at least it would provide some kind of incentive to go into the market cus right now everyone is scarred shitless and some people are puking everyday looking at losses rack up for 7 or 8 days in a row now?
That would be nice, but it's been a long time since the government has done anything in my favor, so I'm not going to bet on it. but again, it would be nice...
Don't kid yourselves - Obama or McCain will eliminate capital gain taxes or taxes on dividends if things get bad enough. Take that to the bank. Either one will do anything to prop up equity markets and ensure more capital inflows for corporations - it's essential. Not to make this political, but if Obama wins, Jamie Rubin (who I'm not a fan of, but that's more for personal reasons) will be a heavy in his inner circle, as he was (obviously) under Clinton, and Rubin is VERY Wall Street friendly.
Would be really nice, I think we are going to see a number or rules and regulations change over the course of the next year as this credit crisis unwinds.
Quote from S2007S: Heard today on fast money that an idea would be to drop the capital gain tax for at least a year to get more people back into the market and start buying again, think about it. Tax Break for the shorties, will only encourage them to short more
exactly. the washout needs to be also on main street. a country of whiners will make any recovery more difficult and much more longer. when certain individuals on ET lose their self control on the subject of US bankruptcy it is one small sign among many that the period of recovery will be quite long. The US is a different nation than it was in in 1929 or just prior to WW11. in 1929 a much greater proportion of people were still working on farms and factories. they could use their hands and produce tangible products. government ie a lesiure class(sucking off the private sector) with legally mandated entitlements was much smaller than today. today barely literate individuals are trading pieces of paper through electronics beeps convincing themselves that they are productive members of society. markets will recover in the US because price have been pushed down to an extreme. this is not a call of the bottom. perhaps there will be a trading range. the standard of living in US and EU will stagnate at best or most likely be lower.
Question: Why is shorting a stock allowed? Is there any other industry that allows this type of transaction Think about it...you are selling something you do not own.... In real estate it is a felony, LOL..... Hedging can be addressed through the option/future markets... You can't rent a car from Hertz and then sell it!!!! A bad company will simply fall of its own weight as the longs sell and move on....this is a natural order of the market.... Shorting is unnatural.....brings in an artificial element to the equation .... Would welcome intelligent comments...... SteveD
Actually some guy in my town is wanted by the cops for doing just that. He used credit cards to rent expensive luxury cars then pawned them off to the chop shops. This guy is so ahead of the curve.