Thursday, February 17, 2005

So what if i was right

Source:"So what is the stock market going to do? I do not know, and I really have not found a lot of information making predictions. Though the biggest thing I see coming down the pipe is the addition of hundreds of millions of dollars to the mutual funds of America if Bush gets his social security plan through. That could create artificial demand which could then raise prices past what the market will stomach which will then lead to a crash....OR....The addition of money could create an period of instability which causes stock prices to stall or drop....OR...The addition of the money could allow investors to find new markets and fund growth in those areas further raising the rate of growth in American and world wide."

Alex Tabarrok Confrimation:Can social security privatization raise economic growth? Certainly the answer is yes. It's a big reform which (done right) can significantly increase savings and reduce labor market distortions.


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