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The bonus depreciation tax break pulls purchases for business investment forward into Q4. Congress seems to play with this law every year. On Jan 1, certain provisions expire to limit what business can write off.
Hoonoose, andy thinks only mfg is the real economy (LOL). What a 1st part of 20th century mindset! Like me, he works in that sector, but I fully understand it is only a small part of a giant US 21st century economy that is becoming more diversified all the time.
He is also incorrectly assuming money is a US hostage, ignoring that if we raised interest rates, we'd make investment in other nations far more attractive for investors. They wouldn't simply fund that widget factory in Motown, as they might have when Henry Ford was alive.
Hoonoose, andy thinks only mfg is the real economy (LOL). What a 1st part of 20th century mindset! Like me, he works in that sector, but I fully understand it is only a small part of a giant US 21st century economy that is becoming more diversified all the time.
He is also incorrectly assuming money is a US hostage, ignoring that if we raised interest rates, we'd make investment in other nations far more attractive for investors. They wouldn't simply fund that widget factory in Motown, as they might have when Henry Ford was alive.
The USD is already too strong right now. A significant increase in rates here would only make it worse. Our export sectors would take another big hit.
Another reason I don't see increased rates for some time.
The USD is already too strong right now. A significant increase in rates here would only make it worse. Our export sectors would take another big hit.
Another reason I don't see increased rates for some time.
So we play the currency war game, which doesn't have many winners either.
Quote:
Originally Posted by BobNJ1960
Hoonoose, andy thinks only mfg is the real economy (LOL). What a 1st part of 20th century mindset! Like me, he works in that sector, but I fully understand it is only a small part of a giant US 21st century economy that is becoming more diversified all the time.
He is also incorrectly assuming money is a US hostage, ignoring that if we raised interest rates, we'd make investment in other nations far more attractive for investors. They wouldn't simply fund that widget factory in Motown, as they might have when Henry Ford was alive.
What in the world are you talking about?
Low interest rates encourage and drive investment in equities. It's a no brainer. Why would you put money in the bank, when the stock market is paying more. And just the same, why would you invest in a business when the stock market is paying more???
Those purchasing equities has been magnificently rewarded. And corporations are people too!
Interest rates even at their peak make putting money in the bank (for investment sake) a horrid choice.
The elderly should not be subjected to the short term fluctuations of the stock market.
CDs are a bad investment, thanks to unethical government manipulation that punishes prudent savers, and rewards cronies. It's a doomed to fail policy that will only encourage more bad behavior going forward.
Obama bailing-out the money speculators after the Great Recession using our tax dollars is what slowed the economy down. He never should have done that.
Read the very short but important Op-Ed about this by googling The Inhuman Failure of "Austerity" by David William Pear, Consortium News
Last edited by Mass Transit user; 05-30-2015 at 01:00 PM..
So we play the currency war game, which doesn't have many winners either.
What in the world are you talking about?
Low interest rates encourage and drive investment in equities. It's a no brainer. Why would you put money in the bank, when the stock market is paying more. And just the same, why would you invest in a business when the stock market is paying more???
Those purchasing equities has been magnificently rewarded. And corporations are people too!
The Fed is keeping rates down for their reasons. The Fed might raise rates in due time, for other reasons. This is the ongoing game that has been played for 100 years on the world stage. There are always trade offs and shifts of money whenever rates are changed. There are winners and losers along the way.
Low interest rates encourage all sorts of borrowing and investment, not just equities. Just look at our over leveraged oil sector. Most all personal investment is actually just savings. As in typical stock market holdings. It is your choice to gain there or do whatever else you'd like with your money. It's not all brainless, as there are and have been losers all over the place.
I would invest in myself or business if I thought I had better gains to be had there. And I have and do. As a doc I may have better opportunities. I certainly don't keep all my eggs in one basket!
Obama bailing-out the money speculators after the Great Recession using our tax dollars is what slowed the economy down. He never should have done that.
Read the very short but important Op-Ed about this by googling "The Inhuman Failure of "Austerity" by David William Pear, Consortium News
Bush and Obama did not use our tax dollars. Stimulus has been new money, not tax money. Otherwise it could hardly be called stimulus!
The Fed is keeping rates down for their reasons. The Fed might raise rates in due time, for other reasons. This is the ongoing game that has been played for 100 years on the world stage. There are always trade offs and shifts of money whenever rates are changed. There are winners and losers along the way.
Low interest rates encourage all sorts of borrowing and investment, not just equities. Just look at our over leveraged oil sector. Most all personal investment is actually just savings. As in typical stock market holdings. It is your choice to gain there or do whatever else you'd like with your money. It's not all brainless, as there are and have been losers all over the place.
I would invest in myself or business if I thought I had better gains to be had there. And I have and do. As a doc I may have better opportunities. I certainly don't keep all my eggs in one basket!
I'm speaking entirely from a macro standpoint. Governments don't direct policy based on your personal ambitions, nor should they. Governments do have some responsibility to look out for the benefit of those who cannot protect themselves. Like the elderly, who depend on more stable investments through retirement.
Low interest rates have punished the elderly, and savers alike. These are behaviors we should be encouraging, for the long term sustainability of the economy.
Quote:
Originally Posted by Hoonose
Bush and Obama did not use our tax dollars. Stimulus has been new money, not tax money. Otherwise it could hardly be called stimulus!
Which theoretically robs Peter to pay Paul.
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