Quote:
Originally Posted by zimmy
Money has flowed back into the market. It was below 7000 in 2009. It is over 12000, which puts it at historic highs except for the peak in 07-08 Money has not flowed into the middle class. Obama has cut taxes for small businesses, but probably could do more. I would want to see a payroll tax cut. In any case, the tax cuts won't mean much. Demand for products and services will. It is also why a tax program that has income taxes from working higher than investment income doesn't make sense. Get middle class people buying and spending and that would help. The economy will finally be stimulated when the housing market stabilizes and consumer confidence grows. 30% of home sales right now are foreclosures. It is killing the economy. Government spending at this time isn't killing the economy. Long term it is a problem. However, almost every economist will agree that a recession was not time to cut spending.
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Good points, Zimmy.
Some money has flowed back into the market becasue people have
nowhwere else to turn. Money Mkts pay close to zero, the newer CD's
don't keep up with inflation so if a person needs to save or create income
the market is prolly the only place to go even though the Dow only returned
3% last year. Risky stuff for short term needs.
Long term, good dividend paying stocks should help but will the volume
be there to keep the prices up? Crazy time for savers.
Fed says interest rates wil remain low until at least late 2014.
Great for the borrower if he can get a loan.