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Why Iím Draining My Savings to Stimulate the Economy (not satire?)
Yahoo Finance ^ | 7-18-13 | Rick Newman

Posted on 07/20/2013 12:47:16 PM PDT by dynachrome

For several years, the economy limped along because of me. I scrimped on everything, did it myself if I could do it myself, and hoarded money out of fear that the recent recession had another dip or two left in it.

Things are different now. I’ve turned my savings into spending, rung up thousands of dollars’ worth of purchases on my credit cards and in the process paid a lot more in taxes. And I’ll probably keep spending like this until I nearly run out of money.

In other words, I’ve bought a house.

All told, I could easily end up spending $30,000 this year that would have stayed in the bank if I hadn’t bought a home. (That’s in addition to the down payment on the house itself.)

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events
KEYWORDS: buybuybuy; economy; spendspendspend; stimulate
Get out there and spend all your money. Run up the credit cards. Save obozo's economy!/s
1 posted on 07/20/2013 12:47:16 PM PDT by dynachrome
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To: dynachrome

I hate Keynesians.


2 posted on 07/20/2013 12:49:42 PM PDT by 1rudeboy
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To: dynachrome

more like - spend it while its still worth SOMETHING


3 posted on 07/20/2013 12:53:18 PM PDT by GeronL
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To: 1rudeboy
"I hate Keynesians."

The thing is the people in government who say they are Keynesians are lying. Keynes himself said the government should harvest capital heavily from the citizens in the good times AND give it back in the bad times.

These so called Keynesians never get to the second part. Oh they hand out a few baubles and beads to satisfy their base and special interests but they never cut back taxes and they never give back to the people they harvested the capital from. They just keep spending on pork and yelling the rich aren't paying their fair share.

4 posted on 07/20/2013 12:55:41 PM PDT by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: dynachrome

A true ignoramus...

Does he really think the money one has in a bank as a savings is dollar bills sitting in a vault somewhere?


5 posted on 07/20/2013 12:57:33 PM PDT by aquila48
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To: dynachrome
Funding government. The most distressing part of buying a house is the tax bill. I paid nearly $7,000 in mortgage taxes for the privilege of buying a house, and the seller paid nearly $10,000 more in city and state transfer taxes. What’s worse is that many people don’t anticipate such large sums when they prepare to buy a home, because they forget the government has a big paw in the middle of the transaction.

Is this a New York thing? Where I live the deed transfer tax is 0.3% + $0.50, so only $600.50 for a $200,000 house. Recording a mortgage costs $28.

6 posted on 07/20/2013 1:04:38 PM PDT by KarlInOhio (This message has been recorded but not approved by Obama's StasiNet. Read it at your peril.)
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To: dynachrome
Funny, I just retired from my 32 year career at age 53 to start a new endeavour until I retire permanently. I moved from my fulltime home (and sold it) to my shore house fulltime, where the property taxes are 40% what I was paying. With the house, two cars and boat all paid off, the bills for insurances, utilities, and taxes are aroung $900/month. Leave a 6 digit salary would have been difficult a few years ago, but Its easy to do now that I see where this country is headed.

I refuse to be the takers' maker. I'm done with my high pressure career - on to something simple and enjoyable, no matter what the salary.

7 posted on 07/20/2013 1:06:59 PM PDT by Go Gordon (Barack McGreevey Obama)
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To: 1rudeboy
I hate Keynesians.

Just yesterday a FReeper told me that the approximately $110 billion in debt NY has is different than Detroit because NY has taxpayers.
8 posted on 07/20/2013 1:22:52 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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sfl


9 posted on 07/20/2013 1:25:47 PM PDT by phockthis (http://www.supremelaw.org/fedzone11/index.htm ...)
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To: 1rudeboy
I hate Keynesians.

I hate Kenyans too.

10 posted on 07/20/2013 1:31:23 PM PDT by VeniVidiVici (Play the 'Knockout Game' with someone owning a 9mm and you get what you deserve)
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To: cripplecreek

California thinks the same way. While the population in California decreases, the politicians just figure that the tax base is shrinking. It is not shrinking, it is evaporating. California gives away more money in unemployment and welfare per “client” than neighboring states. So welfare junkies, not being stupid, just lazy are moving into California as those who are hard workers and are being tapped to death move out. This is a double whammy that will drive California into an early grave. Its economy will be dead and buried long before the RATS in control ever get a whiff of the extent of the problem.

The producers are voting with their feet just like the leaches. Woe is California!


11 posted on 07/20/2013 1:37:29 PM PDT by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: dynachrome
Speaking of Obozo and stimulus:

Solar group audit finds $1.3M shortfall

Snip: A state-mandated audit of Willard & Kelsey Solar Group revealed the defunct solar-panel manufacturer could not account for how it spent $1.3 million of a $5 million loan funded by Ohio taxpayers.

Fifth Solar Company Fail - $240K per worker

Snip Willard & Kelsey Solar Group, LLC received $10 Million in federal stimulus money back in June 2009. (Fox Toledo). The total amount of federal stimulus dollars given to Ohio was $150 million so this represents almost 7% of the total Ohio received. It was boasted as a huge job creator, remember that?

Stimulus Money Received

1. $5 Million R&D loan from Ohio Department of Development
2. $10 Million loan from Ohio Air Quality Development Authority
3. $3.3 Million Job Creation Tax Credit
4. $701,000 grant to train 50 current + 250 new workers

12 posted on 07/20/2013 1:48:53 PM PDT by MamaDearest
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To: aquila48

Yeah, somehow he sees deposits in the bank as fortuitous for him when he wants a mortgage, but he seems to have a disconnect re: what his savings deposits might do when leveraged by banks for others.


13 posted on 07/20/2013 1:56:01 PM PDT by 9YearLurker
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To: GeronL
more like - spend it while its still worth SOMETHING

Looked at the US Dollar Index lately? It is worth something - unlike the losses people are taking who bought gold and silver recently.

14 posted on 07/20/2013 1:57:12 PM PDT by politicket (1 1/2 million attended Obama's coronation - only 14 missed work!)
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To: dynachrome

Buying a house is a sound move for most people. Want this guy is talking about however is a mystery to me.


15 posted on 07/20/2013 1:59:40 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: BenLurkin

he thinks he saved the economy


16 posted on 07/20/2013 2:00:34 PM PDT by GeronL
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To: dynachrome
I’ve turned my savings into spending, rung up thousands of dollars’ worth of purchases on my credit cards and in the process paid a lot more in taxes.

Consumption expenditure is buying not for the purpose of subsequent selling.It is buying for any other purpose than subsequently selling.It is unproductive.It constitutes the using up of money.Funds that are unproductively expended, as a rule, either do not return at all or return only in a smaller amount, and thus are simply consumed.Funds that are unproductively expended and consumed simply disappear from their owner's possession in the long run.

Productive expenditure is buying for the purpose of subsequently selling.This is the type of expenditure that stimulates the economy and accumulates capital. Accumulation of capital is a necessity for economic progress and increasing prosperity.Increased saving (which is not the same as hoarding) provides the funds for investment, which is the first step in increasing productive expenditure which increases capital accumulation and begins the pathway of capital formation.In order to increase saving, one must make the choice to decrease consumption

Increases in taxes is like increases in consumption because it decreases the amount of funds that would be saved. Anything that decreases saving has a negative effect on the rate of capital accumulation and economic progress and rate of increase in prosperity.

17 posted on 07/20/2013 2:05:49 PM PDT by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: dynachrome

Hey, Newman, I’ve an automatic 45 I would like to recommend that you get to play Russian Roulette with.


18 posted on 07/20/2013 2:08:31 PM PDT by YHAOS
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To: dynachrome

Stimulate the economy even more by breaking every window in the house


19 posted on 07/20/2013 2:11:01 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

worked for Debtroit


20 posted on 07/20/2013 2:12:09 PM PDT by GeronL
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To: george76
Stimulate the economy even more by breaking every window in the house

A former boss of mine had a tenant wreck his rental home. Tenant took all the fixtures, used an axe on the walls and doors. The boss spent a small fortune fixing it, employing many others. Yes, that stimulates the economy!

21 posted on 07/20/2013 2:46:49 PM PDT by roadcat
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To: roadcat; george76
Stimulate the economy even more by breaking every window in the house

A former boss of mine had a tenant wreck his rental home. Tenant took all the fixtures, used an axe on the walls and doors. The boss spent a small fortune fixing it, employing many others. Yes, that stimulates the economy!

Just in case you really believe that:

The Broken Window

22 posted on 07/20/2013 3:06:35 PM PDT by bankwalker (In the land of the blind, the one-eyed man is king.)
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To: roadcat

A friend of mine had a rental that suffered a similar fate. All the sinks and toilets were taken or destroyed, the light fixtures were taken, and the walls were axed to get to the copper in the wiring. The furnace and AC were taken with much damage to walls, floors and ceiling to accomplish this. What really made him mad was that the stove was destroyed for the wiring. Probably $2.50 worth of copper that cost him $850.00 to replace. Insurance didn’t touch the damage and the former tenants are long gone. The police laughed at him when he asked if they could help him locate the miscreants.


23 posted on 07/20/2013 3:41:19 PM PDT by Wingy
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To: george76
Stimulate the economy even more by breaking every window in the house.

I understand and appreciate the Walter E. Williams reference.

24 posted on 07/20/2013 4:37:25 PM PDT by elkfersupper
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To: YHAOS

I’m going to use that phrase in the future if you don’t mind.


25 posted on 07/20/2013 5:04:28 PM PDT by jy8z (From the next to last exit before the end of the internet.)
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To: jy8z

Be my guest.


26 posted on 07/20/2013 5:37:30 PM PDT by YHAOS
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To: 1rudeboy

I hate Kenyan Keynesians.


27 posted on 07/20/2013 6:46:31 PM PDT by Wildbill22 (They have us surrounded again, the poor bastards- Gen Creighton Williams Abrams)
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To: dynachrome

You still have a savings account?


28 posted on 07/22/2013 9:58:54 AM PDT by snowrip (Liberal? You are a socialist idiot with no rational argument.)
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To: politicket

I started buying gold and silver 8 years ago; it’s worth one hell of a lot more now than any other investment I have.

Attempting to find congruence between the recent losses in gold valuation against the relative value of the dollar is absurd.


29 posted on 07/22/2013 10:02:46 AM PDT by snowrip (Liberal? You are a socialist idiot with no rational argument.)
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To: snowrip

“still have a savings account?”

Consisting of Au, Ag,Pb


30 posted on 07/22/2013 4:20:48 PM PDT by dynachrome (Vertrou in God en die Mauser)
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To: snowrip
I started buying gold and silver 8 years ago; it’s worth one hell of a lot more now than any other investment I have.

I applaud you for purchasing those commodities at a low price. I've never said not to hold gold and silver. In fact, I believe everyone should put 10% of their assets into precious metals as a hedge against the current deflationary economy. If the economy turns inflationary then those holding will do quite well. Not so much over the long term in a deflationary environment.

Keep riding the price down if you want to. They are your assets to manage.

31 posted on 07/22/2013 8:56:13 PM PDT by politicket (1 1/2 million attended Obama's coronation - only 14 missed work!)
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To: Wingy; roadcat
...Insurance didn’t touch the damage and the former tenants are long gone. The police laughed at him when he asked if they could help him locate the miscreants.

Exactly why I would never, ever have a rental.
We need to find a way to legal start a database like Angie's list of Deadbeat Tenants & Landlords.

32 posted on 07/23/2013 5:21:29 AM PDT by beachn4fun (Face it - an aging body is not pretty...no many times you tack it up.)
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