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American Capital Agency Corp. Message Board

  • ben9471 ben9471 Jul 10, 2011 4:46 PM Flag

    no debt ceiling deal - qe2 gone

    interesting week. no deal on debt ceiling and firstauction without qe2 on tuesday. i think it goes without saying that no deal on debt ceiling will put pressure onn rates and without the trasury stepping in to pick up treasuries when the market might be worried about a potential downgrade from S&P, could mean for an interesting environment for mreits where profits are high.

    good luch to all.

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    • olee, you may think that making over $106k is rich, but that may because you must live in a small town in the middle of nowhere. Making $106k may put one in the top 5 or 10% of all earners, but that hardly makes one "rich." Besides making that amount in high cost cities like NYC, SF, LA or Chicago, is middle of the road.

      The social security tax is one of the most regressive taxes and is an impediment to employers hiring. While higher earners may receive a larger SS benefit amount than lower earners, they actually get a negative return compared to what they pay in SS taxes. Do you know of another pension plan that is set up that way?

    • The mortgage interest deduction, for example, saves more than $5,000 a year for the typical household in the top 1 percent of earners. Most middle-income households don’t benefit from the deduction at all, because they instead claim the standard income tax deduction. And the mortgage deduction is the second-largest tax break for individuals, costing about $80 billion a year, more than the budgets for the Education Department and Justice Department combined.

    • Yes, you are correct about medicare. I am aware that the poor pay no taxes at the lowest bracket. It would be unjust to expect someone making 15k a year to pay the same percentage of tax as someone making 1500k a year. That is what the republicans want with their flat tax.

      President Johnson created the 'unified budget' in the late 1960s to disguise the real cost of the Vietnam War.[6] [7] President Johnson did not want to ask for income tax increases to pay for several ambitious government programs of that era (the Vietnam War, the Great Society War on Poverty, the NASA Space Race). Putting surpluses from Social Security overwithholding “on budget” (adding them to the general operating budget of the United States Government) so the overwithholding could be used to pay for other government programs would make the federal budget appear balanced. The resulting debt to Trust Funds would be presented “off budget.”

      I was referring the fact that the rich are exempt from paying SS above a certain limit.

      Social Security and Medicare taxes
      Social Security taxes 2010 2011


      6.2% on earnings up to $106,800

      4.2% on earnings up to $106,800
      Employer 6.2% on earnings up to $106,800 6.2% on earnings up to $106,800
      *Can be offset by income tax provisions

      12.4%* on earnings up to $106,800

      10.4%* on earnings up to $106,800

    • Canada is one of the least efficient universal health care systems.

      Take a hard look at Germany and the Netherlands.

    • Canada health care? I suppose that is why many who need surgery or MRI's come here? Canada gov did not force its banks to loan to those who could not pay the money back like our gov did. Try reading
      Reckless Endangerment
      , find a synopsis here

      For you liberals this book was written by a New York Times reporter. Maybe if more people became aware of how those that have supposedly are trying to repair the damage were actually the ones who caused the damage and are still causing future damage that we all will have to pay for.

    • olee,

      Most of the poor don't pay any taxes at all. I think the statistic is that the top 10% of earners pay over 50% of income taxes collected The rate on the middle class is in the low teens. There is no cap on Medicare and the cap on SS has been going up with inflation (it has doubled in my lifetime), but those taxes don't apply to non-wage income like interest, dividends and distributions from LLC's which many professionals use in order to avoid liability from malpractice suits.

      While it is easy to rail against tax breaks for the rich, the middle class also benefits from many breaks, including deduction of mortgage interest (for amounts that greatly exceed what the average house costs), the exemption for employer sponsored insurance, etc. Today's Wall Street Journal has an article.

      As for the SS trust fund, I think you are confusing a few things. I think SS has always been invested in Treasuries; what changed is that it is consolidated with the Federal budget. Whether it is consolidated or not, it would still be invested in Treasuries, unlike other "pension" funds that invest in many asset classes, like equities and real estate. The problem for SS was very foreseeable -- the benefits were increased over time, the lifespan of beneficiaries increased, but its investments could only grow by the rate on the Treasuries that it held.
      Most of the poor and middle class recover more than they paid in.

    • How Eric Cantor thwarted the Obama-Boehner debt deal

      "Cantor came in with a specific proposal that included cuts to Medicare without providing a dime in savings through closing special-interest giveaways,"

    • Oh sure they'll treat you. And you'll go into bankruptcy.

      Even if you have a nice stock portfolio, a 100k surgery will take a big bite.

      Cook country? You are not in touch with reality. Do you believe that only the rich and those with group health insurance should have access to quality care? Are they the only ones to receive care from university of chicago or northwestern?

    • The Canadian System?

      Over the years I have seen a lot of scorn heaped on the Canadian experience, and certainly there are issues, as nothing is perfect.


      Universal health care means peace of mind and a more than adequate access to modern health care when needed

      A well run, conservative, and very stable mortgage market without governmental exposure or interference has meant considerable fiscal stability

      Left to good management with what seems to have been adequate oversight, the Canadian Banks meet all stress tests and have not allowed such things as sub-prime mortgages - yet access to mortgage financing never waivered in the face of the liquidity crisis. Low downpayment Mortgages ( less than 25% and up to 5%) are guaranteed by a fully funded governmental agency (CMHC) and some private players ( I think it is GMAC), with the mortgagees paying a premium built on top of their mortgage rates for the protection given to the lending banks.

      Real estate has continued to grow in value, with some concern that it is too hot that has resulted in tightening of rates and increasing down payment requirements.

      Government deficits did occur, but progress is being made to bring them back to the positive position they were in before the crisis.

      On the whole it isn't too bad.

      Yes, and on top of that the parliamentary system has worked through liberal majorities, conservative minorities, and now a conservative majority. The vitriol stays even tempered and we do not seem to talk and bluster ourselves into ideological corners.

      I can see that the health care model is too far left for the US, but I do wonder why the mortgage model is not emulated.


    • Everyone gets treated by law regardless of whether they have health ins or not. Hospitals can not turn away those who need health care. Obama care is adding 500 billion in new taxes and yet is still forcing those like you in your age group to buy ins. The last I looked I thought we lived in a free country. If you like free health care so much and you have so much to offer why not move to one of the many free halth care countries. I can remember as a child my dad paying the doctor cash for the bill since most people did not have health ins. Then came medicare and prices took off to the point that you can not afford to be without ins. unless you are considered poor. Also in Ill. you have the Cook County hospital that treats all poor and this is paid for in your taxes. Gov complicates and increases costs for anything it touches and controls.

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