Dow Drops More Than 500 Points

[GMScud]

Originally Posted by saden1

This great...I got extra money laying around amd now I have a place to put them. Everything is on sale....buy buy buy!

?? drunk thread maybe?

[saden1]

Originally Posted by GMScud

?? drunk thread maybe?

No, it's called Value Investing Strategy...one of the pillars of investing is to buy more when the stock price of solid companies drop. It makes sense plus it doesn't hurt that Warren Buffet uses this strategy.

[Beemnseven]

Originally Posted by Ruhskins

But I thought we were giving tax breaks for rich..I mean "job creators" so they can create jobs?

Well, we certainly aren't getting hired by poor people are we?

The job creators will create jobs only if it fits their business model. Most Americans don't seem to understand this. There's this notion that if you're wealthy, it's your natural patriotic duty to give up that money in the form hiring someone.

The job of a corporation/business is to remain profitable for their shareholders. That's it. It isn't their job to provide employment. In fact, if somebody runs the numbers and finds that operations can still be successful while reducing labor costs, hiring will stop and the workforce might be trimmed. On the other hand, if it's determined that it would be more profitable to expand services/operations, then you'll see more hiring.

If the rich are fearful that the government is set to confiscate even more of their money, which is what's scheduled to happen at the end of 2012 when the Bush tax cuts expire, you'll see timid, temporary hiring at best.

Now, if government would just get the hell out of the way, stop threatening the risk-takers, entrepreneurs, ... the "job creators" ... by taking more of their money, and instead adopted the policy of allowing people to keep more of what they earn and let them be as wildly successful as they can, then that's an economic environment we'd all want to be in.

[drew54]

Originally Posted by Dirtbag59

I only know so much about this, but a lot of people want to hit a lot the corporations with heavy taxes which from a basic economic standpoint makes little sense. First it raises prices in an economy where many are either unemployed or underemployed. Then it encourages these companies that could be providing jobs to pack up and leave all together for more tax friendly countries.

There needs to be a more amicable solution then just going hard at the corporations with taxes. Only thing I can think of is tax breaks for companies that hired unemployed workers. Make it worth their while.

I was thinking more along the lines of all of these tax incentives that are unnecessary. Do you really need a $7,000 credit to go buy an electric car. If you cannot afford the car don't buy it. Do oil companies need an incentive to drill for oil? Do people who want to fly on a private jet need an incentive to own one? I would much rather see that money go into fixing the highway I have to drive to work on every day. Except not fixing those pot holes is a stimulus plan for suspension and tire manufactures.

I agree the main problem is that there is no incentive to keep jobs in the US right now. Lower taxes for the top individual bracket alone is not going to do that. Better corporate taxes might.

[Slingin Sammy 33]

Originally Posted by Beemnseven

Well, we certainly aren't getting hired by poor people are we?

The job creators will create jobs only if it fits their business model. Most Americans don't seem to understand this. There's this notion that if you're wealthy, it's your natural patriotic duty to give up that money in the form hiring someone.

The job of a corporation/business is to remain profitable for their shareholders. That's it. It isn't their job to provide employment. In fact, if somebody runs the numbers and finds that operations can still be successful while reducing labor costs, hiring will stop and the workforce might be trimmed. On the other hand, if it's determined that it would be more profitable to expand services/operations, then you'll see more hiring.

If the rich are fearful that the government is set to confiscate even more of their money, which is what's scheduled to happen at the end of 2012 when the Bush tax cuts expire, you'll see timid, temporary hiring at best.

Now, if government would just get the hell out of the way, stop threatening the risk-takers, entrepreneurs, ... the "job creators" ... by taking more of their money, and instead adopted the policy of allowing people to keep more of what they earn and let them be as wildly successful as they can, then that's an economic environment we'd all want to be in.

Great post. I would add the increased regulatory burden and the effects Obamacare will have when its fully implemented are major factors in keeping businesses on the sidelines until after 2012. If Obama is re-elected, it will extend the malaise another 4 years.

[Slingin Sammy 33]

Originally Posted by drew54

I was thinking more along the lines of all of these tax incentives that are unnecessary. Do you really need a $7,000 credit to go buy an electric car. If you cannot afford the car don't buy it. Do oil companies need an incentive to drill for oil? Do people who want to fly on a private jet need an incentive to own one? I would much rather see that money go into fixing the highway I have to drive to work on every day. Except not fixing those pot holes is a stimulus plan for suspension and tire manufactures.

I agree the main problem is that there is no incentive to keep jobs in the US right now. Lower taxes for the top individual bracket alone is not going to do that. Better corporate taxes might.

Check out the FairTax.
- Eliminates corp taxes (brings US business back from off-shore, brings foreign business here)
- Everyone keeps their full paycheck
- underground economy is taxed (all unreported income)
- significantly reduces (almost eliminates) the IRS
- simplifies the tax code (you don't need HR Block, etc to do your taxes...you don't do taxes)
- eliminates all tax loopholes provide by Congress to pet constituencies

Americans For Fair Taxation: Americans For Fair Taxation

[12thMan]

Originally Posted by Slingin Sammy 33

Great post. I would add the increased regulatory burden and the effects Obamacare will have when its fully implemented are major factors in keeping businesses on the sidelines until after 2012. If Obama is re-elected, it will extend the malaise another 4 years.

Interesting that you site regulation. Like, what industries have been "over regulated" under this administration? And what tangible data do we have to suggest that it's keeping employers from hiring.

[saden1]

The Chinese work for 10 cents a day. Short of going back in time there is nothing America can do to compete with that.

[saden1]

Originally Posted by 12thMan

Interesting that you site regulation. Like, what industries have been "overrugulated" under this administration? And what tangible data do we have to suggest that it's keping employers from hiring.

LOL...You noticed that too? I don't seem to remember corporate america and small business orgs fighting the law.

[Ruhskins]

Glad to see the good news about the job market. I'm not trying to be political, I'm just glad something positive about the economy has happened.

[12thMan]

Unfortunately, this is very political. The state of our economy and it's pending recovery is centered around our politics and our ability (or inability) to come up with a solution. It's not just the employment numbers and other economic data driving global uncertainty, but the uncertainty coming out of Washington and whether or not our lawmakers can find common ground and signal to the world that we're not going to let the ship sink. No one really liked the debt deal. It's nearly economicaly impossible to prime the economy through austerity measures.

The recent debt ceiling fight left all political players badly wounded and people are now asking how to do we get from here to there if there are no more tools in the toolbox. The Fed is out of bullets, the White House can't/won't get any sizable economic package through this Congress. So it's really wait and see from here on out. I guess economy heal thyself will be the new theme coming out of Washington.

[Ruhskins]

Originally Posted by 12thMan

Unfortunately, this is very political. The state of our economy and it's pending recovery is centered around our politics and our ability (or inability) to come up with a solution. It's not just the employment numbers and other economic data driving global uncertainty, but the uncertainty coming out of Washington and whether or not our lawmakers can find common ground and signal to the world that we're not going to let the ship sink. No one really liked the debt deal. It's nearly economicaly impossible to prime the economy through austerity measures.

The recent debt ceiling fight left all political players badly wounded and people are asking how to do we get from here to there if there are no more tools in the toolbox. The Fed is out of bullets, the White House can't/won't get any sizable economic package through this Congress. So it's really wait and see from here on out. I guess economy heal thyself will be the new theme coming out of Washington.

Good points. I meant to say that I wasn't being political with my statement. I'm just glad to get some type of good news. It seems that for the past couple of weeks any news about the economy was bad and depressing.

[saden1]

Originally Posted by 12thMan

Unfortunately, this is very political. The state of our economy and it's pending recovery is centered around our politics and our ability (or inability) to come up with a solution. It's not just the employment numbers and other economic data driving global uncertainty, but the uncertainty coming out of Washington and whether or not our lawmakers can find common ground and signal to the world that we're not going to let the ship sink. No one really liked the debt deal. It's nearly economicaly impossible to prime the economy through austerity measures.

The recent debt ceiling fight left all political players badly wounded and people are now asking how to do we get from here to there if there are no more tools in the toolbox. The Fed is out of bullets, the White House can't/won't get any sizable economic package through this Congress. So it's really wait and see from here on out. I guess economy heal thyself will be the new theme coming out of Washington.

Republicans championed gridlock and they got it.

[mlmpetert]

Originally Posted by 12thMan

Interesting that you site regulation. Like, what industries have been "over regulated" under this administration? And what tangible data do we have to suggest that it's keeping employers from hiring.

Home Depot Co-Founder: Obama Is Choking Recovery - Investors.com

Just one guys opinion but this seems to be the way small business owners and large corporations feel. There is SO MUCH uncertainity coming out of Washington no body wants to do anything but, like dirtbag said, hoard cash. If youre a ceo and your number one job is to protect shareholders its the fiscially responsible thing to do.

[saden1]

Originally Posted by mlmpetert

Home Depot Co-Founder: Obama Is Choking Recovery - Investors.com

Just one guys opinion but this seems to be the way small business owners and large corporations feel. There is SO MUCH uncertainity coming out of Washington no body wants to do anything but, like dirtbag said, hoard cash. If youre a ceo and your number one job is to protect shareholders its the fiscially responsible thing to do.

This is not just one man's opinion, it's the opinion of a life long Republican hack' who doesn't want you to know that the Obama stimulus is the only thing that has been keeping his company afloat and Wall Street from gutting it during these rough times.


Keep it real homie.