The problem is - tax and spend is fully supported by our Federal Reserve. An unbacked, fiat currency, issued by a Federal Reserve that can manipulate interest rates, create money out of nowhere, and buy up debt gives politicians carte blanche to run all the leftist political and social-engineering schemes they want.
Happy Friday Morning -- New Quarter -- April Fool's Day! After a week of what (imho) I'd call last weeks 'window dressing' stocks yesterday were "flat and quiet". My bandwidth's gone now so y'all need to find your own links, but earlier I saw futures expecting more flat stocks and more upbeat metals.
Hopefully I'll have a better connection by opening bell. If not, don't let anything happen till I can get there...
The only hope is to increase monetary velocity. Negative interest rates are intended to do that but the money needs a place to go. The increased regulations on banks (but not Fintechs) is distorting how small business owners and consumers borrow. As Obamacare continues to get implemented, it has proven to be as much of a drag on the economy as everyone here predicted.
Relatively low energy prices have kept the economy out of recession but has not increased velocity of money due to the lack of investment opportunities.
We have fiscal/cultural problems.
Dodd-Frank, Sarbanes-Oxley, the criminalization of carbon dioxide, ridiculous product liability laws, lax enforcement of copyright laws, government protection of favored entities, nascent fascism(but I repeat myself), political correctness interfering with the hiring process, Obamacare changing the relationship between employer and employee.......the vilification of the salesman, the entrepreneur, white males and the clergy in the culture and on college campuses, the exaltation of “public service” likewise, massive productivity losses due to the progressive tax code and the ubiquitous state lotteries.....creating a pervasive entitlement mentality, and a short-circuiting of boardroom decision making.
Fiscal/cultural problems combine to paralyze the entrepreneur and erode the work ethic.
Let’s try tariffs, consumption(sales) taxes and eliminate income taxes. Gee that only worked for the first 130 years....
BFL