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Strategies & Market Trends : Ask DrBob
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To: shoreco who wrote (54097)3/9/2002 9:24:08 AM
From: Louis V. Lambrecht  Read Replies (1) of 100058
 
I wouldn't be too excited about the stimulus package.
Although I agree on te 3 years average usage of material.
This explain, IMHO, why the Y2K acquired gear already is being replaced: either you need the replacement, or you don't.
The package will not create a new demand, but will give an easier opportunity to write down extra losses (2 years of amortization). For those who did not do so already: you always can sell any material for scrap before the end of it's booklife and account for the loss.
Only difference is 1/3rd amortization vs. 1/5th amortization a.k.a. more losses.
So, this measure is yet another political propaganda which costs very little and help the same, but gains electoral voices.
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