Quote:
Originally Posted by FinkieMcGee
Lowering the capital gains tax is pretty much the stupidest idea ever right now. You do not want people saving or investing money right now, you want them spending.
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I am not sure this deserves a response, but for what it is worth, that which makes the economy robust is the continuous market of real estate spending. That is the single budget item of everones stimulus, that makes the economy go round,- proven over and over. I should not have to go into great detail to explain this, it should be self evident to anyone that is -not clueless.
Lowering the capital gains tax will move mortgages quickly. I can afford to lower the price of my investments and maybe even make a profit under current deflation. (I hesitate to call it deflation ,because it has to be real to call it deflation and for many sectors of the econoomy it was never real.)
Furthermore, I can vastly improve my personal situation, by moving my mortgage from 6.5% to 4% and also stimulate the economy. Much better than sending out checks for purchase of tennis shoes and WI's.
I am going to share a personal research statistic with you. I have never seen this in print. In fact, by contrast, I continually see the suggestion that rates are low, housing prices are low, so now is the time to buy.
These statistics can be demonstrated by simply google of a single page of statistics from government statistics.
You can make your determination for any of the fifty states, which will all be different but this is the case for Florida.
For the decades of 70s, 80s,90s the median price of a home has increased by an average of 3% per year. I was actually surprized by this, as I had heard and read on many occassions that the national average was 8%. May be, but not for Florida according to minor calculations that demonstrate 3%.
Here is the surprize. Taking into account that the price reduction from peak has been 25-30%, the
remaining inflation on the median price of a house in Florida from 2000 to 11/2008 still remains 78%. Meaning, to be at parity with the three previous decades, there would still have to be a decline of 48%.
Hypothesis, the politicians democrat or republican, that want to offer a solution that discounts this aberration, relative to wage increases, is full of sh...
So you folks that think throwing money to keep the balloon inflated, is going to solve this problem, well, I am going to refrain from calling you idiotic names. As my grandaddy, born in 1896 once told me, -by god ole boy you'll see!
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), companies/industries that are expected to catch fire from these government money infusions - US steel companies did well this last week in anticipation of infrastructure building plus protectionist provisions in the stimulus package.
