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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (15819)	1/20/2003 11:15:56 PM
From: techanalyst1	Respond to of 57684

Yes, they adjusted the projected budget deficit for loss of stock market gains. It took them until early summer to figure out that cap gains were going to make such a difference... DUH! We discussed that here several times (as well as how we knew California was going to admit they were in deep doo doo after the elections). I'm willing to bet they haven't adjusted to less corporate taxes from the effect of restating previous earnings though and I'm even more confident that they have no fully accounted for the carry forward losses that so many people must have....... so don't count on lots of cap gains for quite some time even if the bull were to re-emerge. The feds never got much money from gains on the sale of homes but for only one reason..... most people who had gains only recognized them at the end of their lives because they carried forward the gains every time they moved and bought within a couple of years. Lots of people lost their houses in the Great Depression and the real boom in housing began post World War II. Therefore.... most people were likely not in a position to sell their last house and pay that gain. Silly government changed the tax law because they saw little revenue from it just when they probably would have begun to see it (since those who bought post Depression are probably now in a position to sell and not buy again). I know the vacancy rates are higher up there and rents are down significantly too, but they're even lower elsewhere. It's still on the expensive side to rent a comparable house there especially for people trying to work for startups that usually don't pay well, si'? Parents are up in arms down here over the school funding cuts....... but without cutting the budget significantly, I don't know how they can even come close to trying to repair the deficit. I'm beginning to wonder if they'll start to warn of declaring bankruptcy like Orange County did. TA