Re: Dow drops 415 points today -- blood on the trading floor -- tomorrow the slide continues -- and the rightwingers are worried about Al Gore's electric bill

On Mar 8, 12:09 pm, "J.C." <jccspl...@xxxxxxxxxx> wrote:
<firelock...@xxxxxxxxxxx> wrote in message

news:1173371448.994608.184710@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx





On Mar 7, 7:06 pm, Jerry Baltimore <NO-SPAM-jerrybaltim...@xxxxxxx>
wrote:
In article <1173299687.312605.105...@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,

<firelock...@xxxxxxxxxxx> wrote:
On Mar 7, 7:46 am, Jerry Baltimore <NO-SPAM-jerrybaltim...@xxxxxxx>
wrote:
In article <1173199373.694060.306...@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,

<firelock...@xxxxxxxxxxx> wrote:
On Mar 5, 9:24 pm, Jerry Baltimore <NO-SPAM-jerrybaltim...@xxxxxxx>
wrote:
In article
<1173120474.388584.187...@xxxxxxxxxxxxxxxxxxxxxxxxxxx>,

<firelock...@xxxxxxxxxxx> wrote:
On Mar 2, 6:58 pm, Jerry Baltimore
<NO-SPAM-jerrybaltim...@xxxxxxx>
wrote:
In article
<1172846419.728893.290...@xxxxxxxxxxxxxxxxxxxxxxxxxxx>,

<firelock...@xxxxxxxxxxx> wrote:
On Mar 1, 10:31 am, Captain Compassion
<dar...@xxxxxxxxxxxxxxxxx>
wrote:
On Thu, 01 Mar 2007 09:36:04 -0500, fiend999

<dontspamfiend...@xxxxxxxxxxx> wrote:
In article
<zuAFh.53774$lb3.37...@xxxxxxxxxxxxxxxxxxxxxx>, J.C.
<jccspl...@xxxxxxxxxx> wrote:

"Jack A. Lopes" <h...@xxxxxxxxxxxxxxx> wrote in
message
news:280220071917437427%hunk@xxxxxxxxxxxxxxxxxx
In article
<7SfFh.62859$k82.1...@xxxxxxxxxxxxxxxxxxxxxx>,
J.C.
<jccspl...@xxxxxxxxxx> wrote:

"Jack A. Lopes" <h...@xxxxxxxxxxxxxxx> wrote in
message
news:270220071905507452%hunk@xxxxxxxxxxxxxxxxxx
In article
<5S2Fh.63182$M42.55...@xxxxxxxxxxxxxxxxxxxxxx>,
J.C.
<jccspl...@xxxxxxxxxx> wrote:

The sky is falling, the sky is falling. Run for
your
lives.
Hide in
caves.
Arm yourselves. Bury your money in the back
yard.

Me, I'm buying.

Good idea. With the republicans out of power,
things
will
surely
get
better in the next few years - especially once
the
failed
economic
policies of the current administration are
corrected.

What would one of those failed economic policies
be?

Cutting taxes mostly for the wealthy while
increasing
spending
like a
drunken sailor, all while having a very expensive
war isn't
such a
great idea.

Cutting taxes for anybody is good economic policy.

Cutting your income while your expenses are on the rise
is not
a
good
idea for anyone. Deal with the real world please.

Governments unlike individuals have the power to print
money.

More importantly, citizens have the power to respond to
different economic environments, and do so. Within certain
very broad limits citizens respond to lower taxes with
increased
taxable economic activity, as shown by the consistently
rising
tax revenues in the face of repeated tax cuts.

Well that is the theory anyway. Unfortunately it does not fit
our
current reality. Borrowed money is not real revenue.

Borrowed money has more to do with where the money
goes, not so much with where the money comes from - tax
reciepts are at record levels, unfortunately spending
is *also* at record levels, and little of the increased
spending is directly related to US domestic economic
activity.

In other words, our expenses are exceeding our income, and that
is not
sound economic policy.

True. However, increasing taxes will most likely
in the long run *decrease* income, for the same
reasons these levels of tax reductions have
increased income. Improvements to the balance
between expenses and income should first come
on the expenses side.

You are either missing the point or trying to hide it. Our current
administration is increasing spending and reducing income.

You're half right - they're increasing spending.
Now look at what the IRS says about what's happening
to income. Taxes were cut, yes - but money coming
in from taxes *rose*.

Cite? I seem to recall hearing that they changed the way they measure
that recently. Also, many more people are subject to the alternative
minimum tax than ever before, among other things. So I guess tax
revenues increased because the number of tax revenue sources have
actually increased.

Now, why do you think the number of tax revenue sources
might have increased?

And just how do you explain increasing deficits if there is supposedly
more revenue?

You ask me the question and explain it yourself, right here...

They are still outspending what they are taking in.

Pretty simple, isn't it?

Much earlier in this thread someone asked for an example of bad
economic policy. That is it. Spending more than you take in. Toss
around supply side theory all you want, but it isn't reality.

It is reality that spending more than you take in is
bad economic policy.

That's absolute bullshit!!! If everyone adhered to that silly notion, very
few people would own houses, cars or companies or even have jobs.

When someone buys a home or company they are
investing money now into something they hope will
increase in value in the future - and they usually
aren't doing so with payments in excess of their
current income.

It is
reality that SPENDING MORE THAN YOU CAN PAY BACK IS BAD ECONOMIC POLICY!

That's pretty much the situation we're talking about.
Expenses are above income with no real plan to
ever do anything about it - that isn't buying a house,
paying it off and then having a valuable house to live in.

--
Walt Smith
Firelock on DALNet

.

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