2/13/13

Debt is not the problem, the deficit is our problem

Think of it this way.  Our debt is 15 trillion dollars and our deficit is 1.62 trillion dollars.  Take off the last eight zeroes and here it is.
  • We are a family that makes $22,000
  • We are a family that spends $38,000
  • That is a deficit of $16,000 annually
  • We owe $150,000
If you consider our debt like a family would their mortgage, it's not a huge problem at all.  Over time, with regular income raises (GDP increasing), we are actually just fine.

Our problem is that we don't make enough money to pay what we spend.  We need to clearly to bring in more revenue AND lower our spending.

Since congress is not likely to increase taxes on individuals (to where it is in most countries), then we need to increase the revenue from businesses, even 1-2% would make a huge difference but republicans won't even consider this.  Most countries do not allow writeoffs to zero like we do here in the US.  Multi-national companies use the IRS tax code to write off all R&D spending here and not elsewhere.  We here that we have the highest corporation tax in the world, maybe, but that's the top line, the bottom line is what counts and we take in about the lowest tax rate in the world.

As far as spending is concerned, wow, we have a problem, again in congress and this time, its the democrats.  Probably a serious look at medicare, medicaid and social security makes sense.




1/25/13

How Stocks Have Performed For US Presidents



  • Barack Obama, first term (2009-2013): 71.71%
  • George W. Bush, first term (2001-2005): -1.01%
  • George W. Bush, second term (2005-2009): -24.09% (entire presidency: -24.85%)
  • Bill Clinton, first term (1993-1997): 111%
  • Bill Clinton, second term (1997-2001): 54.70% (entire presidency: 226.58%)
  • George H.W. Bush (one term, 1989-1993): 45.03%
  • Ronald Reagan, first term (1981-1985): 29.10%
  • Ronald Reagan, second term (1985-1989): 77.2% (entire presidency: 135.13%)
  • Jimmy Carter (one term, 1977-1981): -0.87%
  • Gerald Ford (one term, 1974-1977): 23.38%
  • Richard Nixon, first term (1969-1973): 10.19%
  • Richard Nixon, second term (1973-1974): -23.71% (entire presidency: -16.53%)
  • Lyndon Johnson, first term (1963-1965): 25.84%
  • Lyndon Johnson, second term (1965-1969): 4.01% (entire presidency: 30.89%)
  • John Kennedy (one term, 1961-1963): 12.16%
  • Dwight Eisenhower, first term (1953-1957): 65.78%
  • Dwight Eisenhower, second term (1957-1961): 33.50% (entire presidency: 120.27%)
  • Harry Truman, first term (1945-1949): 14.48%
  • Harry Truman, second term (1949-1953): 58.74% (entire presidency: 81.73%)
  • Franklin Roosevelt, first term (1933-1937): 245.39%
  • Franklin Roosevelt, second term (1937-1941): -30.50%
  • Franklin Roosevelt, third term (1941-1945): 18.16%
  • Franklin Roosevelt, fourth term (1945-1945): 3.78% (entire presidency: 194.35%)
  • Herbert Hoover (one term, 1929-1933): -82.85%
  • Calvin Coolidge, first term (1923-1925): 39.75%
  • Calvin Coolidge, second term (1925-1929): 154.63% (entire presidency: 255.85%)
  • Warren Harding (one term, 1921-1923): 17.43%
  • Woodrow Wilson, first term (1913-1917): 16.01%
  • Woodrow Wilson, second term (1917-1921): -20.97% (entire presidency: -6.94%)
  • Theodore Roosevelt, first term (1901-1905): 13.22%
  • Theodore Roosevelt, second term (1905-1909): 7.42% (entire presidency: 21.62%)
  • William McKinley, first term (1897-1901): 63.47%
  • William McKinley, second term (1901-1901): -0.49% (entire presidency: 62.68%)
To see the entire article, visit http://blogs.wsj.com/marketbeat/2013/01/18/hail-to-the-chief-dow-returns-72-in-obamas-first-term/