What will happen now, I think we're all in agreement that the tax cuts is a good reason why we are experiencing this bull market, and a good economy. So now that there is a threat that those might not become permanent, how will the market react?
By going up, because the fiscally irresponsible Congress just got booted out. Bush isn't Reagan. This tax cut was a joke and we're rallying because it's going away, and maybe we'll finally have some fiscal responsibility again. Something we've been missing for 8 years.
Maybe this isn't so bad, we have gridlock so major spending bills will be hard to pass. however bush doesn't veto anything so this may actually be the worst combination for increased spending it could possibly exist, big goverment here we go
Now wait just a second, you sound just like the goldilocks running around on wall street. The juice that took this market up was the deficit spending by the fiscal irresponsible. And the free money Greenspan provided, that gone!
Tax cuts don't come up for a vote until 2010, land may or may not be extended. We'll have to give the new Congress some time to figure out reality from fantasy between now and then. The market will likely, and hopefully, go back to being valued based on real numbers, not just D.C. boasting and promises. I guess we just have to trade without opinions for a while. c
Dont tell me these markets are rallying because the democrats took the house are 1 seat from taking the senate....
There was a goldilocks running around wall street? That wasn't me, I'm not on wall street. Free money Greenspan provided? We just got no raise from the Fed, and there's talk of CUTTING rates in Spring now due to the housing mess. The juice that took this market up was the money everyone who got out of real estate had nowhere to dump, so it went to funds. Funds now have to spend it. Simple as that.
why is everyone so against the increase in deficit spending when we aren't even in a inflationary state? And doesn't anyone remember the economy BEFORE the tax cuts?