The “obvious” solution to get some movement in our economy would of course be to continue to buy more treasuries. Economists and strategists at Credit Suisse Group AG said on a Sept. 16th report, that the Fed will likely announce that it’s buying $400 billion in treasuries. Bernanke will have the ultimate say but what we do know is that they are out of ammo. Well whatever the announcement is, the anticipation of more stimulus is slightly pushing stocks upwards. However, it teeters on any potential adverse news coming from Europe and within our own borders. Over the past few years, the stock market has rarely gone up on fundamentally sound news, rather it has primarily rose on QE news and anticipation for growth.
Government’s recent energy scandal with Solyndra is a prime example of interested parties manipulating politicians to screw the taxpayers. These energy companies donate money to get officials elected, the elected officials return the favor by directing millions of dollars back to these companies with taxpayer dollars. In 2009, Solyndra secured 535 million dollars in loans from the taxpayer. On August 31, 2011, the company announced its plans to file for bankruptcy. Not to mention was the stimulus a failure, 1,100 people have lost their jobs due to this massive failure. Solyndra wasn’t the only green energy company that tanked after receiving money from the stimulus, 4 other companies also received money to unfairly compete in the market place, however, Solyndra was the largest lose that was taken. Solar energy, healthcare, and college education have been increasing while virtually everything else have been decreasing in costs. The common denominator in these programs is the government involvement and their wasteful ways. The inefficiencies in our government and the wasteful spending that occurs cannot be understated. But who cares if you are the politician wasting taxpayers money–as long as it helps you get reelected.
Hopefully things like this will begin to start waking up Americans that the government is not fit to be taking our hard earned money in the form of aggressive taxes. It’s been all over the news lately that wealthy individuals are coming out and encouraging other top earning individuals to pay more in taxes and fulfill their duty to their country. The end result unfortunately occurs with our money being put in the hands of people who have selfish intentions for their own personal gain. People have the choice to invest and stimulate the economy with their own personal spending habits and don’t need the government going around losing money left and right and destroying everything that this country was once prided in. Buffet has been a tool for the liberal agenda lately encouraging high income earning individuals to pay “their fair share.” The last decade has been known as a time where this country has had relatively low tax rates compared to many of the years prior. People act as if the government doing this is some sort of experiment to see if people will create jobs with money if they allow the taxpayers to hold on to it. But it’s ridiculous for our leaders to think that they control what is ours and what should be done with the money that we work so hard to produce!!! The more people who produce get attacked, the larger the revolt is going to be. It’s only American to hate paying taxes.
The Federal Reserve quarterly report on financials confirms that companies are continuing to hold on to their cash reserves which is adding to the weakening condition of the country. We like to think they are starving the beast! Not that CrushTheStreet.com wants to see continuing havoc on the economy, but we would like to see a breakdown in the system that is holding this country back. Cash and other liquid assets rose to 2.047 trillion which is at its highest level since 1945. This is a definite sign that businesses are still very unsure and unwilling to invest and attempt to invest in growth. It is very likely that the government will be instituting subsidies and tax credits, and other incentives to get these companies to spend their money in circumstances in situations where they otherwise would of held on to their reserves.
On our front page at CrushTheStreet.com our latest featured video is an interview with Congressman John Fleming in which he goes over the “3 trillion” in savings proposed by the President. A startling fact that wasn’t even the emphasis of the interview was that currently, 47% of households don’t pay any income tax as opposed to the 1980s where it was closer to 17%. It really goes to show the shifts in who is carrying the burden of the economy and that class warfare is going to only continue to grow.
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