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Stock Market Crash

Not a fan of Krugman's deficit stuff at all. Seems his answer to everything is just print more money. Nevermind that Social Security and Medicare are basically insolvent on their current paths before all of this
 
Everyone except moderate Dems are for just printing more money.
 
So what should the government do in the midst of an economic meltdown if not deficit spend?

Raise taxes?

Cut spending?

Don’t think so.
 
Right now no we should spend. During good times should we cut taxes, spend crazy amounts on our military, promise that nobodys social security or medicare will never be touched, no. The debt will cause our next recession after this one, when our credit gets downgraded again
 
Agree that during good times we should do pretty much the opposite of the Trumpublican TCJA.
 
ConnorEl said:
Peacocks and Vultures Are Circling the Deficit: The only fiscal thing to fear is deficit fear itself.

Krugman piece, seems mostly correct, IMO. Read in private browsing mode if no subscription.


Who Pays For This?

Interesting piece Krugman references.
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Thanks for posting. However the second article just glosses over the fact that KEEPING TAXES HIGH after WWII was the main reason the deficit eventually evened out. That's really all the article needed to say, but I don't think that was the author's point.

Do you really think that's going to happen? Our population, particularly the boomers, think it is their god given right to pay Revolutionary War Era taxes while also receiving unlimited government assistance if anything out of the ordinary happens. They've paid minimal taxes their whole life and run up trillions in deficits.

I just don't see rich and wealthy Americans accepting a 40-50% income tax rate for 10-20 years, which would still probably not be enough.

From top to bottom we are a greedy society, who takes little to no responsibility for anything. Rome is falling guys. It may take 50 years but our best days are behind us unless something drastic happens. If I knew how to short America in the long term, I would.
 
Without rereading, I think the author does talk about the importance of higher or raising taxes, both historically and in the future.


I agree, however, that it’s tough to imagine our fractured and hyperpartisan governance being capable of doing the right things in a sustained manner. Especially with the Republican pathology/mythology of government/taxes “bad” solidly established. So yeah, past success is not a guarantee of future success. He’s probably overly optimistic.
 
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BillBrasky said:
Thanks for posting. However the second article just glosses over the fact that KEEPING TAXES HIGH after WWII was the main reason the deficit eventually evened out. That's really all the article needed to say, but I don't think that was the author's point.

Do you really think that's going to happen? Our population, particularly the boomers, think it is their god given right to pay Revolutionary War Era taxes while also receiving unlimited government assistance if anything out of the ordinary happens. They've paid minimal taxes their whole life and run up trillions in deficits.

I just don't see rich and wealthy Americans accepting a 40-50% income tax rate for 10-20 years, which would still probably not be enough.

From top to bottom we are a greedy society, who takes little to no responsibility for anything. Rome is falling guys. It may take 50 years but our best days are behind us unless something drastic happens. If I knew how to short America in the long term, I would.
Click to expand...

It will have to be a combination of tax increases, spending cuts, plus us growing our way out of the problem.

A couple things that would make a difference right away on the national debt would be...1. raising the capital gains tax on anyone with a significant amount of assets 2. freezing defense spending at current levels 3. tort reforms & letting medicare negotiate for drug prices.

We need much more than that but if we get a dem president & congress i think those are things that could be passed right away.
 
Want ya to guess when I covered my short
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Its completely decoupled from reality. Probably with the idea that most major companies are no longer allowed to fail so there is pretty much zero risk so just keep making that money not tied to anything.
 
Louis Gossett Jr said:
Its completely decoupled from reality. Probably with the idea that most major companies are no longer allowed to fail so there is pretty much zero risk so just keep making that money not tied to anything.
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Well said. The stock market is all about gambling on companies who will get bailed out no matter what.
 
once again, the market is a discounting mechanism- not to say it's not overly optimistic currently, but if promising treatments are potentially on the near term horizon and a vaccine is expected to arrive sometime in 2021, is there not reason for economic optimism looking 18-24 months into the future?
 
Louis Gossett Jr said:
Its completely decoupled from reality. Probably with the idea that most major companies are no longer allowed to fail so there is pretty much zero risk so just keep making that money not tied to anything.
Click to expand...

PhDeac said:
Well said. The stock market is all about gambling on companies who will get bailed out no matter what.
Click to expand...

Exactly
 
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