Salient to Investors:

Robert Auerbach at University of Texas writes:
  • Warren Buffett disagrees with the importance of taxes and for some investors he is surely correct.
  • Millions of people, including perceptive investors, are currently putting their money in accounts that pay around “a quarter of 1 percent” because the expected after-tax income adjusted for risk on alternative investments is too low.
  • US bankers are holding $1.418 trillion in excess reserves that they are not required to hold because they prefer a risk-free quarter of 1 percent from the Federal Reserve.

Read the full article at