, MALFEASANCE, ABUSE OF POWER, anything — just like the rottem media did every time Bush farted. Where is the fight to SAVE AMERICA from a twisted radical Marxist who hates everything about this country???
-ping-
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