Huge recession aftershocks incoming

[RationalExpectations]

Originally Posted by skeddy

too much acrimony with a Trump Presidency. Because McConnell will put the brakes on Biden's plans the market has less uncertainty. If Dems had won the Senate, the market would be doing just the opposite of what it's done the past few days. Housing market has gone bonkers the last few months. A lot of confidence in this economy. Of course it isn't working well for the non contributors, it nevr does and is not designed to.

We won't know if the Senate turns Blue until early January after the Georgia Senate runoffs.

If the Senate turns blue, Oregon's Sen. Ron Wyden is in line to be Chairman of the Senate Finance Committee. Wyden is a big fan of Biden's $4T tax increase -- and is a proponent of a wealth tax in the form of annually taxing unrealized capital gains at ordinary income rates. He's not kidding. Serious as a heart attack - the stock you buy & hold & don't sell? He wants to tax it.

[hikernut]

Originally Posted by Avondalist

Lindsay Graham said if Republicans hold the Senate then it's finally time to get serious about the deficit.

Not going to hold my breath waiting for that one. Republicans controlled everything for Trump’s first two years and they blew up the deficit. What a joke.

[leastprime]

^Most of our trading accounts are IRA/Roth. Our IRA/Roth gains are at marginal rates anyway. It's the losses in these accounts that I'm concerned about.

The relatively small taxable trading accounts are traded as short term trades because: 1) Market is highly variable; 2) Our age 70/73; 3) Trading accounts are in excess of our needs; 4) Expensive hobby.

I imagine most people in our wealth bracket need to see how much is this additional tax. Currently, trading accounts', oldest stock is 6 months, and it is negative 40%, a penny stock.

JMO, we need to have some 'rational expectations' on what debt and interest can buy us. I am not opposed to debt.