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Notes to myself, possibly of interest to others.
-- Bill Northlich

Friday, October 5, 2012

Grading Rosenberg - Investing during the ongoing recession: A++: Politics: Z

Rosie yesterday:
"[Romney's] willingness to dismantle Ohamacare, his seemingly pro-business bent and sunply~side economics bias, his willingness to tackle entitlement reform, and his policy plank of refraining from raising top marginal tax rates at all — especially on dividends and capital gains — would very likely be met with wild cheers and high-fives in the financial markets."

  • Obamacare/Entitlements:  Rosenberg is Canadian and frequently touts the wonders of Canada's economy.  But, Canadian "entitlements" are vastly more comprehensive than in the US. 
  • Tax rates on top marginal tax rates or on capital gains:  Canadian capital gains tax is effectively 21.5%, compared to Obama's proposed 20% (up from 15%).  Top income tax rates in Canada for $250K+ earners are a minimum of 35% including provincial taxes.  Obama's new plan calls for a minimum of 36% federal tax, v. 33% now, not including state tax.
  • Supply-side economics:  Uh... Rosie is on record as noting that the actual problem these days is demand.  Supply-side for a de-facto recession?  Good idea!
Rosie appears to be the head of a grand conspiracy to keep US taxes low, thus the US deficit high, thus to blunt the US economy, while wage-earners and retirees suffer, so that Canada can cherry-pick people and acquisitions at will, becoming a major world economic power!  (Joke) (Bad).

Still, what's Rosie's message with these types of -political- utterances?  Especially, because, when the chips are down, he "does" demand (above), and Keynes.  He's either wildly inconsistant or very confused.  It of course could not be the case that the confusion lies elsewhere...

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