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The wealthy don't just purchase commodities. Wealthy people invest in bonds that fund governments (like our federal, state, and local) and businesses (like T, TW, CSX, GM). They also fund startup businesses in the private market. These governments and businesses will use those funds to offer goods and services to consumers. Every developed government and major corporation in the world was fueled by investment from the wealthy. Cell phones, the internet, computers, housing, cars, TVs, entitlements, roads, and almost everything else is fueled by wealthy investors. If wealthy people stopped buying bonds then funding for goods and services would plummet. Governments and businesses wouldn't have the funding they need to grow and our lives wouldn't be as comfortable as they are now.
Middle class people do this and do it much more. When many people purchase many services and many goods from each other there is a growing economy. The middle class would do even more if they had the money. The middle class also is much more likely to shop and buy locally helping the economy grow.
What the wealthy do do is run away from the U.S. dollar (pushing up prices on everyone) because they know that the value of the dollar is declining, so they put the money overseas in off shore accounts and put it in commodities pushing up prices etc. This is exactly what is happening and has been happening as concentration of wealth has continued to increase over the last two decades under both Democratic and Republican administrations.
Trickle down economics is exactly that. During the Middle Ages it was called serfdom.
The wealthy don't just purchase commodities. Wealthy people invest in bonds that fund governments (like our federal, state, and local) and businesses (like T, TW, CSX, GM). They also fund startup businesses in the private market. These governments and businesses will use those funds to offer goods and services to consumers. Every developed government and major corporation in the world was fueled by investment from the wealthy. Cell phones, the internet, computers, housing, cars, TVs, entitlements, roads, and almost everything else is fueled by wealthy investors. If wealthy people stopped buying bonds then funding for goods and services would plummet. Governments and businesses wouldn't have the funding they need to grow and our lives wouldn't be as comfortable as they are now.
That is BS! Go back to watching TV. 100 million Middle class can invest better than a thousand super rich.
I have my own business. The rich did not give me my business. They also did not finance my business. Steve jobs built his Apple computer business in a middle class garage without Wall-Street. Wall-Street only starts licking their chops when they see someone else getting rich off of their successful business. Then the Wallstreet vultures come swooping in to take siphon off the profits because god forbid the Apple workers might get paid to much. After all the entitled rich trust fund babies are entitled to everyones profits.
The rich at IBM scoffed at the thought of a PC.
PIMCO & China stopped buying bonds & the US did not grind to a halt. Now they are buying again.
Last edited by KrazeeKrewe; 11-10-2012 at 01:35 PM..
Middle class people do this and would do it more if they had the money. But what the wealthy do do is run away from the U.S. dollar (pushing up prices on everyone) because they know that the value of the dollar is declining, so they put the money overseas in off shore accounts etc.
That is just a generalization. Most wealthy people don't dodge taxes and are supporting tax increases on their income. I don't see a point in trying to paint these people as villains. It's as silly as people saying the lower class is a burden on society.
That is BS! Go back to watching TV. 100 million Middle class can invest better than a thousand super rich.
I have my own business. The rich did not give me my business. They also did not finance my business. Steve jobs built his Apple computer business in a middle class garage without Wall-Street. Wall-Street only starts licking their chops when they see someone else getting rich off of their successful business. Then the Wallstreet vultures come swooping in to take siphon off the profits because god forbid the Apple workers might get paid to much. After all the entitled rich trust fund babies are entitled to everyones profits.
The rich at IBM scoffed at the thought of a PC.
PIMCO & China stopped buying bonds & the US did not grind to a halt. Now they are buying again.
I'm not saying the middle class doesn't invest in bonds that fund governments and businesses. I'm saying that the wealthy invest in bonds that fund governments and businesses. It seems that you are saying that all the wealthy are bad guys. I'm just saying their not all bad.
That is just a generalization. Most wealthy people don't dodge taxes and are supporting tax increases on their income. I don't see a point in trying to paint these people as villains. It's as silly as people saying the lower class is a burden on society.
They don't have to dodge taxes. They just help legislatures rewrite the rules so that they can maximize their deductions. The 15% on carried interest (venture capital firms) was the brain child of Bain Capital, Romney's firm. They also were the ones who rewrote the financial rules that led to the great financial disaster and they are literally on the Federal Reserve Boards which bailed them out. It is quite a game they are playing and they divert attention with social issues. Meanwhile they are gathering all of the money in their accounts.
The markets are not crashing just adjusting their investments from equities ot things like bonds more. Obama is a Democrat that promotes more taxes from investors ;so its risk off when he won.Just has FED has QE3 to promoate equities;but isn't workig this time. Basically taxing somethig just lowers the reward and chnages the risk verus reward that investors see.Mnay think that lokig forwaqrd that the FED actaions have worn thin from repeat and that the economy is slowing as retailers decide to hunker down with the debt resulting in higher taxes and or higher prices coming.As far has taxes the governamnt ditribute stats on just who pays what per cantage of revenues federal government depends on rgrdlessas pof any loopholes for either middle class homeowners;the poor getting unearned incoem or the risch gettig breaks for investing as governaqmt wants, Clearly the top 10% pay t a huge proportion.
That is just a generalization. Most wealthy people don't dodge taxes and are supporting tax increases on their income. I don't see a point in trying to paint these people as villains. It's as silly as people saying the lower class is a burden on society.
The rich I know did not get there by being nice. Most did it at the expense of others. I was in insurance finance seminars where the rich were telling us to sell people sub-prime home equity loans to get all the equity out of their homes so we could leverage them to the max & invest it for them in their tax sheltered charities stock market accounts. I was of the opinion that their home was a better investment because that would at least keep them from being thrown out into the street if this went south. I only wanted to invest their discretionary money after their home was paid for. These guys hounded us saying if you don't want to talk these people into maxing out their home loans then we will find someone who will. I refused because I could see this train-wreck coming & felt responsible if I sent a hard working citizen into the streets. I did not imagine so many would fall for this & did not imagine it would grow so big that it would become systemic & take down the whole economy.
These Wallstreet bankers want us all in the streets begging to rent or buy our houses back. So lets reward them with fewer regulations, more bailouts & lower taxes on their dividends. Hail to our rich masters. They have our best interest at heart.
The rich I know did not get there by being nice. Most did it at the expense of others. I was in insurance finance seminars where the rich were telling us to sell people sub-prime home equity loans to get all the equity out of their homes so we could leverage them to the max & invest it for them in their tax sheltered charities stock market accounts. I was of the opinion that their home was a better investment because that would at least keep them from being thrown out into the street if this went south. I only wanted to invest their discretionary money after their home was paid for. These guys hounded us saying if you don't want to talk these people into maxing out their home loans then we will find someone who will. I refused because I could see this train-wreck coming & felt responsible if I sent a hard working citizen into the streets. I did not imagine so many would fall for this & just did not know it grew so big that it was systemic & took down the whole economy.
These Wallstreet bankers want us all in the streets begging to rent or buy our houses back.
Certainly my experiences. The people who rise to the top of the money heap are pretty unscrupulous and care about one and only one thing ... money. The less scruples they have the higher they go. As Romney said, he likes firing people. That is no joke. Out of the mouth of babes.
Certainly my experiences. The people who rise to the top of the money heap are pretty unscrupulous and care about one and only one thing ... money. The less scruples they have the higher they go. As Romney said, he likes firing people. That is no joke. Out of the mouth of babes.
Romney was not my perfect candidate, however honestly, in my opinion, I think he would've been the better person to lead us out of this mess than Obama. I just don't see growth coming anytime soon. Maybe I'll be wrong, but what policies does anyone see coming that are going to drive growth??
You don't have to like the president or think he's a nice guy, you need the person who's going to be an effective leader.
I just think we are a society that will take, take, take if its given to them...
The rich I know did not get there by being nice. Most did it at the expense of others. I was in insurance finance seminars where the rich were telling us to sell people sub-prime home equity loans to get all the equity out of their homes so we could leverage them to the max & invest it for them in their tax sheltered charities stock market accounts. I was of the opinion that their home was a better investment because that would at least keep them from being thrown out into the street if this went south. I only wanted to invest their discretionary money after their home was paid for. These guys hounded us saying if you don't want to talk these people into maxing out their home loans then we will find someone who will. I refused because I could see this train-wreck coming & felt responsible if I sent a hard working citizen into the streets. I did not imagine so many would fall for this & did not imagine it would grow so big that it would become systemic & take down the whole economy.
These Wallstreet bankers want us all in the streets begging to rent or buy our houses back. So lets reward them with fewer regulations, more bailouts & lower taxes on their dividends. Hail to our rich masters. They have our best interest at heart.
To further expand on this point of how Wallstreet operates, they do the same thing to successful businesses. Mitt Romney's Bain Capital would go around finding businesses who had a lot of equity built up & good credit. He would then barrow money from his investors to buy controlling interest in the company. Then he would take the newly acquired companies equity & pensions to pay back his shareholders. Then he would use the newly acquired companies credit to barrow as much as possible & pay his company, himself & his investors fat dividends. Now this newly acquired company has no pension funds & huge debt load. Their workers will pay the price & many wind up on the government dole as the 47% takers Romney doesn't care for since he put them there in the first place.
After raping these companies & increasing the takers burden on the government Romney believes he should not have to pay taxes on this money he plundered & hides it off shore or treats it as carried interest so he pays half the tax rate we have to pay. Massachusetts did not re-elect Romney as governor & did not vote for him as president. That should tell you a lot right there. Then lets look at what happened when his father George Romney ran HUD. Corrupt bankers like Romney can use GSE's to cause a financial crisis by themselves & have done so in the past. Just look at The House That George Romney Built
Quote:
Richard M. Nixon came to office in 1969, so it was left to a Republican administration, and Mr. Romney, to preside over the first mortgage-backed security sale in 1970, which they enthusiastically embraced. “This event,” Mr. Romney said, “marks a revolutionary step forward in our efforts to increase the funds available for mortgage financing.” But in an eerie prefiguring of the 2000s, the subprime lending program soon fell apart as predatory lenders and unscrupulous house flippers defrauded first-time buyers. The government found itself insuring mortgages on houses that could never be resold. After first denying the problems, Mr. Romney was ultimately forced to freeze the program in 1971. Yet even as the lending program ended, the mortgage-backed security sector blossomed, at least for higher-quality, middle-class homes. Securitization worked as an instrument to connect local demand and global capital.
Bypassing traditional bank deposits allowed money to come from almost anywhere: small-town banks, union pensions and European investors could all buy American mortgages. Lending on houses, at least for middle-class housing, became easier than ever before.
And that was the problem. While Mr. Romney may have stopped the fraud, he didn’t address the flip side of the urban crisis: the millions invested in mortgages was money not invested in business.
Small-business loans, however, still relied on those dwindling deposits and could not be securitized. Big corporations and small homeowners could rely on the surging global capital markets, while small business found itself crowded out.
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