Around The Financial Water Cooler
US Regulators Seek Tighter Controls On Money Markets
As their European counterparts were debating how to establish a single banking regulator, officials at the Treasury Department and other financial regulators were weighing options on how to increase oversight over money market funds. The Financial Stability Oversight Council (FSOC) has recommended capital buffers and a floating net asset value as remedies – both ideas rejected by industry forces.
FSOC maintains the regulatory power to take action to declare money-market funds a threat to financial security if the Securities and Exchange Commission does not act.
A Path Away From The Fiscal Cliff
Former Bush and Romney advisor Glenn Hubbard sees a route to avoid falling off the fiscal cliff. Two of Hubbard’s proposals are to raise average tax rates on upper-income taxpayers, which would be the prime source of revenue increases, and to “agree to a package of expenditure reductions to occur over the next 10 years. These would include decreases in the growth of defence and non-defence discretionary spending.”
Hubbard does acknowledge that these “are political choices,” and adds that “Obama cannot argue that we can right the fiscal ship simply by taxing the rich. Republicans cannot argue for low tax rates without being clear about where cuts must come from.”
Goldman Sachs CEO Sees Lower Tax Rates As One Key To Growth
Goldman Sachs CEO and Chairman Lloyd Blankfein says that to reinvigorate the American economy it will be crucial to keep marginal tax rates low, adopt a sensible immigration policy and aggressively pursue energy independence.
European Strikes Bring Transit To A Halt
Anti-austerity strikes once again sparked across Europe, resulting in transit delays and other work stoppages.
Are You Rich? Depends On How You Define It
Much of the debate surrounding the expiration of the Bush tax cuts has centered around the figure of $250,000. Essentially, any income above that mark is considered “wealthy” by Democrats who argue that earners above that level should see their taxes increase. But it depends on where you earn (and spend) that $250,000.
For example, $250,000 goes a lot further in Indiana or Iowa than in California or New York.