DOW to 20,000 today?!!

[GodFearinGunTotin]

 

[Tombs]

That's exactly how the economy works. You pass a massive tax cut, during an already good economy, and if the market tanks - pain.

Show me where tax cuts influenced any stock negatively, and that fears of interest rate hikes due to inflation has nothing to do with the crash.

Good luck swimming upstream.

 

[Kutnupe14]

Show me where tax cuts influenced any stock negatively, and that fears of interest rate hikes due to inflation has nothing to do with the crash.

Good luck swimming upstream.

That wasn't said, nor implied.

 

[foszoe]

Because he knows there is no shortage of other voices salivating to credit him for anything bad?


Still up 6013 from when he was elected

Still up 5518 from when he was inaugurated

I'm long in stocks. I'll take it

Makes sense

 

[BugI02]

Makes sense

Who are you, and what have you done with the real foszoe?

 

[spencer rifle]

I'm really tired of the MSM screaming about a point drop, when that means nothing. Percentage is what counts. When you're up over 25,000 OF COURSE there are going to be "record" point drops. But that's a nothingburger with a large side of red herring.

 

[HoughMade]

Birds gotta fly, fish gotta swim, Dow gotta go up and down.

 

[foszoe]

Birds gotta fly, fish gotta swim, Dow gotta go up and down.

Dow only goes up. If it goes down they just change the stocks

 

[HoughMade]

Dow only goes up. If it goes down they just change the stocks

Well, it's a little more complicated than that, but they do encourage upwards trends over time.

 

[foszoe]

Well, it's a little more complicated than that, but they do encourage upwards trends over time.

Oh come on...Ockham is a hatchet not a razor

 

[Woobie]

That's exactly how the economy works. You pass a massive tax cut, during an already good economy, and if the market tanks - pain.

That isn't at all how economies work. You're conflating government fiscal policy with the overall economy. If you pass a tax break and the economy tanks, then you have decreased tax revenue. But that is an effect of the economy upon the government bottom line, not "how the economy works."

And to your preceding quote: if the 401k takes a hit, how is that worse with lower taxes than without?

 

[indiucky]

Birds gotta fly, fish gotta swim, Dow gotta go up and down.

Leviticus or Psalms????

 

[foszoe]

Just buying cheaper

 

[BugI02]

Dow back up +567. Futures show, shall we say ... optimism.

Trump gets the "blame" for this, too - right? Kutsistency would seem to require it

 

[foszoe]

Dow back up +567. Futures show, shall we say ... optimism.

Trump gets the "blame" for this, too - right? Kutsistency would seem to require it

Nobody needs to give him credit he will take it for himself

 

[BugI02]

Nobody needs to give him credit he will take it for himself

View attachment 63676

 

[Kutnupe14]

That isn't at all how economies work. You're conflating government fiscal policy with the overall economy. If you pass a tax break and the economy tanks, then you have decreased tax revenue. But that is an effect of the economy upon the government bottom line, not "how the economy works."

And to your preceding quote: if the 401k takes a hit, how is that worse with lower taxes than without?

I'll say it again, that exactly how the economy works. If you disagree, dig up Milton Friedman, and argue with him and the tooth fairy.

 

[Woobie]

I'll say it again, that exactly how the economy works. If you disagree, dig up Milton Friedman, and argue with him and the tooth fairy.

I don't recall Milton Friedman ever saying a tax cut during a boom is a bad thing. Bad for government on the downswing? Sure, but again, that's fiscal.

 

[Kutnupe14]

I don't recall Milton Friedman ever saying a tax cut during a boom is a bad thing. Bad for government on the downswing? Sure, but again, that's fiscal.

He didn't address it because, it's depended on place. Conventional economic wisdom is to pass tax cuts during down times to spur buying. If you pass a cut during a boom (possibly overheating the economy), and the market crashes, you are going to have issues. You can't double down with another cut. The result is a longer and more severe recession, approaching a depression. The reason why it's location specific, is because some nations will do what is necessary to pull themselves out of such; that would be by slashing govt spending. Many of the first world economies in Europe would do this. This would not happen in the United States. Milton Friedman explains it as:
"Suppose the government spends $400 billion, and raises $350 billion in funds labeled taxes. Who do you suppose pays for the $50 billion difference? The Tooth-Fairy? Hardly. You do."
So, it is reasonable to keep tax cuts in your back pocket until they are actually needed, because the potential downside is enormous.

 

[hoosierdoc]

I wonder why we even have taxes. If we can run a $9 trillion deficit per year (not ignoring social security and medicare) and bring in a few trillion in taxes, why does it even matter?