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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (376)	7/19/2000 8:31:07 PM
From: Logain Ablar	Respond to of 10065

Justa: FWIW I heard last night on the tube VP Gore is rolling out campaign advertising highlightening the economy over the past 8 years. I figure he and Bill will do their darndest to keep the markets robust (read the FED keeping liquidity up) till the elections and maybe into the beginning of the year. Tim

To: Justa Werkenstiff who wrote (376)	7/19/2000 9:04:02 PM
From: Dave-in-MarinCa	Read Replies (1) \| Respond to of 10065

Justa: Here's some more reading related to this topic; Kasrial/NTRS's July 13 monthly commentary on the interest rate outlook. <http://www.ntrs.com/economic_research/us_reports/useo2000/useo_14jul.html> Moto holds Kasrial in high esteem as do I, for his expertise and candor, both refreshing in this world of spin and spam. In this article, Kasrial says," Although many market analysts have erased an August 22 FOMC rate hike from their calendars, we still have it penciled in" agreeing with Bob Brinker's observation, ".... the FOMC is likely to discount the second quarter economic moderation as a weather-induced head fake and the July pickup as the true colors of the economy." Also, Dismal continues to highlight the risks of inflationary forces moving forward <http://www.dismal.com/todays_econ/te_071800.asp>. I think Bob's continuing analysis of real M2 growth is correct not because of the absolute numbers, but because real inflation is substantially higher than the BLS numbers (look at real estate, energy and food not to mention health care) effectively reducing real M2 growth to the negative and the corresponding negative effect on the equity markets. The market is at risk to this reality. And I believe Bob's current risk distribution on equities takes this all into account. I hope you will share your take on all of this. Dave

To: Justa Werkenstiff who wrote (376)	7/19/2000 9:15:39 PM
From: Xpiderman	Respond to of 10065

House Votes to Increase IRA, 401(K) Contributions Wednesday July 19 7:43 PM ET WASHINGTON (Reuters) - The House voted overwhelmingly Wednesday to allow bigger contributions to tax-favored Individual Retirement Accounts and 401(k) plans. On a vote of 401-25 the House passed the legislation even though the White House said it opposed the bill because it failed to address the retirement concerns of some 75 million Americans who have no employer-sponsored retirement plans. The legislation would raise the amount Americans could put into so-called Roth IRAs, named after the Delaware Senator who proposed them, to $5,000 from $2,000. The increase would be phased in over three years with the limit rising to $3,000 in 2001, $4,000 in 2002 and $5,000 in 2003. Roth IRAs differ from traditional IRAs in that the withdrawals, not the contributions, are tax free. The bill also increases the annual amount individuals can contribute from their salaries to 401 (K) retirement accounts to $15,000 from $10,000 beginning in 2005. The bill also allows people over the age of 50 to make 401 (k) catch up contributions of up to $5,000 to an IRA beginning in 2001. ``The workplace has changed, our retirement needs have changed and the pension system has changed,'' said House Ways and Means Committee Chairman Bill Archer, a Texas Republican, said in a statement. ``Now is the time to update our pension system and expand IRAs so that more Americans can have the opportunity for a safe and secure retirement.'' The bill included several other provisions including one that would shorten the vesting requirements for employer matching contributions. It would also increase portability of retirement plans by making it easier for employees to roll over assets when they change jobs. The White House raised several objections to the legislation, saying provisions that would allow higher business owners and executive contributions could lead to cuts in benefits for low and moderate income workers. The House passed the bill after rejecting a Democratic alternative that would have added a measure, based on a proposal by President Clinton, to provide refundable tax credits to low and middle income workers to encourage them to contribute to savings and pensions plans. The bill goes over to the Senate where Finance Committee Chairman William Roth, a Delaware Republican, said it enjoys strong support. ``It is great news that the House has approved this legislation, and passed it with truly overwhelming support,'' Roth said in a statement. ``Even though it is late in the session, I will do everything I can to get this bill through the Senate.'' The National Association of Manufacturers praised the legislation, saying it would make it easier for businesses to provide pension benefits to employees. ``Complex regulations discourage many employers, particularly small firms, from establishing pension plans,'' Dorothy Coleman, NAM's vice president for tax policy said. ''Legislation enacted in the past few years has begun to address this problem, but today's bill goes even further by easing the top-heavy rules and eliminating user fees for smaller companies.''