posted March 05, 2013 08:03 AM            

Forget income. Income is meaningless. To explain, $400K of annual income for a family gets you into the top 1% of the IRS class. On the other hand, the top 1% in net worth requires an true ownership position of $17 million (assets minus all liabilities).

Let's focus on net worth. It is estimated that the top 1% owns 42% of wealth, and the next 19% (the managerial/profesisonal class) owns the next 50%.

posted March 05, 2013 08:22 AM            

quote:

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Originally posted by YoursTrulyAlways:
So what exactly do you propose to construct a more egalitarian distribution of wealth?

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*End the Fed.

*More regulations and ENFORCEMENT of laws for the banking industry and stock market.

*Outlaw lobbying.

*Fix the prejudicial tax system.

posted March 05, 2013 01:36 PM            

All noted and supported.

If you ended the Federal Reserve System, you still need a Central Monetary Authority. What exactly do you propose (other than the Paulie mantra about ending the Fed)?

posted March 05, 2013 01:48 PM            

Look at the "clamping down" thus far. Has anything clamped down? It is a joke.

Mortgage underwriting standards have skyrocketed and banks now refuse to lend at all. It's so much easier to go make money in wholesale banking than lend money to Joe to buy his house, and chances are that Joe the Plumber isn't doing too well in this economy, so the bank isn't about to extend an unsecured line of credit. Or provide a term loan for Joe's capital expansion. It's too much trouble and not enough return. AND THERE IS NOTHING THE GOVERNMENT CAN DO ABOUT THAT.

The last time some damn hedge fund Don Juan de Marco went to jail on anything was.... can't remember. Fundamentally, the SEC/DoJ is on the losing end. The talent goes to the law firms, where first year starting salaries for lawyers with zero experience is over $200K. Who do you think will win court cases? The $1,000 an hour partner or... the esteemed Attorney General who doesn't know his anterior from his posterior?

The stock market is still the wild west. You can't do a naked short sell? OK. You can still do blind arbitrage, and regardless about how you regulate, you cannot stop someone to get into future delivery of a financial asset without ownership because of the derivatives market. And a large portion of that sits in London and Tokyo. THE US GOVT CAN'T REGULATE THAT.

Step up the tax system such that capital gains are equal to income tax rates. Then you'll create capital flight and all the hedge funds will incorporate offshore in a friendly tax jurisdiction that has a 10% capital gains rate, or worse, in Hong Kong, UAE, besides the typical Carribean hotspots, where capital gains is not taxed at all. AND YOU CAN'T STOP THAT.

Outlaw Lobbying is really nice but unfortunately the most altruistic of liberal Democrat congress people have corporations filling their backpockets. AND THERE IS NOTHING THAT CHAS EVER BEEN DONE ABOUT THAT.

We don't need more trumpeting of the chorus. We need concrete details, not conceptual visions. All those damn politicians sound the same.

posted March 05, 2013 02:00 PM            

why, ian, do we need a centralized monetary system? my local community has its own currency now...and i think this is a growing trend. electronic money should be against the law. paper is bad enough in terms of inflation and manipulation!

posted March 05, 2013 02:01 PM            

quote:

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Originally posted by mockingbird:
http://www.nytimes.com/2013/02/27/opinion/republicans-must-bridge-th e-income-gap.html?pagewanted=all&_r=1&

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mockingbird,

I'm all for "hey hey ho ho, the rich bankers have to go." I deal with that sh1t almost everyday with kids sitting outside the building opposite the street.

The end of the day, kids have to stop working at McDs and Starbucks in order to make a decent living wage. That retail economy thing won't sustain any kid, let alone allow the kid to buy a home.

You know the mortgage underwriting standards around here these days? 15% to 20% down. In the NYC market, that's over $100K of pure cash. Which 20+ year old kid struggling to make ends meet has that sort of cash?

I know kids unable to repay their five figure college loans, working at barely minimum wage. What do you expect folks liek George Soros to do? Walk out of their buildings and hand over six figures to each kid?

At the end of the day, the underlying economy still has to fundamentally grow.

posted March 05, 2013 02:05 PM            

i realize their money is on the global picture now. all we can do is focus on details that hinder that process.

a pity really, because we ARE one world. it just isn't being implemented in the right way. a central global govt will not work, even if they get to where one is established.

posted March 05, 2013 02:07 PM            

quote:

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Originally posted by katatonic:
the big banks are currently stepping into hot water as the scale of their foreclosure fraud comes to light. whether anything much will be done, we will see, but elizabeth warren is a very good agent for actual regulation taking place. pray for her continued health, safety and integrity!

why, ian, do we need a centralized monetary system? my local community has its own currency now...and i think this is a growing trend. electronic money should be against the law. paper is bad enough in terms of inflation and manipulation!

as to "the talent" going where the biggest bucks are, not necessarily! not everyone is convinced that chasing the rainbow on a treadmill is a great life!!

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Kat,

The penalties are what? $100 million? JP Morgan's net income for 2012 was $22 billion.

And JP Morgan is no longer enthusiastic about doling out consumer loans. Its so much easier to make money in the wholesale treasury markets, which causes more risky behavior and big losses.

What does the US do? Shut down the wholesale markets? That'll shut out more than half of foreign investment. China will place a call on US treasury debt. Can't do that.

As for healthcare, the penalty per employee for not meeting the federally mandated insurance standard is $2,000 per employee. The cost of employee insurance under "Obamacare" is $6,000. More than enough corporates have outright said that they will refuse to be in compliance because paying that fine is cheaper.

Penalties are too low. Enforcement is too lax. And the government is on the losing end.

And yes, as much as you are altruistic, the world is a greedy place, at least around NYC, Chicago, LA and Houston. Money talks, and the talent flocks to where the money is.

posted March 05, 2013 02:09 PM            

No sweat off my back. Keeps the good ones honest.

posted March 05, 2013 02:21 PM            

quote:

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Originally posted by katatonic:
as i understand it the capital gains rate went up 5% at least on top margin? that is a fairly large increase, more than the raises on income tax or payroll tax created. baby steps maybe, but in the right direction! still a pittance that the truly wealthy can afford.

i realize their money is on the global picture now. all we can do is focus on details that hinder that process.

a pity really, because we ARE one world. it just isn't being implemented in the right way. a central global govt will not work, even if they get to where one is established.

the black market grows with every attempt to centralize money/power. as it ever was/will be.

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The US now has a 20% capital gains tax rate.

Do you know what it is in Communist China? 10% for non-resident enterprises.

How about Russia? 20% UK? 18% Japan? 20% France? 34.5%.

Singapore? 0% Hong Kong? 0% South Korea? 0.3%. Switzerland? 0% Thailand? 0% Philippines? 6%

posted March 05, 2013 02:44 PM            

however in the 50s the top tax rate here was 90% too, and no one went running to the caymans for shelter, or many fewer anyway! i reckon there will always be some tax havens and i don't really care. what i care about is that multinationals are being given the keys to congress!

i will continue to watch EW and hope that she can make inroads into the corruption in the SEC and washington's intimate relationship with the big banks and big money. a risky enterprise which i hope she is equal to. maybe her heroism will gain some support from her colleagues. it is up to the voters to keep putting honest folk in the halls of power.

meanwhile, i respect your views though i don't necessarily agree with them. i DO agree that a whole prison full of banksters should be made examples of. forget the penalties, unless they are unending they won't amount to much. i understand that.

posted March 05, 2013 03:13 PM            

Throw away the keys.

I shed no tears for the wealthy, except that I worry about the economic outlook and jobs for the young folks.

As for myself, I am lumped into that 1% income bracket, which I believe is unfair and unfortunate. My net worth isn't anywhere close to that category, but I am universally hated. That is alright.

posted March 05, 2013 03:48 PM            

quote:

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Originally posted by YoursTrulyAlways:
mockingbird,

I'm all for "hey hey ho ho, the rich bankers have to go." I deal with that sh1t almost everyday with kids sitting outside the building opposite the street.

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