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Pastimes : Ask Mohan about the Market

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To: Zeev Hed who wrote (12946)	1/11/1998 12:56:00 AM
From: Brad Bolen	Read Replies (1) of 18056

RE: They are acting like fanatics in this matter and if they act too >late, they will not be able to stop a down spiral (BOJ are you guys > >reading this???). If that happens they will have a macro recession, > >and we will suffer as well (and our budgets will once more get out of >hand). I hope, I pray that they see the light before it is too late. > Zeev ...And this is the reason I don't understand anyone advocating tax cuts on the back of the 'surplus' we are supposed to enjoy this year. Its a risk thing-- given the inherent risk of a potential slowdown Asia has handed us and you rightly mention (layoffs/higher unemployment/lower tax revs) wouldn't a tax cut be unduly risky here? Don't get me wrong anyone, I don't mean to sound partisan, it doesn't seem to make good fiscal sense to me. B.

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