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To: Grampa Dave
I was on our church's finance committee during the Clintoonian years. I took a lot of abuse for refusing to put all of a retro fit fund, the church's savings and an endowment fund mainly into QQQ and then DIA, SPY and MDY at that time.

My ex-inlaws went through retirement in the 90's and placed a lot of their money with a money manager that had them in the "Clinton" stock market. They lost over half of their cash, a couple hundred thou, when the Nasdaq...PROPPED UP TO MAKE CLINTON LOOK GOOD...went bust.

They still don't get it and vote Democrat.

46 posted on 10/27/2006 7:56:24 AM PDT by ez ("Abashed the devil stood and felt how awful goodness is." - Milton)
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To: ez
ez,

The Clintonian 36% Tax Bracket made people look at the lower Capital Gains Rates and shun anything rational that had a "Dividend" since it got taxed at the higher rate. Ditto for the Venture Capital World they also lost their marbles, by backing virtual-e-dog-foods.com up the ying-yang.

In 2001 when the Clinton downturn really hit, and fund managers started selling they drove short term and long term gains with in the fund.

At tax time not only were people reallying from the loss of their "High Beta" funds, but also they had to pay taxes on these loosing funds, it wasn't pretty.

Fast Forward a few years and GWB and company lower Dividend Rates to Equal Cap Gains Rates. In my opinion this is the most underrated and overlooked driver for this rational and continued expansion of the business cycle, it is absolutely Brilliant and no one sees it expect maybe me and Larry Kudlow, but I can't say I hear him screed about it I like do. Then again, I do not have his "gravitas" :-) .

60 posted on 10/27/2006 6:08:21 PM PDT by taildragger
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