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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: geewiz who wrote (28162)	5/15/1998 12:02:00 AM
From: Skeeter Bug	Respond to of 132070

don't know art. i do know that i don't like an irrational market. bad news is good and everything outside of an index is bad. very scary, imho. the fed seems to setting people up for a fall. just thinking out loud.

To: geewiz who wrote (28162)	5/15/1998 1:35:00 AM
From: Jack Be Quick	Read Replies (2) \| Respond to of 132070

But geewiz, is it the low rates that's created the bubble or the growth in the money supply? Am I the only one who sees the bubble in stock and housing prices as directly resulting from tax policies directly aimed at promoting it? Does the fact that one can borrow money paying tax deductible interest to purchase a house (not a car, boat or plane), and then sell that house later free of any tax on the capital gain have nothing to do with the inflation in housing prices? Does the fact that one can take out a home equity loan (again tax deductible) for money to invest in a tax deductible IRA in which all capital gains made in the account are fully tax deferred have nothing to do with the inflation of stock prices? Did the recent changes in the capital gains rates (no change, mind, to the continuing double taxation of dividend income) do nothing to add to the bubble? Is the bubble in these financial assets really all due to the Fed not raising the funds rate 1/4 pt? Best, John