For Entertainment Purposes Only
I suppose I should pretend to have something introspective to say about Joe Biden's budget, which commanded an outsized share of financial media attention on Thursday.
I'm not inclined to pretend, though, for three reasons.
First, and most obviously, the House is in Republican hands, even as the majority is razor-thin, and some of those hands are intent on throttling the US legislative process to death (figuratively speaking). It wouldn't matter what was in Biden's budget -- the GOP doesn't ne
What is even more “entertaining” – SI, SIVB, and the whole bank complex.
SIVB dumping $22BN of bonds at a reported $1.8BN loss, and a $1.8BN share offering (at -60% down on the day?) – all supposedly in response to a “declining deposit base”. Seems like an urgency mismatch.
https://www.americanbanker.com/news/svb-shares-fall-sharply-after-1-8b-in-surprise-bond-losses
Good post.
On the actual topic H wrote about – sorry for being a “Look, A Squirrel!“ distraction about the bank carnage – taxpayers in the US enjoy darn near the lowest tax burdens in the West, whether you’re high or low income, individual or corporate.
I looked pretty hard at moving to Europe last year, and the projected tax bite was so big that I’m still in the frustrating, heartbreaking US. Yes, I have been known to complain about my tax bill, but that’s not what is heartbreaking about America.
Wouldn’t it be nice to get a simpler tax code that limited the options of the rich and powerful to hire incredibly smart lawyers and accountants to avoid taxes? Maybe society would even benefit from having all that brainpower devoted to doing something truly productive. OK, I’m dreaming. Forgive me.
The US government doesn’t need this money to pay for anything. It’s shifting wealth from the wealthy, with less propensity to consume, to the relatively poor in an effort to aliviate the latter from the effects of inflation which is actually enabling long term inflation.
The contradicting nature of fiscal and monetary policy stands at the core of the major imbalances of the post-COVID era where tail moves are currently brewing and starting to show signs of materialization.
The problem is that however much higher taxes get for us, it will never be enough! Spending will continue to increase and new wonderful programs will be created and we will still have the deficit.
I’m not rich (other than technically by H’s definition) but I lost my wife on New Year’s Eve in 2019. The next year I was greeted with a slightly lower income (lost her SS) and a boot up from the 24% bracket to the 35% bracket where I reside today (oh and dragging the 3.8% surtax behind). Somehow I can’t see the change between me and Biden’s proposal. Unlike the bank I can only write off $3k in losses and can’t deduct more than $10 in sate and local taxes paid (thanks to the Donald). Anybody else out there rich enough to get screwed?
“The key to being rich in America is just having money,” and it keeps getting better from there. Could be your best piece yet, H, and I couldn’t agree more, even as I approach being describable myself as well off (though a bit late as I tread toward the back nine of 75). And Biden’s proposed increases wouldn’t affect me yet, so it’s not as if I’m actually rich!—but not having to worry so much about where the next meal comes from is a level of relief I can definitely live with. Keep up the good work, I really enjoyed this and your headline elsewhere ‘Stay calm!’ It’s just a bank run. Sometimes we need to laugh through our tears.