I would hope that Congress would not assume that war will fix the economy or the market, it seems rather risky strategy that could pull the market down before seeing a benefit, and that might just put the market back to where it was prior to any attack.
I don't think the market is reflecting the economy or individual company fundamentals, but rather a loss of faith, which it in itself is bringing pulling the economy down.
Which brings me back to the war issue; will a war bring faith back? Will the following?
Cut corporate taxes to allow companies to shift taxes to dividends, which would up the valuation of the balance sheet and stock price. Eliminate the taxes on dividends.
Allow the public, but not company insiders, to buy stock during the next year without paying capital gains taxes.
Increase the capital loss to $6,000 this year and $10,000 next.
Prosecute company fraud. The laws are now on the books.
These are a few of my thoughts, and I'm sure there are additional things that would restore faith. Ideas?
Sam
