We were sitting on a financial house of cards before the government ordered everyone to stay home while it printed money and before it decided to finance a pointless war in Ukraine.

There seems to be a conceit on Wall Street and in DC that "finance" can exist completely divorced from muscular work and real world production.

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Communists are just people who are terrible at capitalism.

I only predict tsunamis.

There is a variable debt crisis and I, don't predict, but have concern that it is going to hit very, very hard.

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https://twitter.com/DrKenCast

There is an argument to be made for that. It is done to encourage retirement savings though.
I understand how it works. Can you explain how it wipes out the money being "taxed"?

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You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

The government will always choose inflation over the real possibility of depression. The 19% rate since Biden has been in office might look low by this time next year.

While the FDIC is not directly taxpayer funded, it essentially is: banks are required to pay into it, so that cost is simply passed on to the consumer. Just like a corporate tax on McDonald's ultimately gets passed on with a more expensive Big Mac.

I would argue that if we're going to bail out banks every time they fail (SVB now and MANY in 2008), what purpose does the FDIC serve? We can simply take those FDIC fees and put them in a "lock box" and wait for the next bank failure to bail them out.

I don't get why we keep bailing these banks out--no one is going to bail out my company if we fail.

Doesn't matter why it is done. In a capitalist society should "evil Government" be providing tools to stimulate the economy? Shouldn't that sort of "stimulus" be provided by the rather "utopian" and "altruistic" private sector? Just Asking Questions


If you defer $300 in taxes today it will not be worth $300 in 2053. It likely will not be worth anything. Thus it has been effectively "wiped out" Meanwhile you are allowed to invest that very same $300 (and not pay taxes on it) and by the time 2053 comes around the value of it will have increased "exponentially" in all likelihood.

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Sure, but by that definition, all business is taxpayer funded.

Somebody has to fund something. Our company pays for insurance, we pass that on to the customer, who passes that on to the consumer buying that product. But, I don't consider us taxpayer funded.

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https://twitter.com/DrKenCast

The U.S. Dollar is pretty much worthless. They world can't really afford to recognize it though.

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Communists are just people who are terrible at capitalism.

Because you aren't.

You could completely remove government from that equation and things would still work the same way.

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Communists are just people who are terrible at capitalism.

Who pissed in your coffee this morning? LOL.

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https://twitter.com/DrKenCast

Tax policy is done with behavioral goals in mind all the time. We can get rid of all of that if you want.

It still doesn't change the fact that the money does get taxed.

This is why I say you don't know how it actually works because that is definitely not how it works. If I defer $300 in taxes now and it is worth $0 in 2053 then things have gone very, very, very badly for me.

But then you say the value is not $0 and instead has increased exponentially which is the opposite of what you've said too which makes this even more confusing.

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You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

This might be a tsunami, buddy.

What would be the best course of action? Get my 242 like tom? Will it matter if the money is more or less worthless?

You're 63 and I'm 59. There aren't going to be any golden years for us. We're gonna have a rough ride on our way out. It had to happen some time. We were lucky for the best part of our lives. I'm not gonna complain about it.

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Communists are just people who are terrible at capitalism.

They most certainly won't when the petrodollar is obsolete. China, Russia, Saudi Arabia, and now Iran are working together to try and make that happen.

It is, buddy.

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https://twitter.com/DrKenCast

This is actually what I stated. Which is very easy to "understand". That is for anyone that is actually trying to "understand" and not merely arguing for the sake of arguing.

Meanwhile you are allowed to invest that very same $300 (and not pay taxes on it) and by the time 2053 comes around the value of it will have increased "exponentially" in all likelihood.

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It's ironic that they tried to use FTX to kill Bitcoin and instead killed SVB which collapsed the banking system which is causing desperate buying of Bitcoin.

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Communists are just people who are terrible at capitalism.

It is different because the FDIC is a government entity, with two purposes--to prevent bank failures, and to provide consumers confidence that their deposits (up to $250k) are safe.

They have failed multiple times on goal number one, so I would suggest they have a very poor record of preventing failures.

On two, the government continues to go beyond the $250k limit, so what's the point of having a limit or indeed, the FDIC?

Finally, your company is free to choose whatever insurance company you want, and the amount of coverage you want to pay for. The FDIC is mandatory, as there is not another option that will provide the "FDIC Insured" decal on the door to bank.

The value of the tax payment would be directly correlated with the value of the investment.

The two can’t be separated.

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Because it is important for "consumer confidence in financial markets and services" to be restored. The only way for that to occur is for the Gov't to intervene in the restoration of it. Very few believe or have confidence in the private sector to do so.

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This is in direct contradiction to this though: "If you defer $300 in taxes today it will not be worth $300 in 2053. It likely will not be worth anything."

You are closer to being correct, but you also pay taxes on the initial $300 + any gains you got above $300.

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You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

Because he hit a pretty sweet ice cold exacta over the weekend and was only paid in shitty US dollars.

Do you not see or "understand" where the word "invest" was used as a way of illustrating how investment of the "deferred" $300 would cause it to "increase exponentially"? Just Asking A Question.

Thus it is not so much the value of the "deferred" $300 that is increasing in as much as it is the money that is made on the $300 that was "deferred" and henceforth "invested". Hopefully you can "understand" now it "works" Brick

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That's fair. But I don't think outside the government there would be a bank insurance market.

I still think it's a stretch to consider it taxpayer funded.

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https://twitter.com/DrKenCast

Basically these banks deal with a lot of large tech companies, they deposit lage sums for payroll and other large deposits..over the 250k fdic threshold.. . The banks invested in a safe treasury bonds and these goofy libs have tanked the economy with printing money and Ukraine and covid.. so the bonds are in the shitter with massive inflation.. the government is backing their losses

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Jesus, I just checked. You're right. Up almost 20% from last week.

We know that there wouldn't be. That is why "Gov't Intervention" is oh so important in this instance. But since it is Gov't "interference" that "WE" like, or more importantly, are willing to "accept", it isn't stigmatized in the same way that other interference on the part of Gov't happens to be.

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Your quoting tendencies makes for very stilted reading.

And I'm not sure what you are trying to say. You are stating that you've always been against the FDIC? And this is a position you've held for quite some time? Because you do not want the banks to pay into this and would prefer no recourse in times of potential failure.

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https://twitter.com/DrKenCast

I'm not saying that I'm against anything. What I am saying is that MANY that claim to be against Government Intervention are quite accepting of Government Intervention (such as FDIC) when it is beneficial to them.

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Thank you. Trading halted this morning on the bigger banks too...and the people who have been telling me the last 2 years has been fine said this was all fine, it's just not reassuring.



You're pissing in my Cheerios now. What should I do with my money?