daily quote
- Thread starter Bob
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the economy is doing well by what measure?
the largest group today in America still
"The most beautiful people we have known are those who have known defeat, known suffering, known struggle, known loss, and have found their way out of the depths. These persons have an appreciation, a sensitivity and an understanding of life that fills them with compassions, gentleness, and a deep loving concern. Beautiful people do not just happen." - Elizabeth Kubler-Ross
we have zero percent life support being applied by the Fed to infinity. Zero true wage growth, millions have dropped from the work force permanently. Millenials are neither marrying or forming households as past generations. Auto sales have a staggering amount of 7 year loans and a third of all transactions new are leases. Let's see the Fed raise rates, and watch the canary keeling over in 2 seconds. I'd say the economy is rather "unbelievable" at the moment. It's true, it can only get better. Were it not for the Fed, there would be chaos. Obama has done nothing to lead on internal investment and job creation through the private sector. He has created an administrative monster on the backs of middle America called Obamacare. That will be his legacy.
When I am not carousing in the mime of "30ABeachBum", I work as the Managing Director of a small investment advisory firm in the Atlanta area. I've been in the business since 1993 and we manage more than a few dollars for clients and retirement accounts. Bob, you are generally spot on with your assessment of Mr. O. My back, along with the back of my partner, are tired from carrying our silent partner, the IRS, who has their hand in our back-pocket to the highest tax bracket (plus some incentive surtaxes) that along with the State of Georgia income tax, puts our taxes at about 49%. So that is one drag on the economy. The next is the low interest rate environment that the Fed has produced. We have have ZIRP for 7 years, forcing those in retirement to restructure their portfolios and take on undue amounts of risk. When not "beach bumming" I spend my days making sure my clients avoid doing stupid things in their portfolio, I can assure you it is a full-time job. We were managing money in 1994 when the Fed boosted interest rates six times in one year, moving the Fed Funds rate to 5.5% by the end of 1994. Six times. And today we are worried (I'm not, but the uninitiated are) about a 25-bps rate hike? The Fed needs to move off of ZIRP and give retirees what they need. The ability to earn a return on a lower risk investment pool that puts their mind at ease. Finally, I concur with the regulatory burden imposed by the government. In my business, well maybe that is a good thing! But in seriousness, the regulatory burden increases the cost of doing business and that cost is either borne by the consumer or the business owner elects to "eat" it and reduces investment elsewhere.
There is no secret about the low productivity, low GDP in the country. Look to Europe for the easy answers: High taxation, high regulation and a population that is not replacing themselves because of the first two. Wait, that sounds like U.S. Missing the beach today.
There is no secret about the low productivity, low GDP in the country. Look to Europe for the easy answers: High taxation, high regulation and a population that is not replacing themselves because of the first two. Wait, that sounds like U.S. Missing the beach today.
Personally, I am enjoying these posts but isn't it time to get daily quotes back to "daily quotes"? Start an "economics" thread.