economic boom in 2003

[2bfabian]

From a earlier post I was informed that the president is doing great, and because of him helping them 30 big companies on the Dow that it has caused the stock market to be at 13000. although on the surface many may agree I don't find it to be as simple as that. I realize the Dow is above 13000 but if we were to accept this thesis we would realize that there are tough times ahead.Now in no means do I claim to be an Adam smith but I believe that the tax's cuts on personal income,dividends,and capital gains had much to do with the boom of April 2003 coupled with the some 315 billion dollars of (heloc)s by Mr. consumer who was taking advantage of of the new cuts on capital gains tax that started that real estate boom that so many enjoyed.Any classical economist would say that its the Government staying out of the markets which do the greater good.That is the supply side belief, no, I think the little man saw he had equity in his house and said you know I am going to take this money offf my house and go out there and get rich.With out the little man there is no sustain growth for anyone. The banks seeing this made available to the masses anyone who was breathing low interest loans on(heloc)s. Now most thought hell I flip this house yea give me the 3 or 5 year heloc but instead the economy turned south and the little man ended up holding 3 trillion dollars worth of (heloc)s. Many never locked there rates in and now its bank rupt city and you can kiss the real estate market good by for at least 3-5 years.I hope I am wrong but I don't think so.Hell I not smart but thats my story and I am sticking to it.

 

[Smiling JOe]

Many never locked there rates in and now its bank rupt city and you can kiss the real estate market good by for at least 3-5 years.I hope I am wrong but I don't think so.Hell I not smart but thats my story and I am sticking to it.

and on other threads, you are pointing fingers at Realtors not believing property in SoWal is valuable? You metion Adam smith and economics, yet in your other posts, you don't seem to understand the concept of supply and demand curves. Makes me wonder how much of your posts are sincere.

 

[2bfabian]

If by taking the Plato approach you assumed I would be locked into that belief I apologies. No, to the contrary, I was doing nothing more than throwing the sawdust into the air and seeing if one could conclude that to be the case. It's through augments that we unlock the keys to our problems. this is how I learn.

 

[Smiling JOe]

I disagree. Aguments cause people to get stuck in their own point of view. Arguing, and the lack of meaningful and purposeful dialect, result in many failed marriages and probably war. Meaningful conversation and discussion bring about understanding and empathy.

 

[6thGen]

Wow. Just when I think that you can't outstupid yourself, you do so in spades. I could offer about an article per week, but I doubt you will even read these.

http://article.nationalreview.com/?q=NWNkN2Y2ZmU2ZDFkOTk0YTQ0YjMwNjFmOGY0ZDVkNTA=

http://www.opinionjournal.com/editorial/feature.html?id=110002933

 

[Bob]

By the graph, the breakout in the Dow is the demise of real estate, not tax cuts.

 

[Smiling JOe]

By the graph, the breakout in the Dow is the demise of real estate, not tax cuts.

There is probably some truth in that, just as much of the same money which was pulled out of the stock market in 1999 was placed into real estate. Yes, the real estate market is down, but don't you think all of the stock brokers across America cheer that on?

 

[6thGen]

By the graph, the breakout in the Dow is the demise of real estate, not tax cuts.

You have to be kidding me. Show me the inverse of this. And are you saying that tax cuts did not affect the economy?

 

[2bfabian]

So here we go with the name calling. It is my opinion that you yourself fail to understand what supply sided tax cuts are. You are very good to let people do your talking for you but I am still waiting on you to give an original answer that comes from your personal experience.And never make the mistake that I wont read anything that will in someway enlighten me. It is many economist who subscribe to the supply sided theory say, in the long run it hurts the economy.Try to educate me not insult me. Doesn't
Friedman say the supply side tax cut';s stops Government spending?Don't you believe this goes against the ability for this country to fight a war.Wont something have to give? yea, the little man will have to shoulder the burden of this misguided philosophy.

 

[2bfabian]

Did I read the man had to take out a second mortgage in order to publish his book? So much for thinking(heloc) were not there to help this boom.