Arnold’s Ramblings 11-23-2011

What is going on here? I just don’t get it! The Occupy Wall Street people are now running roughshod over the 99 percent. The chaos that was caused by the Occupy Wall Street people last week blocking access to Wall Street banks and firms affected the 99 percent; blocking access to the NY Subway system affected 99 percent; and blocking access to the bridges affected the 99 percent. Arnold thought this was about the 1 percent.

If President Obama wants to significantly improve the jobs situation, he could have approved the Keystone XL pipeline (estimated 250,000 jobs); Obama could approve shale drilling (250,000 jobs), and Obama could approve offshore drilling (estimated 300,000 jobs). This would have two HUGE benefits: one, no federal government investment and two, SIGNIFICANT reduction in oil imports which would also significantly reduce our balance of payments issues. These 800,000 jobs plus another one million, plus support jobs, are high paying jobs – yet Obama will not allow these jobs to be created.

On one of my forays at the Daily Kos, there was a list of the eight “demands” of the “Occupy” movement. So Arnold thought that he would list these “demands” and comment on them, so here goes. In each case the “demands” are stated as written, unedited by Arnold:

  1. Tax Wall Street for gambling with our money. Pass the financial speculation tax.
  2. Support education. Put teachers back in classrooms and ease the crippling burden of student debt.
  3. Keep working families in their homes. Pass a mortgage relief plan that puts the needs of homeowners above the greed of mortgage bankers.
  4. End too big to fail. Rein in the big banks NOW and hold the people who caused the financial crisis accountable.
  5. Fair share of taxes from the 1 percent. End the Bush tax cuts for the 1 percent and close corporate loopholes.
  6. Businesses should invest in jobs. Corporations must stop sitting on their profits and start hiring again in America.
  7. Extend unemployment insurance. Millions of Americans are still out of work, and unemployment insurance is a vital lifeline.
  8. End corporate control of our democracy. Abolish “corporate personhood” and restore full voting rights to real people.

Arnold will now comment on the above eight points one by one:

  1. It appears that the plan is essentially a tax the “rich” plan and spend for progressive causes such as unions (teachers), etc. Financial speculation tax would tax the rich and also the middle class.
  2. The problem with education is not that there are insufficient numbers of teachers. In the 50’s and 60’s, there were half the number of teachers per student and the test results placed the United States first then, we’re 32nd now. And regarding student loan debt, since fairness is the issue of these people, is it fair for one student to work his/her way through school while another takes loans which are then are forgiven for no reason?
  3. Homeowners taking out mortgages knew what the situation was. The truth is that the mortgage brokers were greedy, the mortgage bankers were greedy and so were the homeowners. Again fairness dictates that the borrowers pay back the money, otherwise no one will pay back money, and then if loans are not paid back, who would ever lend money again?
  4. Arnold agrees with this in concept!
  5. The 1 percent now pays over 40 percent of total tax collected.
  6. Arnold does not know how this could be legislated.
  7. Arnold does not agree with this at all.
  8. This plan would suggest ending corporations, which means the end to limited liability for owners of corporations, which means a substantial reduction in business activity. Without limited liability, there will be very little business investment. And “real people” have voting rights as far as Arnold is aware.

Spain elected conservatives who ran for office with austerity as their message and the conservatives won in a landslide – which in Spain is a really big deal.

  • The DJIA somehow should have a year end rally, then early next year watch out!
  • Gold could have one more attempt at $2000 the ounce, then down, down, down to at least $1000 the ounce.
  • Oil should exceed $100 a barrel, then we will see.
  • Interest rates should start to rise into year end.
  • The dollar has been holding pretty well.
  • Real estate pricing is still very weak, and we could easily have another leg down soon.
  • The economy has improved some and may improve some more, bit by the end of the first quarter the economy should head down again.

Arnold
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Prior to 1980, Arnold Goldin worked in various publicly held companies rising to the position of Assistant Corporate Controller of US Surgical Corporation. From 1980 to present, Arnold has served as President of Arnold S. Goldin & Associates, Inc. (and related and associated entities), providing accounting, tax and management services functions to individuals and corporations throughout the United States. Since 2002, Mr. Goldin has also written an e-zine related to geo-politics and finance, which can be found at arnoldsramblings.com.

The views expressed are those of the writer and do not necessarily represent those of BIZPAC Review, its management, staff or advertisers.

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