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Speaking of low taxes, I don't believe that the author noted at the bottom
wrote this, but it is an interesting analogy.
Sometimes Politicians can exclaim; "It's just a tax cut for the rich!", and
it is just accepted to be fact. But what does that really mean? Justin case
you are not completely clear on this issue, we hope the following will
help.Tax Cuts - A Simple Lesson In EconomicsThis is how the
cookie crumbles. Please read it carefully.Let's put tax cuts in terms
everyone can understand. Suppose that every day, ten men go out for
dinner.The bill for all ten comes to $100. If they paid their bill the way
we pay our taxes, it would go something like this:The first four men
(the poorest) would pay nothing.The fifth would pay $1.The sixth would
pay $3.The seventh $7.The eighth $12.The ninth $18.The tenth man
(the richest) would pay $59.So, that's what they decided to
do.The ten men ate dinner in the restaurant every day and seemed quite
happy with the arrangement, until one day, the owner threw them a
curve."Since you are all such good customers," he said, "I'm going to
reduce the cost of your daily meal by $20."So, now dinner for the ten
only cost $80. The group still wanted to pay their bill the way we pay our
taxes.So, the first four men were unaffected.They would still eat
for free. But what about the other six, the paying customers?How could
they divvy up the $20 windfall so that everyone would get his 'fair
share'?The six men realized that $20 divided by six is $3.33.But if
they subtracted that from everybody's share, then the fifth man and the sixth
man would each end up being 'PAID' to eat their meal.So, the restaurant
owner suggested that it would be fair to reduce each man's bill by roughly the
same amount, and he proceeded to work out the amounts each should
pay.And so:The fifth man, like the first four,
now paid nothing (100% savings).The sixth now paid $2 instead of $3 (33%
savings).The seventh now paid $5 instead of $7 (28% savings).The eighth
now paid $9 instead of $12 (25% savings).The ninth now paid $14 instead of
$18 (22% savings).The tenth now paid $49 instead of $59 (16%
savings).Each of the six was better off than before. And the first four
continued to eat for free.But once outside the restaurant, the men began to
compare their savings."I only got a dollar out of the $20,"
declared the sixth man.He pointed to the tenth man "but he got
$10!""Yeah, that's right," exclaimed the fifth man. "I only saved a
dollar, too.It's unfair that he got ten times more than me!""That's
true!!" shouted the seventh man."Why should he get $10 back when I got only
$2? The wealthy get all the breaks!""Wait a minute," yelled the first
four men in unison."We didn't get anything at all. The system exploits the
poor!"The nine men surrounded the tenth and beat him up.The next
night the tenth man didn't show up for dinner, so the nine sat down and ate
without him.But when it came time to pay the bill, they discovered something
important.They didn't have enough money between all of them for even half of
the bill!And that, boys and girls, journalists and college professors,
is how our tax system works.The people who pay the highest taxes get the
most benefit from a tax reduction.Tax them too much, attack them for being
wealthy, and they just may not show up at the table anymore.There are lots
of good restaurants in Europe and the Caribbean.David R. Kamerschen,
Ph.D.Distinguished Professor of Economics536 Brooks HallUniversity
of Georgia
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=delta88343@xxxxxxx
href="">delta88343@xxxxxxx
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, March 06, 2004 5:36
AM
Subject: Re: [RT] sp500/nasdaq top
In a message dated 3/5/04 12:08:51 PM Eastern Standard Time, <A
href="">mr.ira@xxxxxxxxxxxxx writes:
<BLOCKQUOTE
>
The government still claims that there is no
inflation. Gas prices are $2.50 per Gal. here. Almost everything
that is purchased is transported by truck. That cost will also be on
the rise.
Housing costs continue to rise. Just down the
road in Palo Alto the average home cost is $985,000. Health care costs
and other insurance costs are skyrocketing as is the commodity
index. How much longer can the government ignore what is
happening?
Low interest rates have not created new jobs
here, but India and other foreign countries are having a boon. We
are shipping our jobs overseas where the service and
manufacturing costs are far less. I have to admit, so is the
quality of service provided by the overseas support.
Just some thoughts.
Ira.\
This will continue to happen because it has little effect on the "Haves."
Their petrol bill going from $50 a tank to $70 a tank on their SUV is barely
worth discussing re: the household finances. They work for companies that
pay their health insurance, or at least the bulk of it, and the large
house they own has doubled in value the past 5 years. Life is good!
However, for the poor "have nots", they will continue to suffer regarding
the above. Their meager earnings continue to get eaten away by the massive
inflationary spiral going on. There is no one truly representing
them in the media because they are mostly affiliated with one party. If
rolls were reversed, and a democratic president was in office with the same
things going on, you know darn well the Republicans would be holding
congressional hearings, having investigations left and right regarding
everything that is going on in the energy markets, Bush and Cheney's
connections to Haliburton and the massive energy manipulation play that is
going on etc.
I'm not trying to be political here, but thats the reality. There is
absolutely no direction, no vision, no goal, no leadership within the
democratic party. No one is raising any stink about what is going on, you hear
nothing about it in the media and it literally borders on the criminal.
I am not politically affiliated one way or the other and I love low
taxes. The above is simply my perceptions.
<BLOCKQUOTE
>
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=mailto:earl.a@xxxxxxxxxx
href="">EarlA
To: <A
title=mailto:realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Friday, March 05, 2004 7:42
AM
Subject: Re: [RT] sp500/nasdaq
top
Fascinating market action ... SPX has rallied to
1162.99 (within my target range) while the price of the June 1150 puts I
hold (and had orders for more) has also rallied. This suggests that
the market is putting in a blow-off. Had to short emini since it looks
like they won't fill my put order.
I assume that this rally is all about the perceived
notion that the Fed won't raise rates so the market can party longer. Not
a thought to the fact that continued employment problems will lead to
reduced consumption and other (economic and political) fall-out from
reduced consumer confidence. Foreign currencies are rallying hard which
means even higher energy prices are in the cards.
Earl
<BLOCKQUOTE dir=ltr
>
----- Original Message -----
<DIV
>From:
<A title=mailto:earl.a@xxxxxxxxxx
href="">EarlA
To: <A
title=mailto:realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Friday, March 05, 2004 6:11
AM
Subject: Re: [RT] sp500/nasdaq
top
SPX is very close to long standing target range of
1060-1073 which includes: 50% retracement to ATH, 200% expansion of
Oct02-Mar03 swing, and Dec01-Mar02 triple top.
I closed out long emini position just ahead of
Thursday's close leaving in place a SPX put established on
Wednesday. I also have orders working to add to put position on any
rally from monthly Employment Lie. During the past couple of weeks I've
closed out all trading positions in stocks and now hold significant cash
position. I still like energy stocks and hold core positions to which I
will add during any correction in equities.
There should be good support in the 1015+- area
which includes the 38% retracement to the Mar03 low and the Jun-Jul03
highs. If this area holds, then another run to higher highs (1250+-)
could be in the cards. On a fundamental basis, the market is richly
priced and risks are strongly to the downside should the public lose its
taste for speculation.
Earl
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=mailto:profitok@xxxxxxxxxxxxx
href="">profitok
To: <A
title=mailto:astrofin@xxxxxxxxxxxxxxx
href="">astrofin@xxxxxxxxxxxxxxx ;
<A title=mailto:realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Cc: <A
title=mailto:yacov@xxxxxxxxxxxx href="">Yacov
Twena ; <A title=mailto:bigschmo@xxxxxxxxxxxx
href="">vincent ; <A
title="mailto:Stuart-Auslander@xxxx Net (E-mail)"
href="">U.
Stuart-Auslander@xxxx Net (E-mail) ; <A
title=mailto:SLAWEKP@xxxxxxx href="">Slawek
(E-mail) ; <A title=mailto:rmac@xxxxxxxx
href="">Ronald McEwan ; <A
title=mailto:rginsat@xxxxxxxxxx href="">Ron
Miller (E-mail) ; <A title=mailto:panda2222@xxxxxxxxxxxxx
href="">panda2222@xxxxxxxxxxxxx ; <A
title=mailto:ntt-list@xxxxxxxxxxxxxxx
href="">ntt-list@xxxxxxxxxxxxxxx ;
Ned
Markson (E-mail) ; <A title=mailto:mirat@xxxxxxx
href="">Mike Burk ; <A
title=mailto:ketayun@xxxxxxxxxxxxx
href="">Kate (E-mail) ; <A
title=mailto:Jseaton357@xxxxxxx
href="">Jseaton357@xxxxxxx ; <A
title=mailto:Gocycles@xxxxxxx
href="">Gocycles@xxxxxxx ; <A
title=mailto:urania@xxxxxxxxxxxxxxxx
href="">Elizabeth (E-mail) ; <A
title=mailto:dcarter888@xxxxxxxxxxxxx
href="">doroty.h ; <A
title=mailto:dperrino@xxxxxxxxxxxxx
href="">Dom Perrino ; <A
title=mailto:dan.danc@xxxxxxxxxxxxx
href="">Dan C (E-mail) ; <A
title=mailto:cyclesman@xxxxxxxxxx
href="">Cyclesman (E-mail)
Sent: Thursday, March 04, 2004
9:43 PM
Subject: [RT] sp500/nasdaq
top
Most likely 3/5/04 should be
a top for a while
get out of longs and if you have
long term gains consider writing calls
most likely next is 1050 on
sp
if I am wrong, the max upside is only
10-15 sp
points
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