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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: DD™ who wrote (5566)	9/18/2010 9:53:04 PM
From: Investor2	Read Replies (2) \| Respond to of 10065

Thanks!! I2

To: DD™ who wrote (5566)	9/19/2010 9:52:06 AM
From: Boca_PETE	1 Recommendation Read Replies (1) \| Respond to of 10065

This weekend I saw the blunt straight shooting former President Reagan's budget director (1981-1985), David Stockman, interviewed on the Tom Sullivan Program (Fox Business Channel). I remember him being ushered out of the Reagan Administration for reading the economic reality riot act to Reagan. His current views were as follows: * Today, Government is spending 24% of GDP and taking in tax revenue amounting to 18% of GDP. We make up the difference by by borrowing and increasing the Gross Public Debt. This is a dangerous unsustainable policy. * In the early 2000's, the economy caught up with a temporary illusion of good times during the 1990's. The income and bonuses based on that illusion are all gone now and won't come back. * While the current economy has had a tepid recovery, that recovery has gone about as far as it can without addressing the serious imbalance in government spending vs. government tax revenue. He recommended STARTING by letting the Bush Era tax rates expire ENTIRELY. He asserted entitlements MUST BE cut. (Gee- they just rammed through a big one - "ObamaCare". Then there was the unfunded Part-D Medicare Drug Program passed in the early 2000's. Then there's the suggested ways to cut medicare costs ignored by ObamaCare - Capping Liability Awards, Interstate competitions amongst insurance companies, raising co-pay amounts to reduce "recreational doctor visits"....). Then there's the idea of phasing in a higher retirement age for Social Security given that we all live longer - that may change with the ObamaCare Death Panels. The brash former budget director has aged and put on some weight over the years. It was good to hear his blunt take on today's economic situation. Perhaps Elaine's forecast will come true, but I have very low stock market expectations these days given the unprecedented policies and views about American exceptionalism of the current administration. I don't remember a time when I felt the government was intentionally trying to destroy the capitalist system and move America toward being a diminished subservient role in a World economy and government - all financed by an evil greedy old man born in communist Hungary. Moreover, even if the Bush Era Tax Rate Scheme is extended, I don't expect much positive impact because the rates have been in effect during all of our recent economic termoil. In my mind, removing them partly or completely is just a matter of degree of negative impact on the current economy. Cutting government spending will amount to reducing fiscal stimulus into the economy - another negative hit. JMHO P