Surprise! Obama has made the rich a whole lot richer

The folly of Obama's economic policy has had a number of terrible results, but a number of results that have set the stage for a massive increase in the wealth of the wealthy.

The mismanagement of the banking crisis, failure to institute reasonable regulatory reforms and a lack of direction on the tax, entitlement and debt fronts have driven corporations, banks and the wealthy to hoard cash or move to safe haven assets like metals. The policies of the Obama administration have provided tremendous incentives for corporations to cut costs (further incented by tax breaks for infrastructure investments), lay folks off and increase automation.

Corporate profits are now at an all time high in many cases, yet stocks have been hammered.

Folks on the left clap their hands when they see the paper losses of the wealthy and for certain the wealthy are not happy about it. What happens now? People are selling stocks, taking capital losses which will off set their 2011 tax obligations. For a president who thinks the rich don't pay enough in taxes, wait until he sees how little taxes the rich pay this year. The rich don't live off of their annual compensation, they live off of investment income taxed at 15% capital gains rates. When the market bottoms out, the rich will buy back heavily into the market, dollar cost averaging their share prices and when the market rebounds, and it will, their wealth will explode.

Forcing folks into cash and then incompetently managing the economy leading to a market crash is a dream environment for serious investors. When the DOW comes back to 15,000 and it might take three years, many folks think - "oh they rich just got back what they lost". No they did not. They have in many cases significantly increased their positions in the market, off-set by declared tax losses and while the market index is only where it was prior to the crash, the rich have more stock and are thus far richer than they were.

Ironic that the gent who hates every rich person (other than those he chooses to hang out with) he has just executed a near perfect game plan to make them a whole lot richer.

reply to post by dolphinfan


Well here is a little more in depth analysis of corporats profits. It's important to note that you shouldn't lump all corporations together as a whole. Wall street profits are different than people who actually sell goods.

Here you go:

voices.washingtonpost.com...

reply to post by kro32


Clearly, but no different anytime there is a large swing in volatility in the markets. Winners and losers and timing. The wealthy are not on their E-trade accounts, they are playing at the institutional level with access to the worlds best quantitative research.

They'll make bank over the next 3 years. they always do

reply to post by dolphinfan


Wow that does actually seem like some scheme they've got going on here. This kinda draws other things going on right now into question........

Great catch dolphinfan, but none too surprising.

The game is rigged, and the cards are stacked. Nothing new to this.

When I was a small child watching some Depression-era movie with my Dad, I asked him if ANYBODY came out ahead during that time. He laughed and said, "you better believe it".

All that concentration of wealth in the hands of the few guarantees that certain individuals will be buying assets at 50 cents - on the dollar. Then where will we be? Chances are you don't want to know.

i wasnt going to post here because i am tired of threads that end up bashing the rich and corporations.

the war on the rich has been the most successful war that has ever been fought and for all intensive purposes it has be won.

from the demogagery that has led to legislation and that legislation has had consequences to the point of the current state of the union right now this minute there are only 8.4 millionaires and only 400 billionaires and those numbers are constantly declining.

taking into account the federal reserve and inflation thats not alot of cash 1000 1950 dollars is over $9,000 in todays dollars.

however if one looks to rest of the world like china and india those numbers are rapidly increasing success and wealth goes to where the money is and that aint the us anymore.

this nations policies have pushed business and finance offshores with seeking more power more rules and more regulations because too much is never enough but it is and we can all see the detrimental effects have caused.

the old axiom the rich get richer is because of one simple fact money made over seas the us cant touch and the penalties for bringing that cash back here and employ and finance people is not cost effective.

we are in it to make money and so are they and if you cant make money you go elesewhere costs continually rise and the dollar constantly falls this is the bed some people have made in this country and we are all suffering from it.

the china factor is a key element here as well chinas potential and massive market place and the hunger for things they did not use to have has led to explosive growth and at the same time a decline here and other parts of the world.

the global redistribution of wealth is an apt name for it things wont change here and the never will until the classwarfare stops until the hate all those evil rich folks stops that path leads to only one out come the former soviet union and maos china and north korea.

read the communist manifesto sometime yeah i said communism because social engineering aka socialism is just a slightly hipper rap that has led us here.

reply to post by neo96


I could not agree with you more. It is absolutely comical that this gent's policies will have the opposite effect of what his ultimate goal is and that is a state driven, command economy.

When money gets pulled off the table, it goes somewhere and this gent has forced folks to take their hard earned money off the table and he is going to rue the day when the results of his policys are known and they have manifested them in ways he will absolutely despise.

But again, no mystery there. The gent not only does not believe in free market economics, he does not understand it.

reply to post by neo96


"the war on the rich has been the most successful war that has ever been fought and for all intensive purposes it has be won. "
QUOTE



BRAVO NEO96!! Well said! Sad but so true. The fact that Obama has also put restraints on the energy industry and tied their hands......this will only contribute another element to the ever declining "irreversable" dollar.

We don't even have the means to recover. We manufacture NOTHING, we sold all the rights to the things we used to manufacture coupled with Federal Reserve's tactics of lending out foreign aid, and continuing to "sell" our government (the people) their own money back to us at an obscene interest rate when they manufactured it out of nothing has been and will continue to be the demise of our Nation and the people in it. I'm just not sure we CAN recover unless this monitary system is re-structured and the Federal Reserve abolished.

Not to mention we need somebody who is ACTUALLY elected by the PEOPLE that is competant to run and manage this Country. as well. In order to have a recovery system in place.

Yeah sure, Obama made them richer....

Way to keep those blinders on nice and tight, wouldn't want you to get a dose of reality.

The rich made themselves richer with entrenched policies that were in place long before Obama came into office. They bribed and used their wealth for influence to get lax tax policies, loopholes galore, and a nearly completely de-regulated market designed to let them get away with anything they want. It's the Republicans that are out to make the rich richer in the hope that some of that wealth may eventually trickle back down to the peons. We've had 30 years to prove the fallacy of that economic policy.

[atsimg]http://files.abovetopsecret.com/images/member/503f1578d2b7.jpg[/atsimg]

reply to post by Blackmarketeer


Obama and typical democrat policies will make them richer and a lot richer. They will make them richer in ways that don't support general economic growth.

When markets are liberal and there is a steady increase in the value of investments, i.e. the stock market is going up, companies are being founded with venture capital, you have an expanding economy. Republicans typically enact policies that facilitate an expanding economy. Low tax, low regulation. The rich invest and get rich. In that kind of scenario, the risk in investing is carried by the investors, not the government. The investors are buying the stocks, they are investing in start-ups they are taking the risks. They put their money to work in the system. More money in the system, more money to hire folks, more folks working and tax revenues go up.

Obama's policies have shifted who bears the risk from the investor to the government. In periods with anti-business policies such as we have now, the rich find other things to do with their money. The rich take their money off the table and do other things with it. Put it in commodities, cash, invest it off-shore, find other investments like real estate deals. Point being that their money is not in the system fueling economic growth. The government takes all the risk. TARP, stimulous, cash for clunkers, GM bailout. In all of those things, the government has essentially taken the investment risk which is never a good thing for either the government nor the ecomony.

Currently, Obama's policies have forced the rich to take their money off the table. They will hoard cash until some sense comes out of the White House relative to economic policy. They will find other things to invest in, make money while the economy tanks than buy back in.

When the folly of spending and printing unlimited amounts of money come home to roost and the government will need to raise interest rates, who is going to buy those double digit bonds? The rich. Again, with a high interest government bond market, the rich gent has his bond and a tiny amount of risk and none of his money is in the private economy. The private sector will not grow with out money and unless the government has policies that support economig growth, the money will sit on the sidelines.

When you hear folks crying about a 8,500 DOW, who do you think that is? It might well be an economist, but it certainly is not an investor who is already out of the market substantially, sitting on a load of cash. That gent can't wait for the 8,500 DOW to buy back heavily into the market.

The rich will get rich regardless, it is just a matter of who you want to take on investment risk and Obama's policies have shifted much of the economic risk today to the government and away from the rich.

Originally posted by dolphinfan
The folly of Obama's economic policy has had a number of terrible results, but a number of results that have set the stage for a massive increase in the wealth of the wealthy.

The mismanagement of the banking crisis, failure to institute reasonable regulatory reforms and a lack of direction on the tax, entitlement and debt fronts have driven corporations, banks and the wealthy to hoard cash or move to safe haven assets like metals. The policies of the Obama administration have provided tremendous incentives for corporations to cut costs (further incented by tax breaks for infrastructure investments), lay folks off and increase automation.

Corporate profits are now at an all time high in many cases, yet stocks have been hammered.

Folks on the left clap their hands when they see the paper losses of the wealthy and for certain the wealthy are not happy about it. What happens now? People are selling stocks, taking capital losses which will off set their 2011 tax obligations. For a president who thinks the rich don't pay enough in taxes, wait until he sees how little taxes the rich pay this year. The rich don't live off of their annual compensation, they live off of investment income taxed at 15% capital gains rates. When the market bottoms out, the rich will buy back heavily into the market, dollar cost averaging their share prices and when the market rebounds, and it will, their wealth will explode.

Forcing folks into cash and then incompetently managing the economy leading to a market crash is a dream environment for serious investors. When the DOW comes back to 15,000 and it might take three years, many folks think - "oh they rich just got back what they lost". No they did not. They have in many cases significantly increased their positions in the market, off-set by declared tax losses and while the market index is only where it was prior to the crash, the rich have more stock and are thus far richer than they were.

Ironic that the gent who hates every rich person (other than those he chooses to hang out with) he has just executed a near perfect game plan to make them a whole lot richer.

And the REPUBLICANS and TeaPot mentals would have done it better ????

If you wanted to reduce the wealth of the Rich overnight then that would have really upset ALOT of those in power BOTH Democrat and Republicans...!!

PDUK

reply to post by dolphinfan


I just love it when the farce of Liberal Politicians is exposed.

Hope and change you (Rich elites) can believe in.

Originally posted by neo96
i wasnt going to post here because i am tired of threads that end up bashing the rich and corporations.

the war on the rich has been the most successful war that has ever been fought and for all intensive purposes it has be won.

Too bad the losers in DC can't apply that to terrorism, poverty, drugs, crime or anything else you can think of.

Originally posted by neo96
i wasnt going to post here because i am tired of threads that end up bashing the rich and corporations.

the war on the rich has been the most successful war that has ever been fought and for all intensive purposes it has be won.

What a load of garbage. These people currently control the country. The reason that people make threads bashing the rich and the 'corporatocracy' that are running this land into the toilet bowl is because they are the cause of the problems.

Everything that has been done by our government has taken their wants and needs into consideration first, and the people are put onto the back burner.

If we had a legitimate government that served the interests of the people in a genuine, efficient manner, no one would make threads like this.

When SHTF, we'll see how much sympathy that these rich people that you want to coddle and protect have for you.

reply to post by Blackmarketeer

....It's the Republicans that are out to make the rich richer in the hope that some of that wealth may eventually trickle back down to the peons. We've had 30 years to prove the fallacy of that economic policy....

Get real.

The democrats are just as bought and paid for as the republicans they just lie better.

Dwayne Andreas worked for Cargill and then worked for Archer Daniels Midland Company (ADMC) becoming CEO in 1971. He is considered the TOP campaign donor in the USA giving millions to Democratic and Republican candidates.

It certainly paid off well. Rosa Delauro just finished selling out the American farmer to the Ag cartel with the Food "Unsafe" Modernization Act that handed control of the US food supply to the WTO/Ag cartel.

“...Today three companies, Archer Daniels Midland, Cargill, and Bunge control the world’s grain trade. Chemical giant Monsanto controls three-fifths of seed production. Unsurprisingly, in the last quarter of 2007, even as the world food crisis was breaking, Archer Daniels Midland’s profits jumped 20%, Monsanto 45%, and Cargill 60%. Recent speculation with food commodities has created another dangerous “boom.” After buying up grains and grain futures, traders are hoarding, withholding stocks and further inflating prices....” www.globalissues.org...

...Dwayne Orville Andreas (born 4 March 1918) is one of the most prominent political campaign donors[1] in the United States, having contributed millions of dollars to Democratic and Republican candidates alike....

Andreas commands much respect among Washington politicians for his largesse. As part of the investigations surrounding illegal campaign fundraising linked to the Watergate scandal, Andreas was charged with (but acquitted of) illegally contributing $100,000 to Hubert Humphrey's 1968 presidential campaign. In 1972 Andreas unlawfully contributed $25,000 to President Nixon's re-election campaign via Watergate burglar Bernard Barker. Other recipients of Andreas's "tithing" — as he puts it — have included George H. W. Bush, Jimmy Carter, Bill Clinton, Bob Dole, Michael Dukakis, Jesse Jackson, and Jack Kemp.
According to Mother Jones magazine:

“ During the 1992 election, Andreas gave more than $1.4 million in soft money and $345,000 to individual candidates, using multiple donors in his company and family members (including wife Inez) to circumvent contribution limits.”

en.wikipedia.org...

For details of the head games being played SEE: www.abovetopsecret.com...

or Analysis of 2008 food riots: www.abovetopsecret.com...

or from a liberal:

smirkingchimp.com...
www.smirkingchimp.com...
www.smirkingchimp.com...

Do not forget WTO was passed on CLINTON's watch as was NAFTA.


I really really wish liberals would take the blinders off and see ALL politicians are corrupt with very few exceptions. Then maybe we would have a chance to save this country.

No I am not a republican I can stand them either

excellent post crimvelvet

both of these political parties are the problem

THEY DO NOT SERVE US.

If you do not serve the common man, you are a threat.

reply to post by sir_slide

Wow that does actually seem like some scheme they've got going on here....

They have been play the same game over and over for a century or more.

I suggest you read a well researched article detailing what "they" have been up to since WWII:
www.opednews.com...

And SECRETS OF THE FEDERAL RESERVE[/y] by members of the staff of the Library of Congress with Mullen as author. www.apfn.org...