Greenspan: Let Bush's Tax Cuts Expire

[Slew Foot]

Greenspan...Greenspan...Greenspan..., wasn't he the guy that didn't know anything about a housing bubble?

That was actually Bernake, the guy whos in charge right now.


In 2005 for example, he claimed that a housing bubble was a 'pretty unlikely possibility.' Even in 2007, Bernanke went on record to state that the Fed 'does not expect significant spillovers from the subprime market to the rest of the economy.'

 

[Zebo]

Bush tax cuts single handidly saved our economy. To let expire will kill us.

LOL economy was being pumped with excessive debt that's what "saved" our economy. And will ruin it once and for all when you can't pump bubbles no mo. Not only will you be left with a dumb ass populous who can't compete with hard nosed chinese/germans etc you got massive debt to pay.

 

[IGBT]

I agree, they should be allowed to expire, especially for those in the bottom bracket which will go up 50%.

and get ready for more lay offs and down sizing to "pay" for the tax hike. most of you's will have to move back home and live in the basement with a single florescent light bulb.

 

[Zebo]

More Spidy

We spent the last ten years producing the illusion of prosperity through credit, which simply pulled forward final demand from tomorrow. But then tomorrow came and we did it again - and again...

If it was just government debt we might be able to get away with this. But it's not. The system is overstuffed with both government and private credit, and as such the "borrow more!" mantra simply won't work. It can't - there is no more credit capacity in the economy.

The 2003 mantra of "low rates and liar loans for everyone" allowed one more extension of idiocy in borrowing - one more "pulling forward" of demand. We doubled outstanding credit during the last decade - about 15% of our so-called "demand" each and every year was in fact false, created out of nothing more than a promise to pay tomorrow.

The "low interest rates" spurred borrowing last time - the reaction was immediate and powerful (if suicidal) - this time it has done nothing, as there is simply no more credit-carrying capacity in the economy.

So the government stepped in and replaced 11% of private final demand with more borrowing as the only able and willing borrower. But that cannot continue forever. Eventually those who lend us capital will discern that we're not going to pay, as that actual private final demand will not recover.

This is in fact precisely the same recognition that led to Greece's problems, and it will come here.

http://market-ticker.denninger.net/archives/2515-Crack-Smoking-Is-Getting-More-Popular.html

 

[Zebo]

lol I'll be glad to pay the extra 2% increase from 33% to 35% so those lowlife leech fucks get a 50% increase

Actually bro middle on up are the only ones who will pay the extra 50% in that bracket. The "low life leech fucks" already have it all expunged via deduction and/or EIC etc.

 

[Zebo]

They're not. They're just planning on guys like spidey actually believing them, that's all...

The notion that the Bush taxcuts did much more than enable america's wealthiest to own the govt is hogwash. The lapdogs got a few scraps from the richman's feast, and they're begging for more...

It's remarkable how cheaply people will sell out, how little money it takes to buy complicity... throw the bums a dime- they'll think you're a swell guy...

Little do they know they were thrown a rope.

The funny part is sheep like Spidey are still dreaming about his wife's state retirement in a nation that can't even produce enough to support its roads ATM. .Our pension funds are insolvent to the tune of 3-7 trillion depending who's counting.....our cities, counties, and states are in financial crisis and can't borrow due to horrendous CDS ratings.....and the tax receipts we generate are not even half the amount currently being spent by Washington - Dream on.

 

[dmcowen674]

My wife and I were doing the math the other night and if tax rates went back to 2000 rates we would be looking at $500 less per month once she finishes school and is working full time.

Ouch.

Our income would be ~$130,000 combined.

Not rolling in cash by any means.

The $500 is even after 15% of both our incomes going into 401k and health insurance for the whole family.

Holy Fuck!!! Not rolling in cash?????????????????????????

Typical punk ass Republicans out of touch with the real world

 

[Zebo]

LOLZ Dave. Two professionals not that hard (for now). Or a Democratic Citiy manager in Ca can make 6x that per annum.

 

[khon]

Good, they should expire. It will be the first significant step back towards fiscal responsibility.

 

[BoberFett]

Holy Fuck!!! Not rolling in cash?????????????????????????

Typical punk ass Republicans out of touch with the real world

You think a working couple making $130K is rolling in cash? You really are a minimum wage loser, aren't you?

 

[Zebo]

WTF? I work for almost minimum wage. I pay myself $10 an hour. Nothing wrong with that.

 

[StageLeft]

WTF? I work for almost minimum wage. I pay myself $10 an hour. Nothing wrong with that.

But that includes time you're fishing, right?

 

[Zebo]

nm

 

[BoberFett]

You are an evil corporate bastard.

 

[Zebo]

You are an evil corporate bastard.

Hey I'm better paid than steve jobs loser only makes $1.

 

[Bateluer]

Holy Fuck!!! Not rolling in cash?????????????????????????

Typical punk ass Republicans out of touch with the real world

You can't possibly be this clueless. In a lot of places, 130K is next to nothing. Picture gets worse when you factor in their mortgage, possible car payments, student loan repayment, and the fact that of that 130K, 50K is likely going to Federal/State/Local income taxes.

It boggles my mind that so many people seem perfectly willing to let their taxes jump by such large margins. We're not talking about 5 dollars a month here, guys. Taxes should be kept as low as possible, keeping spending under that figure. This is a concept our elected political heroes have a hard time grasping.

I pull in just under 40K a year, and of that, more than half goes to the government in some fashion. Money I could have spent on furniture for my residence, computer parts, landscaping, etc. Money, by the way, that doesn't get cycled back into the economic engine and instead disappears into the government dead weight.

 

[Zebo]

LOL been there done that. Fuck that shit.

 

[Doc Savage Fan]

Little do they know they were thrown a rope.

The funny part is sheep like Spidey are still dreaming about his wife's state retirement in a nation that can't even produce enough to support its roads ATM. .Our pension funds are insolvent to the tune of 3-7 trillion depending who's counting.....our cities, counties, and states are in financial crisis and can't borrow due to horrendous CDS ratings.....and the tax receipts we generate are not even half the amount currently being spent by Washington - Dream on.

Nice graph...wish it was current to show where we are now though.

 

[MotF Bane]

Bush tax cuts single handidly saved our economy. To let expire will kill us.

Keep telling yourself that one.

 

[MotF Bane]

Holy Fuck!!! Not rolling in cash?????????????????????????

Typical punk ass Republicans out of touch with the real world

Speaking of out of touch with the real world, it's not that much, especially not with two people working. I understand where you're coming from though - when you're asking "do you want fries with that?", 130k seems like a ton of money.

 

[IndyColtsFan]

Holy Fuck!!! Not rolling in cash?????????????????????????

Typical punk ass Republicans out of touch with the real world

God, you are an out-of-touch buffoon. Two people, working full time, making between $100K and $200K and you think they're "rolling in cash"? Do you think $130K in a place like New York or San Francisco is "rolling in cash" too? Hahahaha, what a clueless fuck.

 

[IndyColtsFan]

LOLZ Dave. Two professionals not that hard (for now). Or a Democratic Citiy manager in Ca can make 6x that per annum.

Dave conveniently overlooks stuff like that because, and I quote, it "pisses off Republicans."

 

[Zebo]

You know its bigger DOC w 3 trillion added by Obama. Not sure personal debt increased in this cumulative graph since banks stopped lending 800K to hairdressers to buy houses. Regardless shows prolific borrowing last few years and how we were "saved".

 

[IndyColtsFan]

Speaking of out of touch with the real world, it's not that much, especially not with two people working. I understand where you're coming from though - when you're asking "do you want fries with that?", 130k seems like a ton of money.

Hey now, don't insult the neighborhood Fast Food Preparation Engineer that way. Dave can only aspire to that position. :awe:

 

[ebaycj]

Watch what happens if congress doesn't extend it. I'm hoarding my money and not spending jack squat because of it. Also pulling my money out of the market this year specifically because of the increases.

While it may make sense to do a sell-then-rebuy-relatively-quickly on any existing long term investments to lock in the 15% long term gains rate, pulling out of the market completely is the wrong answer. Have fun not making any money.