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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (21911)	8/1/2002 4:38:02 AM
From: smolejv@gmx.net	Read Replies (2) \| Respond to of 74559

>>but imagine how much better off we'd be now if our politicians had balanced our budget since 1980 instead of supplying huge sums of illusive "tax cuts" to help fuel an asset bubble<< Why tax cuts? I guess what started the idea, was another case of "rid my lips" - republican promise to "get the big government out the electorate's hair" or something of this kind -. However, that the tax cuts got through, was due to something like getting chewing gum out to fix the popped baloon - J6P would start to wonder much sooner about what actually is happening. One thing is sure still true:"It's the economy, stupid!" dj

To: Snowshoe who wrote (21911)	8/1/2002 7:11:18 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 74559

Snowshoe, >>> At low interest rates, any and all goods that provide part of their service in the future are necessarily and rationally bid up >>> Especially in nations that have borrowed $trillions to avoid paying taxes. Everyone is blaming Greenspan for the bubble, but imagine how much better off we'd be now if our politicians had balanced our budget since 1980 instead of supplying huge sums of illusive "tax cuts" to help fuel an asset bubble. Balancing the budget is a useless thing to concentrate on. What's important is the size of the budget itself. Prosperity depends on the degree to which the combination of government spending at all levels and the presence of non-profit economic entities, both deliberate and not, is closer to 10% of the economy than 90%. Regards, Don