Originally Posted by K&J's Dad
The people making the most don't put the most into the economy. You are incorrect here. They are the ones that save and invest.
The wealth don't buy up stocks intimes like this. If people aren't spending and stock price's drop, investors move into bonds and other ventures. When the economy starts to pick up and stocks start to move back, this is when they jump back into buying stocks.
It is all simple economics Most people bitch about the economy and how they don't have any money but they still pay for cable (digital plus HD & throw in HBO, Showtime, and Cinexax), their cell phones, their internet service, buy lots of toys, etc. Get rid of the extras and you can live quite well on a lower income. Stop keeping up with the Jones'.
First of all, the wealthiest people put very little in to our economy, but they are the largest load on our infrastructure. Corporations are 'legal persons' and they use more of our infrastructure than the entire citizenry combined. They are the ones that should pay the most, but Reagan got rid of the 90% taxation rule that this country prospered under for decades, and that's when the middle class started getting squeezed. Until we roll back the Reagan tax cuts for the wealthiest Americans and 'legal persons' we will continue down this path.
"Buy low - sell high" is the mantra of succesful stock investors. When the stocks are down it's time to buy. When they are up, it's time to sell. Variations on the theme such as long term holdings, etc. will differ from this basic strategy, but that is what the wealthy do. I watch it all the time. Of course, it helps them if everyone believes what you said because then stocks become more plentiful and therefore lower in price (simple economics).
I couldn't agree with you more on your last point. Way too many people have been spoiled for way too long while the rest of the world got our scraps, and the piper is coming for payment. A massive equalization (redistribution of wealth) is headed our way. There will remain the same amount of wealth worldwide as before, but now we will be losing more and more of it to the poor in outher countries, and they will grow accordingly. It's already happeneing, and people like Geo. Herbert Walker Bush touted their New World Order long ago, and now it's being carried out quite efficiently.
I've met too many unskilled workers in Michigan that make as much as I do and I'm a corporate officer. These people live very high, buying new boats every couple of years, new cars, huge televisions with all the trimmings and systems, and all kinds of other toys. Now many of them can't pay for them and they are blaming the Chinese........ They should have saved their money and invested it like I did, because I'm doing fine. Don't own a bunch of toys, but doing well. Toys don't feed the family or pay for your retirement.
It's not governments job to save us from the mess we made of our own country. After all, most of you want lower taxes (which will result in leaner government and less government support), so how can you (in the same breath) say you aren't satisfied what the government is doing? Besides, "we the people" ARE the government. It's time to quite sniveling, get off your asses, throw the tea in the harbor and take our government back.