Off-Topic Stock Market & Crypto Discussion

[90scane]

Focusing on taxes, it means that when a tax law comes out, there are an army of very smart attorneys, accountants, and advisors that pore over the language to find a weakness that wil hit the bottom line. Because of how laws are drafted, how little they are actually reviewed by people voting on it, how complex they are, and how much **** gets loaded into unrelated bills, it is inevitable they will have issues to exploit. However, it takes money to find them, know about them, and take advantage of them.

I have spoken with @SpikeUM about this before, but one of the biggest failures of Trump’s economic package was the Tax Reform of 2017. It started out with a great premise - incentivize companies to repatriate foreign earnings so that we can actually tax it in hopes that would equal capital expenditures and more jobs. Unfortunately they did not close the loophole to ensure it was spent on that and a significant amount of that money went to stock buybacks. That’s one example.

2017 also taxes vets when the goal was to NOT tax them. (fixed now)
The double Irish Dutch sandwich is another loophole. (loophole closed now)
2017 implemented the removal of writing off property taxes so many pre-paid 2018.
Peter Thiel used his roth ira to buy Paypal stock at $.00037 to make billions tax-free (loophole closed now)

 

[90scane]

This year’s 3 bank failures held $532B in assets — more than all lenders that collapsed in 2008 crisis

The three failed banks this year held a whopping $532 billion in total assets.

nypost.com

 

[mr.h]

It’s time for more rate hikes, gentlemen.

 

[90scane]

It’s time for more rate hikes, gentlemen.

Hike rates- pause for 6-9 months while inflation gets down to 2% and we deal with a bad recession but only a 2-3 quarter one.
Pause now and wait 9-12 months while inflation slowly gets down to 2% with a risk for a bad and prolonged recession.
Drop rates and watch inflation come back fast.

You pick!

 

[Fluffhead]

2017 also taxes vets when the goal was to NOT tax them. (fixed now)
The double Irish Dutch sandwich is another loophole. (loophole closed now)
2017 implemented the removal of writing off property taxes so many pre-paid 2018.
Peter Thiel used his roth ira to buy Paypal stock at $.00037 to make billions tax-free (loophole closed now)

The repatriation really sticks out because it was such a great opportunity to raise significant tax dollars that otherwise wouldn’t have been there and then have those funds go towards springing our economy into the future (and not in a funny money print trillions kind of way). But it was one bite at the apple and they dropped the ball. Imagine if all of that money bought back went to R&D, capital improvements, etc. and the quality of jobs that would have created.

 

[mr.h]

Hike rates- pause for 6-9 months while inflation gets down to 2% and we deal with a bad recession but only a 2-3 quarter one.
Pause now and wait 9-12 months while inflation slowly gets down to 2% with a risk for a bad and prolonged recession.
Drop rates and watch inflation come back fast.

You pick!

We don’t know that. Pause and see. Consumers are being more selective with their purchases. Let supply and demand work it out. Crude oil is now in the low 70’s. The VIX is below 18 now. The expensive cut of beef are sitting in the case and being ground up for chop meat. Higher interest rates are hurting credit card purchases. Be patient.

 

[90scane]

Imagine if all of that money bought back went to R&D

The 2017 (as it stands) changes R&D to be a 5 year investment vs 1 year. Thus, massive additional tax revenue is happening with some just not aware. I'd expect that to get fixed for '23.

 

[90scane]

We don’t know that. Pause and see. Consumers are being more selective with their purchases. Let supply and demand work it out. Crude oil is now in the low 70’s. The VIX is below 18 now. The expensive cut of beef are sitting in the case and being ground up for chop meat. Higher interest rates are hurting credit card purchases. Be patient.

Consumers just told you to hold their beer:

Home prices are back on the rise as the spring market proves more competitive than expected

A sharp drop in new listings, adding to an already meager supply of homes for sale, is leading to renewed bidding wars.

www.cnbc.com

 

[redcane]

Bought more IEP today- $50.47, 15.85% yield $8 annually, paid @ $2 quarterly.

CE, you doubling down or getting out? I don't know what to make of Hidenburg.

 

[SpikeUM]

For rules and regulations to be effective, they have to clear, easy to enforce, and then actually enforced. When there are too many rules and regulations, they are often poorly understood, and poorly enforced. The tax code is a perfect example, they are going after people that have $500+ in stubhub or zelle transactions, because thats easy. However, its not where the big money is, because that would be too complicated to go after.

Same with banking; there are too many rules and regulations, which then arent enforced. Remember that all of the failed banks had recently received passing grades from the Fed, OCC, etc., plus their internal and external auditors. Maybe each outfit figured if there was something wrong, the other outfit would catch it. Lets not forget that Barney Frank was on the board of a failed bank. BOA has $1 Trillion in MTM losses; that is a number that should be a source of concern, and apparently isnt.

Lastly, did anyone have repercussions from the GFC? Angelo Mozilo, Stan O'Neal et all happily left with their humongous pay packages. Is anything going to happen now to the management and boards of the failed institutions and auditors? SVB didnt even have a Risk head, for crying out loud. SVP management and board should be held accountable. Two of the biggest bank failures in history happened under Mary Daly's watch, she also needs to be held accountable.

 

[SpikeUM]

Consumers just told you to hold their beer:

Home prices are back on the rise as the spring market proves more competitive than expected

A sharp drop in new listings, adding to an already meager supply of homes for sale, is leading to renewed bidding wars.

www.cnbc.com

If you bought a home pre 2022 with a super cheap interest rate, you are not going to sell that home, which is aggravating the supply shortage.

Tight Supply Fuels Demand for Newly Built Homes

Home builders are enjoying stronger-than-expected business this spring, capitalizing on the recent fall in mortgage rates.

www.wsj.com

 

[Cryptical Envelopment]

CE, you doubling down or getting out? I don't know what to make of Hidenburg.

Talk about awful timing, huh? Staying pat and rolling the DIV's for now. They are a short shop, it's an attack. Not saying they are wrong or right, just where I am on it today.

 

[90scane]

If you bought a home pre 2022 with a super cheap interest rate, you are not going to sell that home, which is aggravating the supply shortage.

Tight Supply Fuels Demand for Newly Built Homes

Home builders are enjoying stronger-than-expected business this spring, capitalizing on the recent fall in mortgage rates.

www.wsj.com

Ironically, I'm looking at selling 1-2 rentals to build a new primary residence.

 

[SpikeUM]

Ironically, I'm looking at selling 1-2 rentals to build a new primary residence.

Different circumstance.

 

[90scane]

Different circumstance.

In 2024 I would likely sell my primary to turn around and buy 4-6 rentals. Does that make the circumstance different? ha

 

[mr.h]

For rules and regulations to be effective, they have to clear, easy to enforce, and then actually enforced. When there are too many rules and regulations, they are often poorly understood, and poorly enforced. The tax code is a perfect example, they are going after people that have $500+ in stubhub or zelle transactions, because thats easy. However, its not where the big money is, because that would be too complicated to go after.

Same with banking; there are too many rules and regulations, which then arent enforced. Remember that all of the failed banks had recently received passing grades from the Fed, OCC, etc., plus their internal and external auditors. Maybe each outfit figured if there was something wrong, the other outfit would catch it. Lets not forget that Barney Frank was on the board of a failed bank. BOA has $1 Trillion in MTM losses; that is a number that should be a source of concern, and apparently isnt.

Lastly, did anyone have repercussions from the GFC? Angelo Mozilo, Stan O'Neal et all happily left with their humongous pay packages. Is anything going to happen now to the management and boards of the failed institutions and auditors? SVB didnt even have a Risk head, for crying out loud. SVP management and board should be held accountable. Two of the biggest bank failures in history happened under Mary Daly's watch, she also needs to be held accountable.

sickening..

 

[JD08]

For rules and regulations to be effective, they have to clear, easy to enforce, and then actually enforced. When there are too many rules and regulations, they are often poorly understood, and poorly enforced. The tax code is a perfect example, they are going after people that have $500+ in stubhub or zelle transactions, because thats easy. However, its not where the big money is, because that would be too complicated to go after.

Same with banking; there are too many rules and regulations, which then arent enforced. Remember that all of the failed banks had recently received passing grades from the Fed, OCC, etc., plus their internal and external auditors. Maybe each outfit figured if there was something wrong, the other outfit would catch it. Lets not forget that Barney Frank was on the board of a failed bank. BOA has $1 Trillion in MTM losses; that is a number that should be a source of concern, and apparently isnt.

Lastly, did anyone have repercussions from the GFC? Angelo Mozilo, Stan O'Neal et all happily left with their humongous pay packages. Is anything going to happen now to the management and boards of the failed institutions and auditors? SVB didnt even have a Risk head, for crying out loud. SVP management and board should be held accountable. Two of the biggest bank failures in history happened under Mary Daly's watch, she also needs to be held accountable.

Add in cost of compliance. Every company still has to report their employees and their health care coverage monthly as well as send employees and the IRS notification about what months they were covered during the year despite the fact that the mandates are gone.

 

[mr.h]

Add in cost of compliance. Every company still has to report their employees and their health care coverage monthly as well as send employees and the IRS notification about what months they were covered during the year despite the fact that the mandates are gone.

We get less benefits than every other westernized country and we have higher productivity. If anyone here still have grandparents or older parents, ask them about their working conditions ..

 

[mr.h]

7:00		USD	MBA Mortgage Applications(Apr 28)		-1.2%	-	-	3.7%
08:15		USD	ADP Employment Change(Apr)		296K	2.26	148K	142K

mortgage applications will rise when interest rates drop
we still have strong employment

 

[JD08]

We get less benefits than every other westernized country and we have higher productivity. If anyone here still have grandparents or older parents, ask them about their working conditions ..

My father was a WW2 vet and worked in labor relations after the war. He told me a great many stories, what would you like to know?

Also, I'm referring to the legal requirements still in place for a mandate that isn't. That's an unnecessary expenditure that every company has to pay for no purpose at all. It has nothing to do with working conditions or healthcare.