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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Michelino who wrote (1986)	6/8/2003 1:31:25 AM
From: Nadine Carroll	Read Replies (2) \| Respond to of 795420

When was the last date that the Nasdaq was at a level that you believe represented its fair value? Sometime before Alan Greenspan first spoke of irrational exuberance in 1995. Personally, I don't believe in "fair values" but only that prices reflect a dynamic and arbitrary sense of worth. Whereas I believe that business can be valued according to some non-arbitrary means, such as cash flow. Cash flow is the amount of money the business puts in your pocket, it is not an 'arbitrary and dynamic' number. Shares are shares of the business, they ought to be regarded as such, not as gaming chips in a casino. Unfortunately, they haven't been regarded as having anything to do with the underlying business for some time now. A long enough bear market will cure that. In any case, the cuts in dividend taxes (and capital gains for that matter), while currently fashionable in both parties, are simply wrongheaded. For one thing, lower rates on gains makes the honest wage earners among us look like chumps I find it curious that you first argue that lower stock prices are evidence of economic wrongdoing, then advance arguments that nobody on Wall Street will agree with. Everybody in finance and most economists are in favor of ending the double taxation of dividends and think that it will aid the market. It is opposed by Democrats because it's a progressive tax and they don't want to cut it.