Panic, of course.What do you propose we do?
In 2011, according to the Tax Policy Center, about 46% of households didn't pay any U.S. income taxes,....
That sure seems foolish to me. If I do nothing, I pay no income taxes. If I move everything to cash and bonds, I will pay thousands in income taxes.One could move everything to cash and bonds until there is some clarity.
That sure seems foolish to me. If I do nothing, I pay no income taxes. If I move everything to cash and bonds, I will pay thousands in income taxes.
What happens if there is no greater clarity?One could move everything to cash and bonds until there is some clarity.
I think market timers are in the minority here, but it's your portfolio to do with as you see fit. If negative real returns on cash and low yields/uncertain bond fund NAVs (a lock to drop when interest rates rise; who knows when) look better than equity returns to you...One could move everything to cash and bonds until there is some clarity.
Very little changes for us little guys, so I see no reason to do anything. We weren't paying any income taxes before and we won't be paying any income taxes after.
The Numbers Behind the Tax Debate - WSJ.com
Refer to your earlier post and panic of courseWhat happens if there is no greater clarity?
Then we kick the can and it gets even worse the next time we approach the cliff.What happens if there is no greater clarity?
I suspect we will slip over the edge on December 31 and we may get a bit of a hit on the markets. Then some sort of compromise will get hammered out in January and the markets will bounce back (everything else being equal at the time).
Reflecting a more polarized electorate than ever...every one of them was elected.Like Bob Brinker said, This group in Congress is dysfunctional.
None of them voted for any irresponsible spending or imprudent tax policies. Each assures us they voted only for the necessary stuff. It's the >other< irresponsible legislators that are the problem. The debt ceiling is like the "you've hit your limit" notice from the credit card company to the married couple that is spending irresponsibly (each on different "priorities"). It serves to make the problem a collective one (for the whole organization) and the pain focuses their efforts. It's crazy, but apparently it's necessary. The national debt seems to only hit the news when the debt ceiling looms.The worse mess is the debt ceiling. We shouldn't even have such a thing. It should be handled automatically to cover whatever obligations the Congress vote into law. This artificial wall serves only to enable suicidal brinksmanship on the Hill by people who often voted for the very cause of the debt. I see no end to that cyclical madness.
It is insane. With or without Bush tax cuts, with or without a recession, everyone in Congress understands that the debt ceiling will be breached every few years based on budget choices already made. Having made those choices to then allow brinksmanship with an artificial "shall we pay for it or go bankrupt" Russian Roulette game on the Hill is nuts. And in this game the gun is pointed at us.None of them voted for any irresponsible spending or imprudent tax policies. Each assures us they voted only for the necessary stuff. It's the >other< irresponsible legislators that are the problem. The debt ceiling is like the "you've hit your limit" notice from the credit card company to the married couple that is spending irresponsibly (each on different "priorities"). It serves to make the problem a collective one (for the whole organization) and the pain focuses their efforts. It's crazy, but apparently it's necessary. The national debt seems to only hit the news when the debt ceiling looms.
Reflecting a more polarized electorate than ever...every one of them was elected.
What is the sense in voting. They are all the same. It is all about special interests and taking care of the wealthy and big business. Nobody is interested in moving the agenda of this country forward.To bad the electorate is a small percent of the citizenry...
As an example, the new Senator from Texas will be Ted Cruz... he got 631,316 votes from just over 13 million registered voters... or less than 4.9% of people who could vote...
It is a formality in the general election.... nobody would give any odds on a Democrat winning, including the Democrats (I am not trying to be political here, just stating what is true).....
I would bet that this is similar to other elections on both sides, it is not specific to this party or this candidate....
So, until the people who do not like the way things turn out start to vote in the primary, we will continue to get more and more polarized...