Biotech Values

[bladerunner1717]

The "government receipts" argument is pure "voodoo economics." It is an attempt to justify the "laughable, er, Laffer Curve which itself was a purely ideological, i.e. non-empirical, attempt to justify "trickle-down" theory economics. Those administrations that have employed the "lowering high income tax rates will bring in greater tax revenues" BS have brought America to the brink of economic disaster. Here's a chart showing the growth of U.S. debt relative to GDP under the various Presidents:

http://zfacts.com/p/318.html

The whole problem is the accounts deficit, the leveraging and the level of lack of savings/personal indebtedness in the U.S.

Here's what Stephen Roach, former chief economist at Morgan Stanley (and one of my favorite economists) wrote in 2006:

Stephen Roach tells us that “The Endgame” cometh, not yet, but with increased ferocity when it does. Based on a presumption that we are experiencing “bad growth” fueled by asset bubbles and a monstrous debt wave Roach states that the Fed, steeped in denial, is attempting to deflect attention away from its role in this sad state of affairs, and is running for cover—not wanting to be blamed for the shakeout.


Roach then looks forward: “I suspect the US interest rate climate is likely to remain surprisingly benign and, therefore, supportive of yet another wave of debt-intensive asset inflation. As a result, the housing and bond bubbles could well continue to expand, allowing asset-dependent American consumers to keep on spending” And adds that, “US property market are now starting to display all the classic symptoms of a mania…. Equally worrisome is evidence that ‘asset flipping’ is now reaching Ponzi-like proportions.”


Roach concludes, “Sadly, bad growth begets more bad growth -- until it’s too late. Following this week’s likely rate hike, the US central bank will have only 325 bp in its arsenal -- literally half the ammo it had five years ago when the first bubble popped. With the aftershocks of the property bubble likely to be far more worrisome than those of the equity bubble, this time the Fed may be ill equipped to face what is shaping up to be an increasingly treacherous endgame.”


My fellow Ihubbers, the "treacherous endgame" is now opon us.


The notion that somehow Bush's tax cuts have helped relieve the U.S's burden of debt (by talking about "government receipts") is pure right-wing ideology. (See chart of national debt growth under Bush in the above link.) The notion that Obama is somehow going after doctors to finance social programs is simply more right-wing ideology.

By the way, I read a report tonight that buried somewhere in the language of the $150 billion add-on to the bailout bill, there is about $500 milllion of incentives for pharmaceuticals and biotechs for R&D development. Is that true?


Bladerunner