Archive for June, 2009

The Country’s Economy is in Good Hands….

June 11, 2009

“I don’t know anything about cars,” – Edward E. Whitacre Jr.

Warren buffets economic advice is:”straightforward: distrust debt; build in a margin of safety; be in there for the long term; don’t invest in something you don’t understand.”

Sources:
bloomberg.com, Whitacre Vows to ‘Learn About Cars’ as GM Chairman (Update1) , Amy Thomson and Katie Merx, June 10, 2009 17:36 EDT

guardian.co.uk, Inside the mind of a colossus, As we enter a global recession, the life of Warren Buffett, the world’s richest – and thriftiest – man, is more salutary than ever, Ruth Sunderland, The Observer, Sunday 26 October 2008

Control – “they hope to save you from yourself”

June 10, 2009

From NPR

All are devotees of behavioral economics — a school of economic thought greatly influenced by psychological research — which argues that the human animal is hard-wired to make errors when it comes to decision-making, and therefore people need a little “nudge” to make decisions that are in their own best interests.

And that is exactly what Obama administration officials plan to do: By taking account of human psychology, they hope to save you from yourself.

This is the story of how obscure psychological research into human decision-making first revolutionized economics and now appears poised to remake the relationship between the government and its citizens.

Goes along with this quote by Michelle Obama:

Barack will never allow you to go back to your lives as usual, uninvolved, uninformed

Pajamas TV VIDEO on why this is a bad idea.

Sources:
Using Psychology To Save You From Yourself, Alix Spiegel, All Things Considered

New York Times, OP-ED COLUMNIST, Spock at the Bridge, MAUREEN DOWD, Published: March 1, 2009

Running from Taxes

June 9, 2009

1/3 of Maryland Millionaires Missing
The WSJ notes that since the state of Maryland imposed its new millionaire tax last year, one-third of all millionaires in the state have disappeared. No doubt a good part of that is economic related, but many have also picked up and left the state.

On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.

Taxes To Move Microsoft Jobs Overseas

Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

“It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”

Oil Companies Hoping To “stay out of reach of Barack Obama” Move To Switzerland

Reuters: The tidy towns and mountain vistas of Switzerland are an unlikely setting for an oil boom.

Yet a wave of energy companies has in the last few months announced plans to move to Switzerland — mainly for its appeal as a low-tax corporate domicile that looks relatively likely to stay out of reach of Barack Obama’s tax-seeking administration.

Emerson Electric Co. Chief Executive Officer claims us is hurting manufacturing

Emerson Electric Co. Chief Executive Officer David Farr said the U.S. government is hurting manufacturers with regulation and taxes and his company will continue to focus on growth overseas.

“Washington is doing everything in their manpower, capability, to destroy U.S. manufacturing,” Farr said today in Chicago at a Baird Industrial Outlook conference. “Cap and trade, medical reform, labor rules.” . . . Farr, in his presentation, also said manufacturers are being hurt by taxes and regulation. He said companies will create jobs in India and China, “places where people want the products and where the governments welcome you to actually do something.” –Bloomberg

Notes to self – NY and CA exodus….

Sources:
The Wall Street Journal, MAY 27, 2009, Millionaires Go Missing
Maryland’s fleeced taxpayers fight back.

Bloomburg, Ballmer Says Tax Would Move Microsoft Jobs Offshore (Update3) , Ryan J. Donmoyer, June 3, 2009 16:12 EDT
reuters Corporate oil booms in low-tax Switzerland, Wed Mar 11, 2009 9:50pm EDT, Sam Cage