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Magic Tax Cuts

So the Republicans gave a huge tax cut to the rich. The rich then invested that money in Bear Stearns. Current value: the same as the lint in your pocket.

Thank God we didn't waste that money building infrastructure, improving education or pushing a realistic energy policy.

This entry was posted by Michael Reynolds, on Monday, March 17, 2008. You can leave your response.

“Magic Tax Cuts”

  1. Blogger Unknown Says:
    2:24 PM  

    This comment has been removed by the author.

  2. Blogger Unknown Says:
    2:30 PM  

    If only it were that simplistic. I assume you are being sarcastic, otherwise get yourself to a library and check out Samuelson's classic Intro. to Econ. book (popularizer of the phrase "guns and butter") or Mankiw's book, now widely used. Tyler Cowen's blog, Marginal Revolution, is always a good read and he has been covering this story (and providing good links).

    FWIW, tax breaks had nothing to do with investing in Bear Stearns, potential huge rewards did, as it was always a highly risky investment. Its leverage ratio was 30:1, way more than average for the industry and it was that way for a long, long time. Those who invest in very risky ventures, now matter how "established" they are, ought not be too surprised if the walls come tumbling down upon them on occasion.

    (That deleted remark was mine - used google checkout for the first time the other day and it apparently gave me a new google id keyed to my mail address. Who knew? A bit scary that they have all that information, and track all my keystrokes as long as signed in to google, and the default is to be signed in once I use Blogger, and I see, check-out. Don't like it all and am confident if MSFT did it, there would be unceasing howls. But google is "better" as in "4 legs good, 2 legs better.")

  3. Blogger Michael Reynolds Says:
    6:13 PM  

    Yes, there's a degree of sarcasm on my part.

    But I also have a serious point to make: we are lectured constantly by conservatives to the effect that each and every dollar is better spent in the marketplace rather than by government. I'm not so sure that's true.

  4. Blogger amba Says:
    1:08 AM  

    Google is turning into Big Brother.
    Eep.
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