Posted on 02/02/2016 3:57:48 AM PST by expat_panama
Early in the new year, on Sunday, Jan. 3, Federal Reserve Vice Chairman Stanley Fischer delivered a hawkish speech to the American Economic Association. Completely misreading the economy, which is woefully weak while inflation is virtually nil, Fischer strongly hinted that the Fed would be raising its target rate by a quarter of a percent every quarter for the next three years.
The next day, Standard & Poor's 500 index dropped 1.5%. In the week that followed, the broad index fell 6%. The week after that, it fell over 2%. During that two-week period, the Dow Jones dropped 1,437 points.
The dollar went up. Oil plunged 21%. Raw material commodities dropped. And credit-risk spreads in the high-yield junk market rose substantially.
Actually, it was a global event, as stock markets around the world plunged. Utter chaos.
Then the Fed retreated...
[snip]
Thankfully, there's a way out of this mess. Let the Fed keep interest rates and the dollar stable. No more tightening.
Meanwhile, the Republican Congress can pass a significant tax cut for large and small businesses. Push the rate down to 15% for C-corps and S-corps. Provide easy repatriation of U.S. money overseas. And permit immediate tax write-offs for new-business-investment expenses.
Congress could also push for reduced regulatory burdens, although it looks like there's no stopping the Obama administration's unconstitutional march toward even greater regulations.
But a big business tax cut would be the most stimulative way to move the economy from near recession to 4% or 5% growth. That's what we need. Put it together with a stable and reliable dollar, and we can move from pessimism to optimism.
It's been done before. We can do it again.
(Excerpt) Read more at investors.com ...
‘Push the rate down to 15% for C-corps and S-corps’
Why not do the same for all businesses instead of just these two specific groups?
how about non-incorporated businesses, LLCs, parnerships?
B T F D
if interst rates go UP
the market goes DOWN
the only people QE benfitted were the too big to fail banks and the 1%
the $$$ never reached WE THE PEOPLE
only the defecit DID........ 24 trillion worth
THE PROFITS WENT TO THE 1%
and i am not jealous.... just putting forth some facts.......
now ask yourself..... why do we need the fed...???
but every president who opposed it Lincoln Kennedy..... oh well......
Now they’re floating stealing my money via negative interest rates.
Which means it’s just a matter of time before they do it.
http://www.bloomberg.com/news/articles/2016-02-02/rates-less-than-zero-is-bank-stress-fed-wants-to-test-in-2016
Yeah I feel that way too sometimes but I have to remind myself that while I'm important to me I'm just not quite that important to others. We need to keep in mind that the amount of interest payment that a borrower and loaner agree to is merely what it is, and it has nothing to do with "stealing" our money.
Just for grins!
Chase will be very unhappy when I close my account and invest the money in energy companies.
...people QE benfitted were the too big to fail banks and the 1%... ...PROFITS WENT TO THE 1%...
The line of thinking I see here is that Fed-bashing seems to go along with hatred of banks and businesses. That, and it's all part of a loony Marxist agenda.
Isn't that wonderful? IMO, the wine industry is one of the last bastions of capitalism in the US.
If you like a white wine that's on the sweet side, I recommend a Piesport Spatlese or Auslese. IMO, Piesport gets a bad rap, particularly the Michelsberg vineyards. These wines meet the government specifications for terms such as Spatlese or Auslese.
You can usually buy a bottle of Auslese for around $15. A similar vintage from a "name" town such as Graach or Urzig will fetch upwards of $40-$50.
Don't get me wrong...I love all Mosel wines, it was my home for over four years. So many fond memories of dozens of winefests, and hours of conversation with my favorite vintner in Zell-Merl.
This is a lie. Just because something’s been repeated over and over (by the likes of Elizabeth Warren, Bernie Sanders, Hillary Clinton and others) doesn’t make it true.
It’s not a lie. They pay taxes but they get so many subsidies, they end up even on the balance sheet. The consumer always ends up paying their taxes in the end.
“The consumer always ends up paying their taxes in the end.”
Say it ain’t so. Businesses pass their taxes on to the consumers. Always has been and always will be.
What are you talking about? You’re happy choking economic growth in the country?
Market seems to be following oil. Never has. Or is it commodities in general?
Used to be when oil went down other things went up. Oh wait, that was when we used to make things.
I’m interested in free and open commerce not crony capitalism. Those companies are highly invested in our government.
Show me the balance sheet. Publicly traded companies by law have to file all kinds of documents. It should be easy for you to produce the balance sheet.
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