What might happen to stock market indexes and why?
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03-24-2014, 11:47 AM
Post: #4
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Depend on what form the "reform takes". If the government borrows the money to make up for the lost revenue as social security taxes are diverted to the capital markets, the net effect on money inflows will be zero, so in the short run not much will change but the national debt and interest payment will rise over time. If the government raises taxes to cover the short fall it will increase the the inflow into the capital markets, but may slow the economy. I think the reason wall street likes the idea is not that it will raise the price of stocks but it will increase their income from commissions.
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Messages In This Thread |
What might happen to stock market indexes and why? - Paul B - 03-24-2014, 11:33 AM
[] - KevinStud99 - 03-24-2014, 11:38 AM
[] - meg - 03-24-2014 11:47 AM
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