Huh? We had kids in the house for over 30 years! (with the eldest and youngest 12 years apart). :smug:
I can beat that comfortably. Our last two were nineteen years apart!
I can beat that comfortably. Our last two were nineteen years apart!
They often put a LOT of money back into the company to expand, modernize, and hire to become even more competitive - hello?! :smug:
Okay. Do you wish to start discussing economic prospects in an intelligent fashion or do you want to remain with colouring books and pictures?
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.
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.
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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.
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.
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!!!
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.
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 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!
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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