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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (108127)	1/25/2012 3:51:10 PM
From: John Vosilla	Read Replies (1) \| Respond to of 149317

Tax the rich, provide a huge infrastructure stimulus package and rebuild the middle class. That should do it. The top 400 richest people having more wealth than the bottom 150 million should say it all. How did we let that happen? You would think most people no matter their background could at least agree on this..

To: koan who wrote (108127)	1/25/2012 7:01:23 PM
From: RetiredNow	Read Replies (1) \| Respond to of 149317

I'm all for infrastructure spending and taxing the rich. However, taxation needs to happen before we start spending more. Look, I have post graduate degrees in finance and account and economics. Anyone who has studied finance can tell you that debt is a good thing...up to a point. In any entity, you can lever up to provide increased profits and return on investment up to a point. Then there is a tipping point at which each new dollar of debt has less and less benefit. The US has long past the point at which the new debt is adding value. I wish I had the article in hand to show you, but I recently read an economic study that said the value of each new dollar in debt now has provides less than a dollar in stimulative value. It means that you could literally throw money out of helicopters and get more stimulative value than what our government is spending our money on. That's bad. Anyway, it is what it is. I know that talking to folks about deficits and debt approaches the same heat level as talking about religion and no one gets convinced to change their opinions. So there's no point to it anymore. The bottom line is that things are going to continue to get worse until we as a nation DELEVER. I guarantee you that we will delever. The only question is will we do it in an organized voluntary way, or will market forces take the decision out of our hands and bring with it abrupt and disastrous consequences. I believe the latter is more likely.