Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (47760)	4/23/2000 9:10:00 AM
From: ted birnbaum	Read Replies (2) \| Respond to of 99985

Reading that post article brought to mind and focused an idea thats bouncing around my head on the wealth effect as it impacts the federal budget. I have been thinking for some time that the tax revenue created by trading has had a significant impact on our so called surplus. One of the factors I felt could lead to the reversal of the trend and a shrinkage of the money pool was a drying up of this revenue. What I had not considered is that a sharp downturn would cause margin players to be washed out with huge losses that translate into a double negative effect on tax revenues. Not only won't they get there cut of the profits but trading losses will offset revenues from other sources. I wonder just how much of the lost wealth effect will show up in next years budget ? I personally know of several people who were totally wiped out on margin and now owe money to their broker. A small blip ? or a flood ?