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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?


To: Lone Ranger who wrote (2505)5/16/2003 11:26:53 AM
From: Alan Bell  Read Replies (1) | Respond to of 10065
 
I wonder if the upcoming tax cut could be a catalyst for people to return to the market. While it is doubtful that it has much short term direct stimulative effect - the dividend cuts doesn't stimulate, the tax cuts will be eaten up by state tax increases, the general population doesn't realize that. They are being told over and over by President Bush that it is a stimulus. All the Republican Sunday talk show guests support this view and the democrats have to be quiet or they are against the economy improving. So the message is being accepted that it is a stimulus.

Because the state of the economy is substantially psychological, the economy could turn around because people act as if it is a stimulus even if it isn't.

So it could be a catalyst to a self-fulfilling prophecy.

-- Alan