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Author: rmhj Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 436606  
Subject: Re: Oh, my Date: 10/10/2012 2:29 PM
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AM: Ummm 1poorguy....
They will not walk away with their rich-guy tax cuts alone.
They will walk away with everything the 99% has left to us and we will all become beggars. Even 99% of the people who vote for them - even though they don't seem to realize what they are doing.


Here's an interesting take on the aggregation of wealth:

http://baselinescenario.com/2012/10/09/file-under-fascinatin...

What’s fascinating is that the model assumes that all households are identical with respect to patience (consumption decisions) and skill (earnings ability). Household outcomes differ solely because they have idiosyncratic investment opportunities—that is, they can’t invest in the market, only in things like privately-held businesses or unique pieces of real estate. Yet when you simulate the model, you see an increasing share of wealth finding its way into fewer and fewer hands:

[graphic]

As the authors emphasize, “it is luck alone – in the form of high realised random investment returns – that generates this extreme divergence.” In the absence of redistribution, either explicit or implicit, this is the kind of society you end up with.

rj
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