- He did it to halt Corp. inversions and get some overseas $$ back to the US. Time will tell if this is successful because growth has to increase notably to offset the lost revenue from lower taxes. He also thinks that if the people have higher paychecks they will spend more.
- In 09 the regulations were crap when it came to derivatives and are much stronger now. Rating agencies also did not do their jobs.
- Mortgage companies gave loans based on ARMs and amortizations that would never hold up long term. So people bought houses they could not afford and then had to furnish them, etc. It all crashed at once as the ARMs and interest only periods expired. None of this can happen now because there are still stringent REM regulations and Derivatives. For example I cannot offer a derivative unless the Company meets certain thresholds, etc. That was not the case before 09.
- The US had one of the highest tax rates in the world, lowering it means that more businesses stay here and you see the short term effects of one time bonuses, raises, etc. I agree with you that long term it may be a bad strategy but only time will tell.
- Long term artificially low rates were unfair to the elderly who had to invest in equities, hence inflating the stock market because savings accounts and CDs were paying crap. Now they pay much better and savers can invest as such.
Again, the jury is out on this and I am not a Republican. Like you I vote for whomever I believe will be better for me, my family and the country as a whole. Rightly or wrongly.
Good post Boris. And you are correct (generally) in your assessments of "what happened" with the "mortgage industry meltdown", particularly #3.
Your year is still off however as the meltdown was well underway PRIOR to 2009. Both my wife and I work in this industry, me on a limited basis.
As to the "higher paychecks" part. That is largely BS. I've had time to do a family Head 2 head comparison and in OUR household the "tax cut" produced a $48.??/MO. increase. Now, I admit 48 bucks is 48 bucks, but I assure you not many families are going to "spend more" based on 48 bucks per month.
Bottom line IMO, the "tax cut" (a misnomer IMO) is a huge gamble, and Trump is apeing what Reagan did (For FAR more sinister purpose) with the "trickle down" plan. Huge increases in Military spending coupled with tax cuts. On the dole! On the basis of increase in National Debt (based on the Pct. of GDP) per President ONLY FDR increased the debt worse than Reagan...... and in FDR's case the dollar amounts were minuscule in comparison!
There WAS reason and a rationale to Reagan's move........... and to some extent an argument can be made that it was necessary and (even) worked. If only short-term. BUT, I'm not picking on Reagan here, I'm just pointing out that the Trump economic decision is a huge gamble with a growing and rather steadily improving economy! I don't think you can argue otherwise, really.
On another front, I copied/pasted the following quote from your Oxford dictionary passage on Islam (posted earlier)
"Catechism-like pamphlets and essays, often in question-and-answer format and popular language, offer believers quick, encapsulated formulations of belief and practice. Religious activists encourage Muslims to be able to explain why they pray and fast. Such organization reflects a conscious systemization of doctrine and practice, so that masses, rather than specialists, are able to formulate and answer questions about faith. The result is empowerment of Muslims and the creation of new patterns of religious authority free from reliance on traditionally educated religious elites."
Have you never had a 7th day Adventist, or a Jehovah Witness, or a Mormon visit your home to proselytize? Each and every one of them will hand you "tracts" and "pamphlets" designed to effect the same result! Heck, I remember my own childhood faith (Assembly of God........ Yep, me and Elvis!) had "tracts" with the same purpose........ maybe still does, I don't know these days. Heck, nowadays the AG drinks wine........ would have been unheard of in my day! Anyways, proselytizing is hardly reason to condemn an entire faith. As Nancy said........... Just say No!
Boris, Some of us are able to separate the radical Islamist's who practice violence as a "means" to proselytize from the peaceful Muslim's (there are BOTH types, I think!) and further can understand that there IS a group of people who have seen their traditional homelands taken away from them (who HAPPEN to be Muslim) and are now (basically) homeless, or (at least) without a Country of their own who deserve a place to call their own! I can not understand why Israelis and Jewish folks everywhere don't get this as THAT very problem was why and HOW Israel was established/born........To give the displaced Jewish people of the world a homeland........ a place to call their OWN! Why can they not understand the Palestinian's desire for the very same thing!!?? This continual building of NEW Jewish settlements on (formerly) Palestinian lands is just making things more difficult and peace harder to attain!
I suspect that THIS issue was the primary source of the friction and distrust between Obama and Bebe N......... I do think Obama wanted a more "balanced" US stance on Israel and SOME of that Gov't's positions and actions! I'm not Jewish, just an American citizen, BUT I tend to agree with Obama.......... without any antipathy towards our good friend Israel!
3/19/2018 11:37 AM (edited)