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.
King Banaian Radio Show!
From the Wall Street Business Network, Business1570 KYCR
Show on in 10 minutes
#kbrs will lead off with the employment report. Listen in on Business 1570! Call us at 651-289-4477 or reach us by twitter using the hashtag #kbrs. Thanks!
Keynes vs Hayek, Round 2, from John Papola and Russ Roberts, EconStories.
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.
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“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.”
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http://www.ritholtz.com/blog/2011/04/stockman-tells-the-hard-truth-on-taxes-spending/
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“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.”
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http://www.ritholtz.com/blog/2011/04/stockman-tells-the-hard-truth-on-taxes-spending/
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.
The New Face of 'Poverty'
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Expanding the Keystone pipeline
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Nation’s Mood at Lowest Level in Two Years, Poll Shows
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The Ratings Dust-up #kbrs
What questions would you ask Bernanke?
Put them in comments here, or send them to us on Twitter using the hashtag #kbrs. Thanks!
