King Banaian Radio Show!

From the Wall Street Business Network, Business1570 KYCR

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A rare day

On #kbrs, we are live at the Eagan studio this week.  Economic news of the week and analysis for you on Business 1570.  Call us at 651-289-4477.  

And we find out Rob is a real live person.

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printmoneyalot asked: King: could you comment on what David Stockman is saying about the capital gains rate in this article. It sounds like it entourages too much speculation and buyouts and not enough investment. Thanks.


“The culprit here was the combination of ultralow rates of interest at the Federal Reserve and ultralow rates of taxation on capital gains. The former destroyed the nation’s capital markets, fueling huge growth in household and business debt, serial asset bubbles and endless leveraged speculation in equities, commodities, currencies and other assets.

At the same time, the nearly untaxed windfall gains accrued to pure financial speculators, not the backyard inventors envisioned by the Republican-inspired capital-gains tax revolution of 1978. And they happened in an environment of essentially zero inflation, the opposite of the double-digit inflation that justified a lower tax rate on capital gains back then — but which is now simply an obsolete tax subsidy to the rich.”


I think this is a good point.  Capital gains rates though are for investments held more than a year, so it’s still relatively patient capital that gained the preferential tax treatment.  The bubble from Fed policy?  I completely agree.

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What questions would you ask Bernanke? #kbrs

So what would you ask him? I would ask, how about a do-over for Bear Stearns? Want one?
From NARNfan:
You have taken credit for pumping the stock market up. Why not take some credit for global commodity price increases?
From NARNfan:
Why should anything be Too Big To Fail?