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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (60671)	12/9/2002 2:27:13 AM
From: paul_philp	Respond to of 281500

LindyBill: Here is a new essay from Pimco. Pimco is the largest bond fund company in the world. He disagrees with Altman on a couple of points about the state of the Fed and the problem of deficits. pimco.com Overall, I think Altman is correct. In fact, my biggest concern is not positive fiscal policy but a big fiscal policy mistake. The post-bubble crisis in 1929 was made worse by isolationist trade policy, tight monetary policy and an increase in the personal tax rates. This turned the post-bubble correction from a 2 - 4 year process into a deflationary depression. The normal next phase after the post bubble crisis didn't start until 1947. Bush spooked me with the steel and agriculture tariffs but I the new agenda for the WTO negotiations give me great hope that no serious mistakes are coming. I do like the idea of correcting the dividend tax situation. It should force companies to think more about generating real cash flow instead of stock price appreciation. How about the CEO getting no stock options and being paid a bonus from the potential dividends. That would really be a reform. Paul