Steve Wynn's Obama Rant

[Michtex]

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[UTChE96]

I suspect both. The degree depends on the business more than likely.

 

[LoveHorns]

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[THEU]

The major problems in our economy are not Bush tax rate cuts, nor Obama WH policies with regards to business. The main problem is very weak fundamentals, and some basic flaws in our economy. We are a consumer based economy, which has it's major major drawbacks. One other massive problem with this, is that we didn't do this based on purchasing power with real dollars, but rather on consumer debt and credit. This is why the credit market drying up had such a magnified effect on our economy, but not on all economies in the world.
This was seen in no greater detail than in the housing market, which is almost ALL debt derived. VERY few people own a house outright, with many many having put nothing down and so there is no large equity in the home. Home prices drop, and it is easy to be upside down.
Obama didn't do this, Bush didn't do this, and it didn't happen over night. Since the 1950's easy and cheap credit have been pushed upon the American people. Just think to the sign up for a CC in college and get a free tshirt or hat promos on campus. People get in over their heads before they know it and the average consumer debt in the US is astronomically high.
This is the root of our problems. Our government over the same time frame has acted in kind. Borrowing, borrowing, borrowing.. and fairly cheaply at that. As a kid I always thought high interest rates were good, because the only money I had with interest rates attached were savings vehicles that just earned more money faster. High rates are always good for the lender, never good for the borrower.
I know this is WM, so pardon my reference to Proverbs, but it just so fits. "The rich rule over the poor, and the borrow is slave to the lender.' Proverbs 22.7
We need a massive transforming of our economy back to a production economy and not a consumption economy. We need to create real products with real value and wealth. We need less borrowing and less credit, and more equity.

 

[Ag with kids]

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[bronco]

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[JohnnyM]

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[THEU]

Ag,
Please don't think I am saying we don't produce goods. I know we do. The main issue is that we consume far more than we produce. Now, I am a pastor. You could argue I don't 'produce' a good, but I do earn a salary. If I make 50k a year, but spend 70k in goods consumed, then I am a great consumer, but I am out-consuming my goods or actual worth. This is the issue. We are consuming more than we are making. The issue is debt. Whether the 'goods' produced are a tangible good or not, is not the point. The point is we are going deeper and deeper in debt to consume more and more with money we don't have.

 

[Hornin' In]

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I still just don't believe gov't policy is the driving force behind businesses not hiring and not expanding. I've had ONE business that I deal with tell me that gov't regulations have caused them to rethink their location, but they are talking state regs in California not federal regs. I just don't believe businesses would be hiring and expanding but for Obama. I think that's a cop out when the true problem is our economic system for the past few decades has been built on a faulty foundation of credit.
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I would have to remark that you clearly do not work with the community banking industry, the segment I am familiar with. Here is the scenario they are working within:
1. Required capital levels which are yet to be decided.
2. New caps on fee-based income which are yet to be decided.
3. A new consumer regulatory authority which will significantly impact their business model, but which yet has a leader or any particular structure.
4. A federal government which uses the media to “push them to lend,” while regulators from the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency REQUIRE them to reduce commercial real estate loan levels (their primary lending arena and single largest interest income source).

How do you build a business model upon that scenario? The answer is you don’t, you simply sit on the sidelines, realize marginal profits, and hope the smoke clears at some point to a degree you can operate with a reasonable degree of certainty.