December 5, 2017

Doug Kass on Tax Reform bill

When history judges this moment, it will not be kind. Central banks, oblivious to the real reasons for low wage inflation, have created a monster bubble and the markets, rather than being frightened by this, have celebrated it.

The passing of a stimulative tax bill that will clearly worsen income inequality and, according to virtually all economists, lead to minimal growth while expanding deficits, despite a nine year economic recovery and 4% unemployment is irresponsible.

When the inevitable bust occurs, the public will justifiably reject corrective recommendations from those who have behaved so imprudently, thereby limiting the ability to re-stimulate.

No inflation? $450 million paintings, wild punting on bitcoins up tenfold by grandmothers at casinos, $100 million NYC apartments?

They have enriched the already rich and for moderate income people they have given them less than 1% in their savings accounts. 

Remember Joseph in the Bible? When things were good, he put grain of the silos to have sustenance for an eventual bad day.

via twitter