January 9, 2018

Is This Trump?

January 5, 2018

The White House Sting

I suggest everyone view the movie The Sting with Paul Newman and Robert Redford. ... https://youtu.be/LN2hBOIXhBs

In the movie the two main characters develop a scheme to get even with a crime boss. In the case of Trump and Bannon they "split" to try and divert attention that they schemed to take over the government. In the present con, Trump and Bannon temporarily won,  However, as Yogi Berra, the great deceased catcher of the New York Yankees once said, "It ain't over till it's over."

This feud is nothing more than an attempt to throw us off the track. The good news is Trump has no more that 12 months remaining in the White house. ... http://lstrn.us/2tfWVzi

December 13, 2017

Corporate Robbery

For some time I have been concerned about the consolidation of industries and in what may result. An obvious one is competition will decrease with prices rising as perhaps quality deteriorates. This decrease in quality can be partially offset by competition coming from overseas.

The recent reduction in corporate tax rates brings to light a bigger, riskier problem for the country. BLACKMAIL BY CORPORATIONS.

As Industries consolidate we become more dependent on fewer entities for job creation and growth.  With more dependence, comes more power to these entities. Power to control wages, taxes even our politicians. With control over politicians they control our laws. They could become so powerful they could end up controlling their own tax rates.

Some say government will, before this happens, step in to assure corporate tax rates remain high enough so the average citizen will retain their high standard of living. I am not convinced.

The world has changed. All nations have recovered from the devastation of World War II. Modern transportation, computers and the internet effectively has made the world smaller. Buick produces more cars in China than in the United States. Europe is presently the largest consumer market in the world. In a relatively short time Europe will be replaced by Asia as the largest marketplace. There are new innovations on the horizon that will make the world even smaller.

Another result of lowering corporate tax rates is wealthier individuals will use corporations as a tax planning tool. By owning a corporation one can effectively lower his tax rate to 20% and build wealth that much faster. When you need personal income you declare a dividend and transfer funds to your personal account.

As corporations consolidate they gain more power and influence. With nations competing for jobs, corporations will pit one nation against another reducing the nation's wealth at the expense of the consumer. Political power further transfers from nations’ capitals to corporate board rooms.

I foresee a day when a large, multinational company threatens to move jobs overseas if their taxes are not eliminated. This will be possible because of technology including the advances in transportation.

November 27, 2017

Paul Banicki Realtor

paul new pic.jpg
Southeast Michigan
Home Buying

Paul Banicki, Realtor
248-259-4187 | Paul@PaulBanicki.com

As demonstrated below, for a certain segment of the population the next six months may be the best time to buy a house. Over the coming year Michigan’s house prices are expected to rise between 4% and 5%. Applying this to a $150,000 house meansyou could potentially miss out on a $7,500 increase in value by delaying your purchase.
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First, housing prices are driven by supply and demand. The larger the demand for housing the greater the pressure put on price. At any point in time there is a limited number of buyers in the marketplace. The housing stock available is also limited. Typically it takes six months to build a house so today’s housing inventory is fixed. This is especially true for a northern state like Michigan because of our severe winters.

Second, many families wishing to buy a home have school aged children and do not want to expose their kids to moving and enrolling in a different school in the middle of a school year. This causes undue anxiety on their children. School is stressful enough without the need to make new friends in a new location.

Third, some families must move and are willing to negotiate more than in the summer months. With fewer buyers they become more flexible on price.

Paul Banicki - 248-259-4187 -  Paul@paulbanicki.com