Comments on: California Is Awash in Cash, Thanks to a Booming Market

By: Not Suckered

Not Suckered — Mon, 03 May 2021 16:20:17 +0000

“Analysts say that with the state’s overflowing coffers, there’s no pressing budgetary reason to hold back a spending push that could help the state exit the recession with momentum. However, they caution against the state’s locking itself into any major ongoing spending programs based on the bulging surplus. After all, there is no telling when the stock market will sour.”

Where are the people in state and local governments wanting the extra money today used to better fund pensions, and to replenish or boost funds for road work, etc.?

By: Not Suckered

Not Suckered — Mon, 03 May 2021 16:17:18 +0000

Mr. SMITH: So right you are. I have discussed this with others for a number of years as inflation has developed. What are people paying now for things versus in 2008 or 2009?

“A hamburger, fries and coke,” you say: It’s already higher. I have told people, “Have you gotten anything at the drive-through at [burger place]? What are you paying now? What are the prices at the drive-through versus what you had to pay in 2008 or 2009?”

Inflation is the opiate of the masses, who want cheap money, and don’t realize they’re suckers.

I also say the same about grocery bills, as much or more often, for example.

By: Not Suckered

Not Suckered — Mon, 03 May 2021 16:11:04 +0000

1. California is dependent on income taxes, which are volatile and cyclical with business. Only the more stupid of the usual stupid would see a growing treasury as an opportunity to spend more, first and foremost, in response to extra growth given how the economy is behaving now, and with inflation underway.

2. I had not been able to write before, and JOE SMITH beat me to it already: Yes, we have inflation. The huge expansion of the money supply since 2008-9 (elitist term, “quantitative easing”) has contributed to it, with near-zero interest rate policy, and now vast spending by the feds far greater than the economic cost of the recession or the pandemic, Dems misreading the election results again and being opportunists as in the state.

3. A huge part of the vast amount of new money, by parties in the economy with big money, notably, has gone into real estate and equity securities (stocks, stock market).

4. In addition to the foregoing inflationary choices and actions, people in government and interested people on the left actually want inflation. Since 2008-9 there were some in government early on speaking and writing of “targeted” 2.5 inflation (the favorite figure) and the call has grown since the election and Dems in power.

5. Inflation has already been happening, as anyone’s bill or view of prices reveals, and makes of staple goods like Procter and Gamble are announcing price increases

6. At some point inflation can harm the stock market and likely then IPOs, backfiring against tech, not just the more frothy stuff, but other parties, too. It’s unclear if that can take the froth out of real estate versus big money in equities going to real estate.

7. When tech cycles down next, those who want gov to spend big will be the ones who are surprised and probably upset at responses that include reluctance to spend as much as before.

By: Joe Smith

Joe Smith — Mon, 03 May 2021 06:55:18 +0000

Anyone tried to buy anything, go to a restaurant or to get a haircut recently? Hyper inflation has started already. Congratulations on your voting everyone. Just wait until the government prints another 6 to 8 trillion dollars for their next folly. A hamburger, fries and coke will cost $50. Just what your $15 per hour salary needs….

By: HB

HB — Sun, 02 May 2021 17:31:00 +0000

So what you are saying is that investors and rich people pay a LOT in taxes and those taxes have created a windfall for the State. So the State won’t have to cut any programs (and can put some more money into the “rainy day fund). Also, what is left over after the Feds and State take their pound of flesh will leave the investor class with additional discretionary income what they will spend, which will push the economy into a faster and steeper recovery. You are welcome?

And, I believe that just around 50% of Americans are invested in the market in one form or another. For individuals, it is easier than every to invest — even a small about monthly. If you are not investing (or at least saving) in something, please get started.

You know, something just came to me, I never got a job offer from a poor person.