reposted from last thread:

Zombie Alert : GM loses 9.6B fourth quarter.

"If not for the $4 billion federal loan it received in the quarter's closing days, GM's cash level would have fallen below the $11 billion to $14 billion in cash the company has said it needs to continue operations."

CNNMoney.com: 404 Page Not Found ...sion=2009022607

CR yesterday I showed your housing graphs to a family member. Being concise yet to the point...nothing beats you. Thank you again for all this.

Raise taxes on the rich. Tax income goes down as business lays high paid employees to off balance expenses. Some business fail and further push unemployment numbers. Help grease the downward spiral. Dumb to Dumber.

“While the vast majority of U.S. banking organizations have capital in excess of the amounts required to be considered well capitalized, the uncertain economic environment has eroded confidence in the amount and quality of capital held by some,” the Treasury said, announcing guidelines for new bank reviews.

Let's work through this starting with the last paragraph. The new Administration has been in office only a bit more than a month, and the double-speak has already started to wear thin. If anyone really believed these banks' capital was adequate, would we have this never-ending parade of special facilities, rate cuts to near zero levels, and programs to rescue stressed borrowers

Is the Treasury Planning on a Near Term Recovery in Bank Stocks? « naked capitalism

Help grease the downward spiral. Dumb to Dumber.
Economist Moe Howard 3SU

US is just about out of options. 300 million painted into a corner. No good options, only less worse

Any body know what the payout for
claims is? Where does the money
to cover these claims come from?

who's here?

Unless (and this is my suspicion) the Labor Dept has changed its definitions of what comprises the workforce.

Then, good luck with a real definition...
kurtyboy

Receiving UE was much simpler back then also. Today they fight to not pay you. I read 1/3rd of those fired, laid off actually get benefit

Present

Economist Moe Howard 3SUwrites:
"Raise taxes on the rich. . . . Dumb to Dumber."

Fair enough.  It might be dumb letting the Bush tax cuts expires after 2010.  Might be.

However, I think Buffett's take on this -- that he pays a lower tax rate than his secretary, and, uh, maybe that should change -- will win out in this political climate.

Furthermore, I'm OK with what is described below.  And I don't see it killing the economy -- quite the contrary.
"If there is one tax loophole that looks dead in the water, it's the law that lets hedge fund and private equity managers pay a 15-percent capital-gains rate on the multimillion-dollar fees they collect -- substantially less than the top income tax rates paid by their secretaries, chauffeurs, and the pilots of their private jets. On the surface, the stars are aligned. There is a newly elected Democrat in the White House who is desperate to raise revenues. Killing this tax break would raise $31 billion over five yea

Lot of chartists here. Give the formula and I'll implement it in silico and we'll all get rich!

"Where does the money
to cover these claims come from?"

I think when times are good the excess goes to the government. Then when a heavy draw come like now they barrow or grant money back to the unemployment fund.

Bloomberg
Obama's Budget Proposes Up to $750 Billion in New Financial Industry Aid

what is brilliant about this is that by giving it a "7" handle half the public and most of the media will confuse this with the original $700bn TARP

(note the link is slow to load)

MTHood,

My opinion is this is miss understood. Buffet pays less because he is an investor not an employee, creating his own job and how many others. Second Buffet has incentive to push his money back into profitable and economy expanding ventures, providing more jobs. He stops investing then he slows moneys velocity ending in no growth and no jobs. Jane at her desk is not really fueling growth. Jane can do the same as Buffet with her investments if she is responsible it will work for her, just on a different scale.

However, I think Buffett's take on this -- that he pays a lower tax rate than his secretary, and, uh, maybe that should change
MTHood | 02.26.09 - 9:08 am | #

be careful with 'stories" like that.  they might be much different that what they appear.  what if all of Buffet's income was capital gains and no salary income and the secratary had all salary income?  there could be very good reasons to tax cap gains less than salary.  what if Buffet had losses or investment tax credits that offset his total tax burden?  there can be very good long term reasons to give incentive to invest in the economy and give credit for losses.  Don't get me wrong, I think there is a ton of room for improvement in the tax code, but I generally find the quick little anecdotes that sound so cute (like the buffet story) generally don't take the big picture into account.  it's more complicated that a cute story.

TRAIN WRECK
Black Star Ranch | 02.26.09 - 9:20 am | #

Obama was too happy the other night. I suspect he will have the greatest crisis since Lincoln. I am going to say a prayer for him and this is from a wayward non believing catholic.

Buffet has incentive to push his money back into profitable and economy expanding ventures, providing more jobs.
Economist Moe Howard 3SU | 02.26.09 - 9:20 am | #
  Do you have any idea how ridiculous this sounds?

I would argue that it's a cost to the employees. The employer remits the money, but it's a direct cost of having employees - part of benefits. It's money that would otherwise be available as wages/salaries.
Comrade Terry

I agree! Employees are duped into thinking SS is half paid by the employer also. Paper crush based on wages is not Employer contribution.

Do you have any idea how ridiculous this sounds?

1 currency almost [yogi]

Not in the least. Buffet has enough money and has for a long time. What if he stopped at a billion? He has created lots of jobs, taxes and other investors income. Money velocity is important.

BRS,

No, but I think wage earners would be a bit more attentive and upset with the direction our county has come to. They may also see the wreck now amplifying before their eyes. The Free Lunch is about over.

Do you think the tax the rich will inspire more move out of the country for manufacturing, More black market, how about bartering systems like we had in the 80's recession?