Re: I'm not for volatility either - Saab General Bulletin Board - Saabnet.com
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Re: I'm not for volatility either
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Posted by James [Email] (more from James) on Sat, 7 May 2011 11:36:57 Share Post by Email
In Reply to: Re: I'm not for volatility either, Reality, Sat, 7 May 2011 05:08:10
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I'm not advocating that the government participate directly in the stock market. I'm merely advocating the mild, continuous, use of variable tax rate (or other variable stimulus/drag) as a means of damping the system. This is what I refer to as Keynesianism. It may not be a historically correct view, but it is the interpretation of the definition I learned in macro 101...

The successful Keynesian policies I'm referring to in Canada occurred in good times, not bad. Imho, Canada's recent efforts to stimulate the recessed economy include some good policy + some bad (eg we did a GM bailout too!)... anyway, that's my point. it needs to be 2 sided. that governments usually spend and don't save does not mean it need always be so or that the principle is invalid... it only means we need a more educated populace to demand a better government...

not only that, my definition of Keynesianism works well in business + personal life also: you've even said so: buy low. sell high. when times are good, hoard cash (sell high) for bad times (so you can buy low)... whether it's the stock market or real estate or employees or bread...

James...

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