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Nov 29 10

Rethinking the Bush Tax Cuts

by admin

“Extending the Bush tax cuts to those making over $200,000 over the next two years would cost us $700 billion. These cuts affect only the top 2% of the population, people who can well afford to see their taxes rise from 35% to 39.6%,” writes the editor of Bank Investment Consultant, Pamela Black, in her September 10, 2010 column.

Pastor Dan Penn was the chaplain for the Dallas Cowboys during Roger Staubach’s reign. The Pastor and Staubach were having breakfast together and Penn speculated that given a star quarterback’s income, he couldn’t possibly havve financial worries, to which Staubach responded, “I just write bigger checks.”

Staubach’s story illustrates that those with higher incomes still spend similar percentages compared to the less wealthy; albeit their mortgages are bigger, their car payments is bigger and they take more exotic vacations. On the one hand, that’s the stated goal of the stimulus money – to push the economy off its stalemate through spending. America needs people spending. Economists say a healthy economy has a high “velocity of money,” the rate at which it changes hands. Your boss or client pays you, and you spend it on dinner. The restaurant buys food, the grocer takes his kids…

To read more visit http://www.watchboom.com/index.php/articles/rethinking_the_bush_tax_cuts/

Jan 10 10

Eric Gemelli predicts market crash

by admin

The bear market has created a lot of anxiety, but there is good news around the corner.

Many investors have been brainwashed to think that knowing the future movements of market is impossible. The fact is markets consistently demonstrate repetitive patterns.

Investors like to think they make independent decisions based on rational thought and research. They miss the fact that millions of others are reaching the same conclusions at the same time in response to the same data. This is very similar to your teenager: they all want to act different together. It’s a type of mob psychology.

So, the reality is that people in a bull market see a nice profit and lock it in. This involves selling the shares, which causes the price to dip, giving another group that was sitting on the sidelines a chance to get in. This creates a strong surge as the people afraid of missing out start buying. And the cycle goes on.

The same happens in reverse in bear markets….To read more see: http://www.watchboom.com/index.php/articles/panic_rooms_are_not_for_stock_investors/