Comments on: Burning Money

By: T-Bone

T-Bone — Thu, 22 Jan 2009 11:31:53 +0000

I don’t think people are lacking the incentives to produce more and earn more. They are lacking the opportunities to do so. I think that is a result of the reduced demand from middle and lower income classes. As they’ve dug into savings over the years to finance their demand, they’ve started to tap out recently especially in the face of the housing bubble bust which may have been propping the economy up.

I don’t think a marginal tax rate decrease would help as much as a tax credit, if those are the two choices. It would, however, contribute slightly more to income inequality, which I think is part of what has contributed to this economic situation.

By: Cannon

Cannon — Wed, 21 Jan 2009 18:40:31 +0000

I may be a cynic, but when has government ever deployed resources in an efficient, effective manner? Insuring the viability of the financial system is something I buy into, because people more well versed in economics than myself believe it to be true. More importantly however, it just makes sense if one believes that a functioning financial system is vital to the entire economy.

With that said, nothing I’ve heard in regard to new potential stimulus sounds good except for tax cuts. The slashing of tax rates (or elimination of certain taxes altogether) involves a minimal amount of government involvement. Let market participants deploy the resources as they see fit. It would surely be a better scenario than having politicians decide what is best.

By: Bob McTeer

Bob McTeer — Tue, 20 Jan 2009 21:51:47 +0000

Spoonmaster:

Will wonders never cease. Thanks for calling it to my attention. Nobody tells me anything.

Bob

By: spoonmaster

spoonmaster — Tue, 20 Jan 2009 20:50:43 +0000

Volcker Calls for New Look at Fair-Value Rules

you got a MtM friend or a blog fan of sorts, Bob.