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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (163076)	11/9/2008 9:50:36 PM
From: The Reaper	Respond to of 306849

Keynesian economics could work in this environment with two caveats. First, dropping interest rates from here is not going to accomplish anything. Second, government stimulus, if injected, needs to go directly to the workers in the form of projects a la TVA. Bypass the banks, bypass the GM's of the country. $ injected via those conduits is trying to bluff again after somebody just called your first bluff, throwing good money being after bad. I think we're all agreed that deficit spending is in the cards for the immediate future. There is no reason to increase tax rates either on the corporate level or on the personal level. Once you change one variable in our system, all other variables will change. It is not a static environment. It is dynamic. I wonder when the politicos will understand that. Increasing corp. taxes will push corporations overseas faster with future expansion. Witness GM and their brand new $300 million factory in Russia just announced. Increasing taxes on the personal level will cause small business owners to forget about expanding and force them to cut back on expenditures. Just what is not needed at this time.