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Old February 4th, 2018, 04:04 AM   #41
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Originally Posted by Ralph47 View Post
Huh? We had kids in the house for over 30 years! (with the eldest and youngest 12 years apart).

I can beat that comfortably. Our last two were nineteen years apart!
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Old February 6th, 2018, 02:35 AM   #42
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Originally Posted by Ralph47 View Post


They often put a LOT of money back into the company to expand, modernize, and hire to become even more competitive - hello?!
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The Dow Jones industrial average plunged 1,175 points Monday in an exceptionally volatile day for financial markets around the world, stirring concerns about the durability of the long-running stock gains. In the biggest global sell-off since 2016, financial markets from Asia to Europe to the United States were rocked primarily by concerns about inflation.
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Many analysts pointed to a seemingly unusual cause for the turbulence: rising wages.
Okay. Do you wish to start discussing economic prospects in an intelligent fashion or do you want to remain with colouring books and pictures?
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Old February 6th, 2018, 02:44 AM   #43
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Originally Posted by mcstites View Post
Corporation taxes are an expense item. There are a number of things they can do when the taxes (expenses) are lowered. They can increase the pay for employees as a number of corporations have done. They can lower the price of the products, which I believe most will end up doing because of competition. Or they can increase the profits for the stockholders or put the money back into the corporation.. I do not have a problem with any of those options because I believe that ultimately they will benefit the economy of the US and me.
The intrinsic stability of any economy is not based on soundbite politics. Trump may have pulled the rabbit from the hat with his blahddy blah tax cuts but the rabbit itsn't playing the game as international economies are not synchronised to the US political agenda.
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There was also focus on the 10-year Treasury bond, a closely watched harbinger of investor sentiment. The yield’s rise toward 3 percent is widely believed to be a marker for investors to eschew equities for the stability of bonds.
Bond yields are rising as the Federal Reserve trims its U.S. bond holdings. The U.S. Treasury is also having to borrow more money, partly because of the tax cuts, and issuing more debt tends to raise yields.
so.... you have your tax cuts and also your proposed massive spending agenda...what does it take to balance the equation?
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Old February 6th, 2018, 03:16 AM   #44
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Originally Posted by Fitz View Post

so.... you have your tax cuts and also your proposed massive spending agenda...what does it take to balance the equation?
A more robust economy which generates more income which results in more taxes. A lower tax rate on more income. That is the theory. It appears to be working, but time will tell whether it will be enough.

The unemployment rate has gone down. However, it has gone down for the wrong reason. The labor participation rate ha not gone up. That combination means that more people have quit looking for work. We need to get people back to work and quit talking about this meaningless unemployment rate.

Last edited by mcstites; February 6th, 2018 at 03:35 AM.
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Old February 6th, 2018, 05:24 AM   #45
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A more robust economy which generates more income which results in more taxes. A lower tax rate on more income.
What is your expectation of federal borrowing increasing by 84% over last year to boost the economy? Do you know what happened to Greece?

On your thoughs of tax cuts, there is pressure for wages to increase as you said however what are your thoughts on the consequences on disposable income if interest rates are expected to rise and inflation is expected to rise? Are tax cuts then nullified by the increased cost of living?
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Old February 6th, 2018, 05:35 AM   #46
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What is your expectation of federal borrowing increasing by 84% over last year to boost the economy? Do you know what happened to Greece?

On your thoughs of tax cuts, there is pressure for wages to increase as you said however what are your thoughts on the consequences on disposable income if interest rates are expected to rise and inflation is expected to rise? Are tax cuts then nullified by the increased cost of living?
I am concerned about the national debt. I am very happy that the democrats have finally decided it is a problem. It went up at an unprecedented rate during Obama administration and democrats claimed it was not a problem.

Increasing interest rates and inflation are also concerns. However, there is a big difference between having a concern and it actually happening. To keep those from happening is the function of feds chairman.
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Old February 6th, 2018, 05:40 AM   #47
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Increasing interest rates and inflation are also concerns. However, there is a big difference between having a concern and it actually happening. To keep those from happening is the function of feds chairman.
Fed has been able to keep rates low but that may not be an option I think 3 rates rises were planned but I am thinking that that is not going to be enough and they will be bigger than supposed.
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Old February 6th, 2018, 05:46 AM   #48
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Fed has been able to keep rates low but that may not be an option I think 3 rates rises were planned but I am thinking that that is not going to be enough and they will be bigger than supposed.
It was not a matter of being able to keep rats low. They intentionally artificially kept them low to stimulate the economy. They very likely will raise them now that the economy is doing better.
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Old February 6th, 2018, 05:54 AM   #49
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It was not a matter of being able to keep rats low. They intentionally artificially kept them low to stimulate the economy. They very likely will raise them now that the economy is doing better.
What I don't get is how getting 1/4% more interest PER YEAR at the bank causes people to dump stocks that are gaining 20-30% per year!!!

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Old February 6th, 2018, 06:15 AM   #50
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As you get older, you should start moving investments from the more volatile stock market to more sure stocks and bonds.

The problem is that with the stock market, if you take out fixed amounts each month and the stock market drops, you end up taking out a much higher percent of your investments each month. It is very easy to empty your portfolio very quickly, if you are not careful.
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Old February 6th, 2018, 06:51 AM   #51
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What I don't get is how getting 1/4% more interest PER YEAR at the bank causes people to dump stocks that are gaining 20-30% per year!!!
I guess we're still on colouring books....okay ABC Corp raises capital from the bank and pays 1% for that loan but the Fed ups the interest rates, this is then passed down to the commercial banks, the bank then increases the interest rate up to 2% thus ABC Corp has to double its repayments.
What are the effects?
It spends more of its' profits on servicing its debt.
It has less to invest.
Its profitability goes down.
Its dividend goes down.
Investors look for better yields and sell the stock.

Your 20-30% stock increases are notional based on the world market and investor confidence and market algorythms. The intrinsic worth of a company has little to do with stock market performance... look at Enron for example!
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Old February 6th, 2018, 08:24 AM   #52
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Originally Posted by mcstites View Post
As you get older, you should start moving investments from the more volatile stock market to more sure stocks and bonds.

The problem is that with the stock market, if you take out fixed amounts each month and the stock market drops, you end up taking out a much higher percent of your investments each month. It is very easy to empty your portfolio very quickly, if you are not careful.

I understand that philosophy, but if it has gone up tremendously (being way less conservative), one can easily afford a temporary big drop.
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Old February 6th, 2018, 03:57 PM   #53
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It was not a matter of being able to keep rats low.
Was that a Freudian slip?
.
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Old February 7th, 2018, 01:27 AM   #54
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I understand that philosophy, but if it has gone up tremendously (being way less conservative), one can easily afford a temporary big drop.
... and of course Trump has tweeted that...??... or has he just kept schtum....
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Old February 7th, 2018, 04:11 AM   #55
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Originally Posted by mcstites View Post
I should probably remind you at this point that I did not vote for Trump or Hilary and did not believe either are worthy of my vote for president. However, other than his language, I have no serious disagreement with his actions so far. If and when I see these "inevitable" disasters, I will react accordingly.

However, I see you are your old self. You continue to provide no meaningful dialog, just insults.
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