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Creeping toward nationalization when the government should just get the pain over with quickly - it will be cheaper and more efficient. Of course, management and executives want to cling to their jobs, salaries and bonuses, so they're screaming 'please!! more time!!! the housing market will recover and we'll be solvent yet again!!!" Riiiight. Roubini is just stating the facts.
cgtrader, what is it that makes you sometimes think he would have been bought and paid for by bankers?
He is arguing for nationalization of the banks that are insolvent. That is absolutely against those banks interest. ???
Fed launches new $200B consumer credit program http://news.yahoo.com/s/ap/20090303/ap_on_bi_ge/fed_consumer_credit
Look....Let's erase the idea of complexity.... Let's say there is an economy.... The economy at first had an asset value of $70 Trillion.... Later, certain businesses caused financial havoc such that the asset value in the economy dropped over $30 Trillion.... So what does this mean about prices overall ? Can cars still be sold for an average of $35,000 ? The way it was in the previous economy ? Can an education be sold for $100,000....the way it was in the previous economy ? Can a house which sold for $280,000 in the previous economy still sell for the same amount ? Of course not.... The losses are real....they have been incurred....and there is no way to immediately replace what was lost.... This could take 20+ years....to get back to the previous prices.... This is not rocket science.... ................................................................................... What would help the fastest ? A 10% consumption tax.... Valuations would recover much faster ....than what has been proposed.... ......................................................................... And in turn ....what would make recovery even slower ? Making government bigger .....
"A 10% consumption tax.... Valuations would recover much faster ....than what has been proposed" oh, that's a great fucking idea let's recycle exsisting savings back into pre-tax income savings that's already been mauled by income tax, property tax, exise tax, state tax, bear markets, inflation we get people to save the same way we get kids to study math and science 'kick the shit out of anyone who already did'
Depends on how one defines consumption tax.... A consumption tax would be a tax on purchased items.... By the way....the US already has a progressive consumption tax.... When one buys a tube of toothpaste for $1.00... One pays $1.10 at a 10% tax rate.... One pays $1.20 at a 20% tax rate... One pays $1.34 at a 34% tax rate... A 10% consumption tax means that everyone pays $1.10... ........................................................................... Also items such as stocks, bonds, cds, are not taxed...They are not classified as a consumable... Also companies from all over the world would want to relocate in a tax friendly stable country... Also the elimination of the IRS would instill the will to work by everyone....and the sense of freedom which is what the USA is all about... ......................................................... Aftertax, pretax dollars still buy toothpaste at some progressive rate currently....This would not be relevent.... The consumption tax is a stable tax that everyone has to pay....and is broadly distributed.... ........................................................ The bottom line is that small business creates jobs....and there is no other tax system that can come remotely close to the business environment that a consumption tax can create.... The progressive structure negates fairness and growth....and anyone who favors a progressive tax....favors having a far lessor and inferior economy that a 10% consumption tax would produce....If there is a lot bigger economy....then there is more to pass around....If there is a self eating , cancerous "progessive tax" economy....there is a lot less wealth from which to draw upon.... This is the surest path to re-establishing a manufacturing base in the US....If the progressive tax is allowed to stay in place or increase....then this could place much needed growth far far into the future....if at all.... There is a big big difference in "lawyer" made economic policy....and a "real entrepreneur" made economic policy.... The US needs to export its lawyers to countries that it wants to take down....