Wednesday, July 16, 2008

A simple tax break and bank bail out plan from Leisa-land

Fire, 1566
Giclee Print
by Giuseppe Arcimboldo

I awoke this morning with a somewhat foolish thought in my head. In order to shore up the banks and give some tax breaks the government should have merely done this: Suspend or reduce the capital gains tax (or give preferential treatment to s-t capital gains) for people who liquidated their investments and then placed those proceeds into banks that needed some shoring up. Basically, provide an incentive for people to put money out of one pocket and into another. Naturally, there would need to be some brain in the center so that the infusion is not so willy nilly that it would be useless.

Lots of other caveats I'm sure, but I truly wonder why I awoke with this odd thought clearly at the forefront of my mind.

I hope that you will click on Arcimboldo's link above and see some of his other innovative collage paintings.


nice said...

Heavy hands in this market...

Force bank shares - up
Oil - down
Gold - down right on cue

The market will probably be forever changed now - with the curtain withdrawn and all the players 'revealed' - their intentions laid bare.

This becomes less and less a market and more and more a guessing game - as to where and when the next elephant comes in the room...

Having central banks trying to control financial markets rather than leaving that to the owners of capital --> puts people in direct conflict with one another

All this is certain to guarantee years and years of volatiliy and probably years of 'trading range' markets.


nice said...

Most of the stocks that are up are those that were heavily shorted...

I'm not a bottom caller - however I will go on record as saying that any 'meaningful' bottom in a stock market cannot be achieved by intervention

That being said 'nice' to see some green

Hourly S&P trend not turned up yet...


nice said...

OK OK a 10% gain in XLF - we get the message Hank&Ben LOL

Round 2 goes again to the Hank&Ben


Bruce said...

When should we expect the black helicopters?