Thread FULL - U.S. Stock Market - Use New Thread!: Re: Greenspan brings reason back to wallstreet

» smile_1 - Re: Greenspan brings reason back to wallstreet

In response to message posted by smile_1:

Greenspan caveats:

fiscal stimulus should be cognizant of the impact on long rates...

above statement will probably get lost in the verbiage, unfortunately...

sounds like Greeney would prescribe cut cap gains tax and reduce or eliminate double taxation of dividends

here is what they should do:

http://www.suite101.com/discussion.cfm/i...

Date:
10/13/2001

Subject:
Economic stimulus - Bond Market & letter of concern

From:
Smile

Recipients:
President Bush ,
Vice President Cheney

Message:
God Bless You both and your families for your service to this country.

Please consider the following re: economic stimulus:

1) the biggest economic stimulus you could get with the least amount of cost is lower long term interest rates. The mortgage refinance market has the potential of putting back thousands of dollars in consumers hands which can be used for discretionary spending.

Funny thing is we were almost there.

solution: administration policies and statements consistent with sound fiscal policy promoting lower long term rates (retire 5, 10 & 30 year debt, no deficit spending etc).

If long term rates on 30 year mortgages fell below 6% you would see a wave of mortgage refis, which would work its way through the economy, and create real demand.

Corporations will spend on cap-ex when there is legitimate demand. Artificial supply created by tax incentives to encourage cap ex spending by corporations, is not beneficial in the long run, if true demand does not exist.

2) the problem re: getting the public back to flying is the security issues (see letter to TX reps for security concerns). solve this, and you will solve 75% of the problem.

Keep up the great work.

-- posted by smile_1