Quote Originally Posted by rkelly110 View Post
So, for the past 3 years of the markets making record profits, where's the economy at?

Too much money going in the markets and not enough into the economy.

I'm sure 401 k holders would like a steady return instead of this up and down bull.
Business' now, are having a hard time borrowing, because of the housing bust.

I don't know why a retired person would have his 401 mostly in stocks. Normally
a kid who has a long time 'till retirement will have his mostly in stocks. A person
getting ready to retire should be in stable value plans and continue through
retirement.

Essentially betting on the market with your 401 before or during retirement is asking
for trouble. They only have themselves to blame.
Why someone would do it is not the issue. The markets are a predictor of the economy. It is not a direct correlation at the same time. The markets are far from making record profits, do you remember the 90's? I don't know where your new hatred of capital markets comes from, but businesses would rather hire then invest. Its just safer right now to have cash, or to have liquid assets in case of future distress. Your math about making 85% in the stock market is a little off. Its most likely around 6% or 7% averaged out. I don't know off the top of my head, but I don't think income the businesses make off of capital gains is taxed like when individuals do. I believe it is just added to the income statement, and taxed normally at the corporate tax rate. Accounting was never really all that interesting. People aren't hiring because they are worried. Raising the capital gains rate would do nothing but make people put cash in the mattress, and that never really works out that well.

When people say shit like raise the taxes on the wealthiest to 60% it makes me chuckle. Do you really think that all those people who were clever enough to build businesses and strike it rich are just going to let you take it from them? Talk about being naive. Those people will take their business and go to Switzerland, Malta, or another civilized country which isn't stupid enough to bite the hand that feeds them. And when their gone, who do you think is going to pay all the taxes for all those beloved entitlements.