Replies to post #79191 on Zeev's Turnips Patch-No Politics (ZEEV)

[Sherlock356]

Zeev I agree completely. In coming out of the 82 recession they increased govt deficit spending to about 6% of GDP...and it worked quite well. The problem is that stimulus as you suggest, should be immediate, and with a finish date to return to lower deficits. The admin with their permanent tax cuts that wont even kick in till next year is not helping the economy when it needs it ...now...and will greatly expand future deficits imo. Hope thats not getting too political.

[Bullwinkle]

Zeev,

I am partial to the idea of being allowed tax write offs on credit card and car loan interest coupled with investment loss tax sales being upped from $3k to $6K. This would put a bunch of money back into the pockets of average americans who would in turn put it back to work in the economy (not to mention some debt might actually get payed down). It would not have to be a permanent legislative bill, but a dig yourself out of debt clause for say, the next 4 years? It seems to me that this would do much more than a monster tax cut or a repeal of double taxation on dividends that only seem to help those with the deepest pockets. Does this seem feasible or am I going over the top with this?

Happy Trading,
Bullwinkle

[mlsoft]

Zeev...

Very large deficit spending may help mitigate the depth or duration of the coming recession a bit, but I do not think it addresses the real problems of the economy which center on corporate debt, consumer debt, lack of demand, and too much capacity.

Consumer debt is the most important of those, and that will take time to heal.

Just my opinion, though.

mlsoft