morgan stanley says best thing for economy is trump tax cuts fail - will create bust like 2008

[dherd]

Morgan Stanley warned in a report this week that enacting aggressive tax cuts to businesses and individuals risks "overheating" the economy and causing stocks to "boom then bust."

The concern is that slashing the corporate tax rate to 35% from 20% could backfire by forcing the Federal Reserve to accelerate interest rate hikes. That in turn would raise borrowing costs for consumers and businesses, potentially unnerving the stock market along the way.

"Adding stimulus to an already strong economy likely stirs the Fed...pulling forward the end of an aging cycle," Morgan Stanley strategists wrote.

Morgan Stanley argues that "failure of tax reform" would be the "best" outcome for extending the economic and market recovery from the Great Recession.

"There is little precedent for large-scale fiscal easing at current levels of unemployment," Morgan Stanley analysts wrote. "Maybe this won't be a problem, maybe it will."

Other economists agree that it's an unusual moment to provide meaningful help to the economy. Normally, fiscal stimulus comes when economies are either in recession or struggling to avoid one.

http://money.cnn.com/2017/11/01/investing/tax-cuts-boom-bust-trump-morgan-stanley/index.html

 

[ohio herd]

Morgan Stanley warned in a report this week that enacting aggressive tax cuts to businesses and individuals risks "overheating" the economy and causing stocks to "boom then bust."

The concern is that slashing the corporate tax rate to 35% from 20% could backfire by forcing the Federal Reserve to accelerate interest rate hikes. That in turn would raise borrowing costs for consumers and businesses, potentially unnerving the stock market along the way.

"Adding stimulus to an already strong economy likely stirs the Fed...pulling forward the end of an aging cycle," Morgan Stanley strategists wrote.

Morgan Stanley argues that "failure of tax reform" would be the "best" outcome for extending the economic and market recovery from the Great Recession.

"There is little precedent for large-scale fiscal easing at current levels of unemployment," Morgan Stanley analysts wrote. "Maybe this won't be a problem, maybe it will."

Other economists agree that it's an unusual moment to provide meaningful help to the economy. Normally, fiscal stimulus comes when economies are either in recession or struggling to avoid one.

http://money.cnn.com/2017/11/01/investing/tax-cuts-boom-bust-trump-morgan-stanley/index.html

Thanks for reminding all of us that the economy is doing well under Trump

 

[extragreen]

Thanks for reminding all of us that the economy is doing well under Trump

Thanks Obama!!
Jobs created under Cheetos is lower than under Obama.

 

[ohio herd]

Thanks Obama!!
Jobs created under Cheetos is lower than under Obama.

so you agree then.... the economy is doing well under Trump. Glad to have you on the Trump train EG

 

[extragreen]

so you agree then.... the economy is doing well under Trump. Glad to have you on the Trump train EG

So you agree the economy was doing better under Obama. Glad to see you give the better president his due.

 

[raleighherdfan]

Thanks Obama!!
Jobs created under Cheetos is lower than under Obama.

The only important statistic here is that you were cutting jobs in your business while Obummer was president.

 

[WV-FAN]

The only important statistic here is that you were cutting jobs in your business while Obummer was president.

 

[ohio herd]

So you agree the economy was doing better under Obama. Glad to see you give the better president his due.

Ha ha of course I never said that. Nice try EG. Ten months into the Trump Presidency and the economy is doing well. Even you can't deny that.

 

[extragreen]

Ha ha of course I never said that. Nice try EG. Ten months into the Trump Presidency and the economy is doing well. Even you can't deny that.

Thanks !! Obama!!

 

[raleighherdfan]

Thanks !! Obama!!

Obama must have been tough on cabinet makers.

 

[i am herdman]

The only important statistic here is that you were cutting jobs in your business while Obummer was president.

He has you blocked. sharing

 

[raleighherdfan]

He has you blocked. sharing

Greed is a coward.

 

[GreenDuke]

So you agree the economy was doing better under Obama. Glad to see you give the better president his due.

I don't give a tinkers damn who was/is president. I'm doing great X-ter, how about you?

 

[extragreen]

I don't give a tinkers damn who was/is president. I'm doing great X-ter, how about you?

Don't bother me ,son. I'm watching Brent Cobb, Marty Stuart, and Chris Stapleton live and on stage in Charleston, WV.

 

[GreenDuke]

Don't bother me ,son. I'm watching Brent Cobb, Marty Stuart, and Chris Stapleton live and on stage in Charleston, WV.

Hillbilly Three Way.

 

[extragreen]

Hillbilly Three Way.

Fortunately for me, it's been more than a fair share of rock and roll. Brent Cobb sounded great, waiting on Stapleton. Marty is very talented, but not my sound.

 

[HFF-SLTX]

The biggest cause for concern of the Trump tax cuts has nothing to do with here in the USA. The biggest cause is what will it do to the Chinese economy and the ripple affect its bust will have around the world.

Having worked in China over the last 5 years, I have had the opportunity to witness how their economy works (it is corrupt and govt ran). There are cities the size of Columbus, OH that are total ghost towns. I personally think when the manufacturers start moving out of China and back to the USA, the bust that is ultimately coming to China is going to be accelerated.

Please note, this is likely to happen at some point in the future anyway. I support the cuts. Nothing I would enjoy more than not having to travel there anymore.

I could write a book on how they cheat and move their money out of their country to buy up other countries assets.

 

[extragreen]

And your electric bill will triple.

 

[19MU88]

When I study the proposal, before I render an opinion, I like to hear the views of a failed business owner from Wayne Co.

 

[HFF-SLTX]

And your electric bill will triple.

Oh Dtard, what will we ever do with you? I said that electric bills are likely to increase, possibly double or triple as we only have 1 baseline source of energy (gas) in this country and doing away with coal. That was also made under the assumption that our demand curve would recover. However, it has not come close to recovering. Part of that is due to the more energy efficient upgrades and part of that has to do that our economy has never recovered to where we had mfr's and plants driving demand due to a soaring economy. So the factors that I said had to be present in order for such a spike to happen never occurred. I really do not expect you to understand this but it is worth a try.

 

[extragreen]

I understand quite well, you were wrong.

 

[HFF-SLTX]

Greed, the things I said that would need to happen never did. But if you want to say "I was wrong" so be it. I will gladly put my record up against yours any day of the week.