Click here: this stock boom is nuts but you can't fight the tape saluzzi: Tech Ticker, Yahoo! Finance
Elliott Wave Theory states the a Wave 2 can retrace up to 100% of Wave 1. We have now done that. If we go higher from here (above DJI 11,250) we have to go to the alternate count of another Wave 3 of 5.
Doom and gloom will again have to wait for later.
Tuesday, October 26, 2010
Monday, October 18, 2010
The Person or The Party
Contrary to what some may think, there is a tremendous difference in the two parties that we have to choose from in our most important elections. One of the greatest differences is each parties' attitude toward human nature. Most Democrats (Liberals, Progressives, Big Government Leftists, Statists, etc.) think they can CHANGE human nature to accomplish some desired result. Most Republicans (Conservatives, Libertarians, Small Government Tea Party members) know the best way to accomplish a desired result is to USE human nature. Dale Carnegie said the best way to get somebody to do what you want is to convince them that it was their idea.
One of the most important differences is in tax policy. When I wrote my senior thesis on this subject for a class on Economic Systems in 1966, the evidence was overwhelming then that reducing marginal tax rates was the best way to spur economic growth. Presidents Kennedy and Reagan proved it again by starting the greatest economic growth in the history of the world by reducing marginal tax rates. President Bush again used this to get us out of the recession after the dot.com bust and 9/11, until the bad government policy of encouraging banks to give mortgages to those who could not pay them back caused the housing bust. In all cases, reducing marginal tax rates resulted in increased revenue to the IRS and in some cases it doubled. Democrats say that giving tax reductions to the wealthy, who pay the largest percentage of taxes, is not fair no matter the economics. They also say that the wealthy will not spend their reduction and will just invest it or put in the bank. Actually because of the multiplier effect of our fractional banking system, this is just what is needed for sustained economic growth. Experience shows that tax rebates only have a temporary effect. We need both spending by consumers and investment to create jobs and sustained growth.
Some still think that they are smart to vote for the man rather than the party. That sounds noble but it does not take into account how our two party system works. Of course you want to vote for the man that best represents your politics. But you also want to vote for the party that best reflects your political philosophy and realize that when the candidates get to Washington DC or Tallahassee they will be under tremendous pressure to vote with their party. In fact if they don't, they will not curry favor with the party leadership, will not advance in the party, and will not get their choice of committees where most of the work is done. Don't be a single issue voter. Vote for the party that best reflects the majority of your views.
One of the most important differences is in tax policy. When I wrote my senior thesis on this subject for a class on Economic Systems in 1966, the evidence was overwhelming then that reducing marginal tax rates was the best way to spur economic growth. Presidents Kennedy and Reagan proved it again by starting the greatest economic growth in the history of the world by reducing marginal tax rates. President Bush again used this to get us out of the recession after the dot.com bust and 9/11, until the bad government policy of encouraging banks to give mortgages to those who could not pay them back caused the housing bust. In all cases, reducing marginal tax rates resulted in increased revenue to the IRS and in some cases it doubled. Democrats say that giving tax reductions to the wealthy, who pay the largest percentage of taxes, is not fair no matter the economics. They also say that the wealthy will not spend their reduction and will just invest it or put in the bank. Actually because of the multiplier effect of our fractional banking system, this is just what is needed for sustained economic growth. Experience shows that tax rebates only have a temporary effect. We need both spending by consumers and investment to create jobs and sustained growth.
Some still think that they are smart to vote for the man rather than the party. That sounds noble but it does not take into account how our two party system works. Of course you want to vote for the man that best represents your politics. But you also want to vote for the party that best reflects your political philosophy and realize that when the candidates get to Washington DC or Tallahassee they will be under tremendous pressure to vote with their party. In fact if they don't, they will not curry favor with the party leadership, will not advance in the party, and will not get their choice of committees where most of the work is done. Don't be a single issue voter. Vote for the party that best reflects the majority of your views.
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