housing crisis is the straw that broke camel's back of decades insane credit leverage

[pico]

that is the most accurate explanation for this depression.

[wtf]

and add a potential capital gains tax!! perfect storm for market crash

[pavyracer]

and add a potential capital gains tax!! perfect storm for market crash

A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property.

If a market lost 50% of its value in the last 4 months this means the capital gains tax will not affect anyone except the 0.0001% of people that made money in the stock market the last 4 months.

[wtf]

but it spooks people from buying shares with the hope of gains, then have to pay an extra tax.

[pavyracer]

but it spooks people from buying shares with the hope of gains, then have to pay an extra tax.

Who do you want to pay the 10 trillion budget deficit of our economy? We can't be borrowing from China and Japan forever. At some point we have to balance the budget and the only way is to gradually increase the taxes on the people and companies that can afford to pay the bill.

[wtf]

i am not disagreeing with you. i am just saying i think that is the dynamic that is taking place now.

i think in the end this will yield a more healthy-stable economic environment.

[durito]

and add a potential capital gains tax!! perfect storm for market crash

This is dumb.



Pico is dead on.

[wtf]

wow, how can i argue with that logic. btw, your wrong.

[Data]

that is the most accurate explanation for this depression.

Probably not. Here is my short version.

Reacting to slow down in the 90s the Feds lowered the rates and the dotcom bubble was created. Just when it bursted, the WTC went down. There was a panic and the Feds opened the flood gates. That created the housing, the commodities (think oil) and the stock market bubbles which all bursted by now. This just had to happen.

Now, there is a bigger bubble known as the US economy built around nothing else but selling the debt. It is not the budget deficit but the trade deficit that as fueling ballooning net foreign debt that is the most worrisome. The whole world has been financing that fourth bubble. Japan was trying to ignite their own economy but it all went into carry trade. China was feeding the US consumers at the expense of their own people by having the low rembini rates and now sits on enormous dollar-filled coffins. The Saudis and other oil producers exchanged their oil for the mix of greenbucks, treasuries and stocks. The EU banks bought the shitloads of the finest US invention called CDOs and that sealed their fate. As a result, nobody wants the fourth bubble burst but will it sustain?

[pico]

Probably not. Here is my short version.

Reacting to slow down in the 90s the Feds lowered the rates and the dotcom bubble was created. Just when it bursted, the WTC went down. There was a panic and the Feds opened the flood gates. That created the housing, the commodities (think oil) and the stock market bubbles which all bursted by now. This just had to happen.

Now, there is a bigger bubble known as the US economy built around nothing else but selling the debt. It is not the budget deficit but the trade deficit that as fueling ballooning net foreign debt that is the most worrisome. The whole world has been financing that fourth bubble. Japan was trying to ignite their own economy but it all went into carry trade. China was feeding the US consumers at the expense of their own people by having the low rembini rates and now sits on enormous dollar-filled coffins. The Saudis and other oil producers exchanged their oil for the mix of greenbucks, treasuries and stocks. The EU banks bought the shitloads of the finest US invention called CDOs and that sealed their fate. As a result, nobody wants the fourth bubble burst but will it sustain?

what are you suggesting? buy gold bars and some land?

[wtf]

i dont understand this gold thing, if it supposedly goes to 1000-2000 someone has to buy it? who would pay that much for gold?

UNLESS the US dollar crashes, then that might happen.

current exchange rates, impossible.

[Data]

what are you suggesting? buy gold bars and some land?

Yes, I see a huge potential in physical gold. The deflation will slow down and the hyperinflation will occur.

For a very long term, land, with an access to reliable fresh water source, is a good investment. And do not forget to buy guns to make sure you keep these two. Unfortunately, I am not joking.

[wtf]

what a great quality of life when you have to pack a gun to protect your property at all times.

want no part of that life.

will stay here in asia where people are civilized and no guns.