No. of Recommendations: 4
It will never happen because it has never happened before.

Maybe it's because I made the mistake of majoring in History but I can't help but notice what has happened before and use that as evidence that doing the same stupid things over and over again tends to turn out badly.

Of course pointing out the obvious gets you derision around some parts of TMF. Like on another board where someone asked why a certain stock that has had a tremendous run-up over the past several years is suddenly being sold off like mad. They heard rumors it had to do with the fiscal cliff but, why just that stock?

I pointed out that capital gains taxes are almost certainly going to go up next year, and a lot of people have made a lot of money on that particular stock. Now if you were going to sell in the next year or two anyway why would you wait until AFTER those taxes went up to sell? You'd simply be giving yourself a higher tax bill! That's not the entire reason for the stock going down but if you're looking for a reason related to the fiscal cliff, there it is. I also pointed out that this is why raising taxes does not automatically increase tax revenue... if people know a tax increase is coming they'll take steps to not have to pay it (well, most people, apparently if you're a liberal it is your patriotic duty to take it in the shorts).

One of the regular deniers got all huffy. 'If they sell now we get more money now, if they sell later we get more money later, blah blah blah.' Yeah, apparently common sense isn't all that common. Those people WOULDN'T be selling now if they didn't expect their taxes to go up for selling next year. They're making economic decisions based on tax policy, not the expected profits of the company in question. In other words they're reacting to the government raising taxes, not what they should be paying attention to which is how good the investment is.

Why liberals prefer an economy where you have to pay more attention to what the government does or doesn't want you to do rather than what is actually in your financial best interest is beyond me. They literally pine for the days when people would invest to LOSE money just in order to lower their outrageous tax bills! It's insanity! Well, it's liberalism, same difference.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.