Page 3 of 3 FirstFirst 123
Results 19 to 25 of 25

Thread: Bi-Partisan Commission

  1. #19
    Super Moderator UGLY's Avatar
    Join Date
    Mar 2007
    Location
    Littleton, CO
    Posts
    4,934

    Default Re: Bi-Partisan Commission

    Quote Originally Posted by ODH View Post
    If your competitors are not pushing the same costs onto your customers, then your business couldn't.

    As far as political posturing, the whole point is to score political points with voters by attacking the banks, which are hugely unpopular. Whether he thinks it is just or wise policy does not really matter. He has been beat up enough for rescuing banks and the stimulus plan that he wants to make some moves that are popular.
    I like Obama, but I am not impressed by this action.

    Every business passes all operating costs on to their consumers. They have to in order to make money, this includes taxes.

  2. #20

    Default Re: Bi-Partisan Commission

    I'm not sure what you are trying to say ODH. If Obama taxes ALL of the banks, like I think he said, then all of my competitors would be pushing the same costs onto the costumer. If you really think that any business of any kind doesn't push taxes onto the customer, then you are naive.

    If he is only going to tax those that haven't paid, then he will probably find that legal battles will be held to see if that is just or not. I think he would be better off by letting them pay it off and leaving them alone. But, like you said, this is probably just posturing.

  3. #21
    World Champ ODH's Avatar
    Join Date
    Apr 2007
    Location
    New Hampshire
    Posts
    3,959

    Default Re: Bi-Partisan Commission

    Quote Originally Posted by UGLY View Post
    Every business passes all operating costs on to their consumers. They have to in order to make money, this includes taxes.
    Just not true... every company I have worked for works like hell to increase efficiency so they don't have to raise prices and lose customers when their costs go up. If the business environment is competitive, when you rasie prices you lose customers.

    Wages and raw material costs, in general, go up while the price you pay for manufactured goods goes down. This is due to competition and why capitalism works.

  4. #22
    Super Moderator UGLY's Avatar
    Join Date
    Mar 2007
    Location
    Littleton, CO
    Posts
    4,934

    Default Re: Bi-Partisan Commission

    Quote Originally Posted by ODH View Post
    Just not true... every company I have worked for works like hell to increase efficiency so they don't have to raise prices and lose customers when their costs go up. If the business environment is competitive, when you rasie prices you lose customers.

    Wages and raw material costs, in general, go up while the price you pay for manufactured goods goes down. This is due to competition and why capitalism works.
    It is true and the many many business owners that I know and am related to say so.

    Clearly there is market clearing price that dictates what people will pay for a product and the operating cost has to fall within a range that still allows a product to be offered at a price people will buy it at. So either you get low wages, shitty craftsmanship, unsafe working conditions, no health care for employees and so on but all costs of operation are passed on and built into a unit price.

    IF taxes are raised they have to make that revenue up somewhere, they have to.

  5. #23
    Olympic Champ RYou's Avatar
    Join Date
    Mar 2007
    Location
    New Jersey
    Posts
    8,376

    Default Re: Bi-Partisan Commission

    Charge a fee on banks to repay tarp funds

    The banks that received TARP funds are being charged a 10% per annum interest rate already. Any additional fee charged to repay the loan will undoubtedly be forced onto the customer in terms of higher fees and higher interest rates. Fundamentally, it becomes tax on those that use the banking system and what you ultimately pay will be in direct relationship to how much you have placed in the bank, or how you much you take out in a loan.

    Take a look at the feed your bank is charging this year versus two years ago. I have an old IRA that I have had with a bank for 15 years. They do nothing but hold the paper, no transactions, no work. This past September they doubled the fee I have to pay for the right for there computer to record the value. in my name.
    Life's not the breaths you take, the breathing in and out that gets you through the day ain't what it's all about. It's the moments that take your breath away.

  6. #24

    Default Re: Bi-Partisan Commission

    Quote Originally Posted by UGLY View Post
    It is true and the many many business owners that I know and am related to say so.
    Businesses will pass on however much of the attitional costs will maximize their profits. If the price of a good goes up then people buy less (all else being equal), so businesses have to figure out how much they can increase the price to offset the decrease in the quantity demanded.

    How much of the increase in price the customer will have to pay is dependent on the elasticity of the demand for the good. For some goods the consumer will pay just about all of the price increase, for others the producer will have to eat most of the costs.
    There's no such thing as a pretty good aligator wrestler.

  7. #25
    Super Moderator UGLY's Avatar
    Join Date
    Mar 2007
    Location
    Littleton, CO
    Posts
    4,934

    Default Re: Bi-Partisan Commission

    Quote Originally Posted by RYou View Post
    Charge a fee on banks to repay tarp funds

    The banks that received TARP funds are being charged a 10% per annum interest rate already. Any additional fee charged to repay the loan will undoubtedly be forced onto the customer in terms of higher fees and higher interest rates. Fundamentally, it becomes tax on those that use the banking system and what you ultimately pay will be in direct relationship to how much you have placed in the bank, or how you much you take out in a loan.

    Take a look at the feed your bank is charging this year versus two years ago. I have an old IRA that I have had with a bank for 15 years. They do nothing but hold the paper, no transactions, no work. This past September they doubled the fee I have to pay for the right for there computer to record the value. in my name.
    I agree with charging the banks only if they are handing out those big bonuses again, if they aren't and are still recovering then dont charge them.

    It seem odd to me that a bank who needed tarp funds are rewarding the people who got them into the mess to have to take the funds.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •