Are you kidding me? The credit freeze has a lot to do with Obama. Not directly, but based upon the uncertainty of an Obama presidency. Banks don’t lend money during uncertain times., Obama has expressed less than opaque explanations of his own tax plan. For instance, sometimes $250K is Obama’s magic tax number, sometimes its $200K, and lately Biden is fronting $150K. Further, Obama isn’t exactly cogent when it comes to how taxes are calculated. In explaining how 95% of Americans are going to get a tax cut when only 70% of Americans pay taxes, Obama pointed that the remaining 25% still pay payroll taxes, and the tax cut comes from there. Those who pay payroll taxes, but not income taxes (the 25%), are only paying their FICA; i.e. Social Security and Medicare. Essentially, the tax credit he wants to give the 25% comes out of Social Security and Medicare pay ins. So these folks won’t even be paying in the full amounts to Social Security and Medicare. But they get the full amount out when they retire. This is assuming its still around, after all, if not everyone is paying into the system, it won’t have enough to fund it long term, or I’ll have to pay more to cover those not paying in anymore. Further, look at capital gains taxes. Until banks now how much a business will be paying in capital gains taxes, it makes it difficult to value the business. And unless you can value the business, you can’t be sure that the business is healthy enough to pay back the loan. And if you can’t figure that out you aren’t going to lend them money. Obama has never been clear what he would do to capital gains taxes. One of his foremost economic advisers, and possible Treasury Secretary, George Soros, wants to fully tax money that multinational companies make overseas. Currently, a company like Coca-Cola, when it sells a Coke in China, which it makes in China, pays taxes on that to the Chinese government, although the profit from that sale is reflected in their overall, U.S. profit. The United States typically negotiates an overall deal with the company and country, so that Coca-Cola isn’t double taxed for profits originated and made overseas. Soros wants to end this, and enlist double-taxation of U.S. multinational companies. Not only would this lead to a flight of multinational corporations from the U.S., it would lead to declining profits as companies pay increased taxes in the U.S. And until you know what is going to happen, you aren’t going to lend money to the company. Essentially, I think credit markets are frozen because of lending institutions are in a “wait and see” approach. Until people know what Obama is going to do, no one is willing to run any risk. The situation only slightly improves under a McCain presidency.
Ok, I'
4 comments:
Maybe you shouldn't post at 2:47 AM because your posts aren't coherent, genius.
http://mainstreetmeltdown.com/
Incoherent? Or just sloppy and leaving words at the bottom of the post?
Are you kidding me? The credit freeze has a lot to do with Obama. Not directly, but based upon the uncertainty of an Obama presidency. Banks don’t lend money during uncertain times., Obama has expressed less than opaque explanations of his own tax plan. For instance, sometimes $250K is Obama’s magic tax number, sometimes its $200K, and lately Biden is fronting $150K.
Further, Obama isn’t exactly cogent when it comes to how taxes are calculated. In explaining how 95% of Americans are going to get a tax cut when only 70% of Americans pay taxes, Obama pointed that the remaining 25% still pay payroll taxes, and the tax cut comes from there. Those who pay payroll taxes, but not income taxes (the 25%), are only paying their FICA; i.e. Social Security and Medicare. Essentially, the tax credit he wants to give the 25% comes out of Social Security and Medicare pay ins. So these folks won’t even be paying in the full amounts to Social Security and Medicare. But they get the full amount out when they retire. This is assuming its still around, after all, if not everyone is paying into the system, it won’t have enough to fund it long term, or I’ll have to pay more to cover those not paying in anymore.
Further, look at capital gains taxes. Until banks now how much a business will be paying in capital gains taxes, it makes it difficult to value the business. And unless you can value the business, you can’t be sure that the business is healthy enough to pay back the loan. And if you can’t figure that out you aren’t going to lend them money. Obama has never been clear what he would do to capital gains taxes.
One of his foremost economic advisers, and possible Treasury Secretary, George Soros, wants to fully tax money that multinational companies make overseas. Currently, a company like Coca-Cola, when it sells a Coke in China, which it makes in China, pays taxes on that to the Chinese government, although the profit from that sale is reflected in their overall, U.S. profit. The United States typically negotiates an overall deal with the company and country, so that Coca-Cola isn’t double taxed for profits originated and made overseas. Soros wants to end this, and enlist double-taxation of U.S. multinational companies. Not only would this lead to a flight of multinational corporations from the U.S., it would lead to declining profits as companies pay increased taxes in the U.S. And until you know what is going to happen, you aren’t going to lend money to the company.
Essentially, I think credit markets are frozen because of lending institutions are in a “wait and see” approach. Until people know what Obama is going to do, no one is willing to run any risk. The situation only slightly improves under a McCain presidency.
The first two sentences are all I needed to see. Believe what you want.
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