Archive for November, 2012:

General thoughts for a Wednesday

Written on November 28th, 2012 by Jamesno shouts

I’m putting together an end of year e-newsletter regarding tax planning, well as much as you can plan for a moving target.  It is sort of crazy that between our Fiscal and Monetary policies in this country you can’t really do any advanced planning.  You have to wing it with the understanding that it could all change at any time (and sometimes retroactively!).  I’ll have it posted to the main website sometime next week.

I have been reading a lot and most of it seems to be sort of gloomy.  I am optimistic by nature but we need to at least acknowledge the fact that the problems exist to find a solution:

- The Fiscal Cliff is in the media.  This is the mandatory $100Billion in gov spending cuts for next year (and each year for 10 years) and an across the board increase in taxes.  Everyone is screaming about the effect on the economy.  Yet if you step back and look at it, isn’t this what is needed in the longer term to get our fiscal house in order?  I’m no fan of higher taxes or slow growth, but I am realistic that we have an enormous debt that will have to be addressed at some point.  How long can we kick the can in order to keep the masses spending on Black Friday sales?  Are we so focused on immediate gratification that our leaders in DC will come up with a extend and pretend solution that merely postpones the inevitable for a little longer? (that just means the inevitable will be much worse economically.  look at Greece)

- The student loan debt is approaching $1 Trillion.  The amount of student loans that are officially 90+ days in deliquency is accelerating rapidly.  This is a mess.  Unfortunately unlike a house you can’t just give the keys back to the lender.  Student loans are not dischargeable even in bankruptcy.  These kids will be followed by this debt for most of their lives.  This bubble will pop soon.  Maybe college costs will then become realistic when there are few loans to pay for it.

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Time for a different approach?

Written on November 6th, 2012 by Jamesno shouts

Interesting article from a Harvard Business professor in today’s NY Times.  Discusses how we may need a paradigm shift to actually grow the economy:



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