sorno

Fear of Higher Taxes a Cause of Sell-off

The post is pretty superficial, since it basically assumes everyone wants to get out of capital market because of increase in tax. If people pull out money from the capital market, where will they put the money? CD and bonds, which has lower growth and higher tax rate? The sell off in market has nothing to do with potentially increase in tax, it's clearly due to the credit crisis and the slowdown of the economy. The lack of IPOs is also due to the slowdown of the economy. Why do you think people who started a business simply because they want to sell it? I seldom heard people put a sell price in mind when they run their business and if they do, they properly can't run a good business.