What I am hearing in the financial business...

Discussion in 'Politics' started by ReformedBaptist, Nov 4, 2008.

  1. ReformedBaptist

    ReformedBaptist
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    Just a tiny sample of what I am hearing if Obama is elected from the financial sector...(I work with financial advisors from around the country of the nations more wealthy..)

    1. Small business owners have already delayed their expansion plans until after the election. If Obama is elected they will not open new business and will lay off a portion of their staff siting higher tax rates and higher cost of insurance as the main reasons.

    2. Wealthy investors plan to reduce their exposure to appreciatiing asset classes and moving to more income/fix-income investments that offer a steady income but little captial gains. Reason? Higher captial gains rates. Their income tax rates are more managable than income + captial gains.

    If this is a small indication what will happen...I predict in an Obama white house we will see employment exceed the 8% prediction already being discussed. I think in the short term you will likely see another sell-off in the stock market and probably won't see the DOW rise to 11,000 like it did in the past.

    Production will slow down in America as those who have the money to buy won't be buying as much.
     
  2. Crabtownboy

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    Most have had to delay plans for several reasons, the primary one being that lines of credit have been frozen by the banks and no one is getting loans. Can't blame that on Obama, it happened under Bush's watch.

    That has also already began and not just recently with the prudent and the forward looking. I am not wealthy, but do have investments. Over a year ago I looked over the economy and said, "This can't keep up." So, I moved a large majority of my investments into municipal bonds.

    I believe you meant unemployment exceed 8%. That may be true, but not because of Obama. Bush has already set the wheels in motion for this to happen.

    Production has already slowed and will continue to slow. Again because of the policies of the last 8 years for which we are now paying and will continue to pay for another year or more.
     
  3. ReformedBaptist

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    You missed the point my friend. These are changes that haven't taken place yet, in the tiny sample of real people, real business, that I am in contact with. And yes I meant unemployment.

    So, while your points are valid due to a credit crisis, we are not in a credit crisis because of Bush policy. We are in a credit crisis because of a democratic congress and house. When they blocked the regulation efforts of republicans for Fannie and Freddie and left the door open for impropriety and forced banks to lend to minorities and low-income earners, they created the credit problem.

    Do you know any bankers? I do. They HAD to lend money to people they would have never lent money to at all....but the push by Freddie and Fannie forced their hands.
     
  4. Thinkingstuff

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    That is correct an then the House forced banks that were large and still performing well to take the bail out keeping them under federal jurisdiction. We are in dire straits my friend.
     
  5. just-want-peace

    just-want-peace
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    All you fawning liberals can shift blame all you like, but the time is coming, likely this election, when you will get exactly what you have been wanting - a D controlled govt!!!

    Will you continue to blame "BUSH" for the next ? years as taxes are skyrocketing, unemployment grows, freedoms are chipped (or bulldozed) away, morality becomes a "laughing-stock"?

    Don't come crying on the conservative shoulders when society nose-dives into moral oblivion.

    Remember you had a chance as a Christian (?) to vote for a more moral America, but you chose the liberal path!

    I firmly believe that America is in a crossroad of moral decision with this election, and if America chooses to vote for the liberal's version of morality, God will let us have what "we asked for"; to our detriment.

    The economy IS important, but the nation's morality is FAR, FAR more important, and that is being flushed down the toilet.

    In fact there are many important issues, but none, NONE, IMHO, exceed the moral depravity that looms if the liberals get total power.

    Just my $.02 worth!!!
     
  6. Pastor Larry

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    All of this is true, and very little of it has anything to do with Bush or Obama. The exception is the raising of rates on capital gains which will tie up money probably and change the kind of investments the rich make.

    But the economy is cyclical ... always has been ... always will be.

    If you look at P/E's over the last decade, they have been way to high, and that is not good investing. The housing market was way overpriced due to easy cheap credit. Unemployment has been historically low for the last decade. Even now, by historic standards, unemployment is low, which doesn't help the unemployed, but helps us see the economy in bigger pictures.

    The market will recover and it won't have anything to do with Obama or McCain.

    Remember, the president has little to do with it. He gets too much credit when it is good and too much blame when it is bad. When we were in a recession during the election of 92 (but later found out it had recovered prior to the vote). We were in a recession in the election of 2000, and we are in one now. The economy does this ... It is self-correcting for the most part.
     
  7. JustChristian

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    What's their prediction for a McCain Presidency?
     
  8. JustChristian

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    The House didn't do that. The dept. of the Treasury did that (under Bush).
     
  9. ReformedBaptist

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    IF McCain does what we think he will do, he will lower the marginal rate and cut taxes on businesses. This would spurn business and create jobs. With the credit markets already losening up a bit you should see some business growth. This will not stop the declines already in progress, but it will keep them from sliding further.
     
  10. Enoch

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    I agree with this thinking and for this reason alone it is enough to vote/hope for a McCain win. Thanks for posting this information!
     
  11. Crabtownboy

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    Just curious, not arguing. If this is true, why didn't the Bush tax cuts to business bring about long-term prosperity and great business conditions?
     
  12. ReformedBaptist

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    They did, actually. America expereience economic growth from 2001 - 2003-4. Income levels were outpacing inflation rates, et. Productivity was up. If you recall, Bush got the white hosue in 2004, but republicans lost the house and senate. Furthermore, republicans went out of control on spending, eroding alot of the gains made with the tax cuts and lower interest rates.

    I hope McCain is elected president and stops government spending. This will spurn true econmic growth couple with the tax relief...which I especially hope goes to the wealthy....yes, please tax the rich less. Thank you. If I didn't have a rich boss I wouldn't have a job. Tax him less please so he can expand his business, hire more people, and add to my job security. I don't want his taxes increased to make him think about preserving corporate profits by cutting my wage or my job. Honestly, I can't make it on Obama's $500 a year.

    If Obama gets elected I think you will still see job growth...it will just come from govenment programs that tax-payers pay for.

    RB
     
  13. just-want-peace

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    Emphasis mine

    Which = higher taxes on the currently employed & businesses, which = fewer jobs because of higher taxes and less spendable income for those that are STILL employed, which = still higher taxes to replace that lost by losing salaried employees, which = ------ well you get the idea.

    Just how stupid can the general public be? (Don't ask!) This election may answer that question.
     

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