Is any wealth really being created by the Bush Tax Cuts....

[WCGreen]

As a fairly astute person on economic matters and because I have to pay attention to investment markets for my clients, I am truly convinced that there is a tit for tat aspect to this investment climate...

Spoiled by the obscenely high returns from the dot.com bubble, boomer investors fancy themselves savy instead of just being in the right place at the right time...

So they are not content with fairly steady 4%-5% growth. They want the bang in order to full fill their fantasy of retiring on an Island someplace free to hang glide, snorkel or cast a fly to catch that trophy trout...

Now here is what I mean by no growth in the investment...

Investors are chasing the boom or boomlet or the commodity of the hour in search of those gigantic late 90 returns...

So as everyone flocks to oil trying to capitalize on the instability in the Middle East, stocks go down...

As gold goes up because of the safe haven appeal of the metal, stocks go down...

As interest rates climb, investments in other areas fall...

The growth we are experiencing, if any, is probably due to chasing the return instead of investing in the long term...

Just idea that came to me as I watched Oil drop and the stock market climb over the last week or so...

So all that money from the Bush Tax cut could just running from one Wall Street firm to another...

[John Gauger]

1. umm....

No?

[EST]

2. Nope-merely channeled.

The supposed growth factor comes as a result measuring only one segment or reporting on a limited measurement.

[SteppingRazor]

3. Hey, that's no fantasy, dammit!

I WILL retire to an island where I'm free to snorkel all day and write all night, and nothing you can say will stop me!

Then again, I'm also not a boomer, so maybe it's just the youthful idealism talking.

[sandnsea]

4. Uhm, it's always been such

I think that was the point Michael Moore was trying to make when he said investing was rigged against the average guy. THEY don't "invest for the long term", they know there are investment cycles and suck the money out, up or down; while the average joes are playing a crap shoot letting their investment "ride". Anybody should have known gold was going to be the place to be after the bubble burst, and that interest bearing instruments would be the place to be as our deficit rose. The rich pass on wealth strategies the way the poor pass on grandma's secret pie recipe.

[Turbineguy]

5. Wealth is created

when a product that others desire is created. Bush, never having created any wealth could never grasp that. The Bush tax-cut transfers money and does not create wealth. He transfers money by borrowing from our children's and grandchildren's futures. It's possible that those who get all this loot utilize it well by building businesses that create wealth and purchase products with intrinsic value. But under our tax system, it is unlikely that those who get that money now will have to it pay back in an equal portion.

Even Mob Loan-sharks are more honest than Bush. The people who have to pay them money back understand the cost of borrowing the money.

[serryjw]

6. The Dot.com made ever investor a gambler

they no longer invest for the long term. They are looking to see what gill give them a large return this month.It just one large slot machine.

[Warpy]

7. You're right about dollars chasing the next speculative bubble

but they're not the dollars of the rich. They're the dollars of a middle class struggling to stay there.

The rich are more likely to be in on the ground floor of risky hedge funds, things that generally turn into Ponzi schemes as the upper middle class learns about them and the rich cash out.

Tulips, anyone?