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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (129427)	12/10/2000 2:25:05 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1570373

Ted, RE:"But I would still contend that that the change in the real estate capital gains law was at best a secondary reason for the Fed's concern over inflation" It's well known that tax cuts are inflationary. They free up money. RE:"It was the pressure on wages in tight labor markets coupled with oil prices creeping up that prompted the fear of inflation with the Feds" Ask yourself where a bunch of the money came from to pump up wages and increase oil consumption. Don't underestimate the power of an all out tax cut as on Real Estate. Some people had 20-30k in a house that was worth 300k, 500k and up. The idea they could take that gain, TAX FREE, was a big reason to sell, build new, downsize...pocket some money...put it in the market, whatever...even buy a gas guzzler... Jim