America spoke loudly and clearly about the kind of society it wants. It wasn't my choice, but we live in a republic and elections have consequences. I'll be interested to see how we expect to pay for the government we have elected. I accept the new rules, and my choice is not to participate. Expect to see folks like me and my ilk to go Galt. I'll use my firm as an example. We're a small real estate investment firm of retired Wall Street folks who used our earnings and contacts from our time in investment banking to take risks and grow a new business. We've been moderately successful, growing the firm roughly 18-fold over four separate investment funds. Over the past year, we've been scenario planning regarding the political landscape. Last night was the tipping point. It's simply going to be too much of a hassle to try to eek out increasingly smaller gains with higher taxes and regulation. So, we're out. This morning, we decided to execute our plan for an Obama victory and at least one house of Congress controlled by the Democrats. We cancelled our latest fund (we had raised a little over 70% of our target). Over the next 7-10 years, we'll close out the rest of the funds. This morning our firm has also decided to restructure our support positions to avoid participating in Obamacare. We have a small front-office staff, but a reasonably-sized support structure (property managers, custodians, security guards, mechanical specialists, etc.). They will now be part-time employees. It sucks for them, but as I said before, elections have consequences. As for me, I plan on finding enjoyment outside of work. I'm glad I got mine while the getting was good. Now I get to watch others scratch and claw to get what they can from a benevolent government; it should work well until the tab comes due. We'll see how many other people like me decide to do the same thing.
Just do it like all the other corporations.... make everyone a private contractor. That way you don't have to pay for shit.
He isn't leaving. He's cashing in his chips and now he's going to sit at the bar with a drink in his hand and a hot chick on his arm while the rest of us continue to sit at the table and go deeper and deeper into debt with the house.
The beauty of the market is that as some have tantrums, pack their toys and leave, others will figure out how to make a buck. Nobody is irreplaceable, including whiny finance-types.
In 12 -20 years the US government will now have to default on government bonds. I'd think of placing money overseas.
I wonder as well. I asked an economist I work with and he thinks we will restructure our foreign loans in ways that will be harsh, but left for the next people in charge to deal with (ie, pass the buck). As to us schmucks with T-Bills... in our investment portfolios, probably do to us what Obama did to the people who had GM Bonds- a few pennies on the dollar. Generally, but not always, when a government becomes insolvent a period of double to triple digit inflation follows for 4-20 years while the monetary system stabilizes.
You think it's a tantrum. We've had a year-long discussion about it, rational as can be. Our little fund that we just cancelled would have resulted in a few hundred new jobs. Good paying jobs with benefits for low-skilled people. They're not now going to exist. Remember the metric of including jobs "saved and created"? What about a metric for jobs that "would have been created"? Look, our little firm is a fart in a hurricane. However, I don't think we're alone or unique. I was just using us as an example. The American people have decided to demonize and demagogue wealth creators. That's cool. We don't have to play.
Probably a wise thing. Obama has shown himself to be very punitive in dealing with all peoples and businesses- unless there's political mileage to be gained as with the money he gave to unions...
agreed. I'm looking to further expand my outsourcing business. the business climate is ripe for this industry. plan to sit down this weekend and come out with a plan. A good percentage of my clients' taxes are going up or have gone up and they will be looking to reduce overhead.
I didn't say it was easy. Lots of jobs are hard. Lots of market niches are difficult to figure out. But the market does it, over and over and over again. I have faith in the market that somebody will come along and fill in the vacuum. This economy isn't driven by a few irreplaceable smart people at the top, and it never has been.
The market doesn't do it over and over again. The rich keep getting richer and the 99% keep getting poorer. Or so I'm told.
I dont think you get it, he is not alone in what he is doing. As I have rambeled on about, I know of four other businesses that are closing their doors. The guy that owns the place I work at is considering doing the same..its not just the chosen few..lots of guys are calling it a day.
Somebody already has filled the vacuum. It's the government. The smart money is on not bothering to educate yourself or innovate, get a government job and ride it all the way to retirement. That's the new model. Embrace it.
