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To: Clintonfatigued
And they wonder why those businesses are sitting on their cash reserves instead of investing.

No, they are expecting businesses to sit on their cash reserves. Their plan has been to maximize uncertainty so that companies will hold off on investing. That way, their government will be able to loot those funds directly instead of having those businesses waste them by investing them to make an evil profit. Right now, the Obama Administration and their fascist allies in the House and Senate are plotting a way to go after that capital as well as the long term assets of insurance companies and the private retirement investments of the American worker (e.g. 401(k) accounts).

13 posted on 09/27/2010 10:06:35 PM PDT by Hoodat (.For the weapons of our warfare are mighty in God for pulling down strongholds.)
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To: Hoodat

The problem is the uncertainty. Businesses don’t know what’s going to happen next, so they aren’t investing or expanding, just laying low until the storm passes. Since business won’t invest, cash reserves go up.

The last time this happened was during the Great Depression. FDR railed against the Evil Corporations for hoarding cash. The end result was the Undistributed Profits Tax (UPT) of 1936.

FDR recognized it was a mistake and repealed it in 1938.

Prediction: Some Dems will start proposing the UPT (or something like it) soon.


15 posted on 09/27/2010 10:58:18 PM PDT by Gideon7
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To: Hoodat

BTTT!


18 posted on 09/28/2010 12:12:47 AM PDT by dixiechick2000 (Remember November...I can see it from my house!)
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