$8,000 credit extension eyed

Discussion in 'Growing and Managing a Business' started by irahat, Oct 27, 2009.

  1. irahat

    irahat
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    The $8,000 first-time home buyer tax credit may be phased out rather than allowed to expire as planned in November. According to competing plans in the Senate, one version would see the tax credit gradually decreased until expiring at the end of 20-10. Another plan would extend the entire credit through June of next year. The Senate is expected to act later this week on the program responsible for helping to lift the worst housing market in decades.

    Incentives like these, however, in the long run do more harm than good, according to Marc Faber, editor of The Gloom, Boom and Doom report.

    MARC FABER, EDITOR, GLOOM, BOOM AND DOOM REPORT SAYS:

    "Government spending has a multiplier of less than 1. In other words, it doesn't stimulate the economy really. And when you have larger and larger fiscal deficits your government debt goes up and it keeps interest rates at the higher level than would otherwise had been the case."

    There are signs of life coming from the TV market. Corning, the world's largest maker of glass used for liquid crystal display screens, or LCDs, says it expects global consumer appetite for flat-screen TVs to be robust through next year.

    Looking at market action, the dollar staged a sharp rebound from a 14-month low as some investors worry the dollar's beating may have been too severe.

    And that led investors to wonder if the recent rise in commodity prices was also overdone. Oil fell to the $77 a barrel area after topping $80 early in the session.

    As for the stock market: it too struggled with banks leading the way down.

    While in Europe - the pending break-up of Dutch financial giant ING - added to negative sentiment.
     

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