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To: TigerPaw who wrote (164354)3/10/2001 12:59:56 AM
From: G.M. Flinn  Read Replies (1) | Respond to of 176387
 
OT: tax cuts / writing Senators.

Yes, please do write your Senator imploring her/him to endorse a tax cut, just as Kennedy pushed through in the early 1960's when it was apparent that high taxes in a peacetime era were hindering the country's growth. The Clinton administration (with its massive tax increases) and Greenspan (with his "inflation on the horizon" paranoia and artificially high interest rates) have really created an economic mess which President Bush has inherited. The country needs a tax cut as a stimulus to get back on track.

This tax cut in all likelihood would not affect the pay down of the national debt at all. In good times it seems Washington spends what it takes in. In lesser times Washington spends more than what it takes in. Sadly, this is a time tested, proven fact. Unless the rate of growth in spending is addressed, the national debt will never be paid down.

P.S. re: DELL. I have to like their strong balance sheet and low cost production capabilities in times like this. When things improve (hopefully) I think DELL will shine again and I also have to think that at least one major competitor will throw in the towel. But still not buying back in yet ....



To: TigerPaw who wrote (164354)3/12/2001 10:39:18 AM
From: D.J.Smyth  Read Replies (3) | Respond to of 176387
 
tiger, why? look at the chart of the stock market over the last twenty years vs. the rising national debt. the comparative r-squared ratio is like .9 which is well above statistical significance.

they start paying off the debt and the market goes the other way.

Pres.R.Reagan's era began with increasing debt, and likewise, increasing markets

someone wrote a thesis on this; don't recall who.

so, if the national debt is a major key dependent variable relative to rising stock prices...? (one reason mentioned whast that it creates a backdoor for increased liquidity, as I recall)

Japan is also a case study for this