Delaying Tax Vote Could Crash Stock Market

[Hawkeye]

http://politics.usnews.com/news/blogs/washington-whispers/2010/12/2/delaying-tax-vote-could-crash-stock-market.html

Failure by Congress to extend the Bush tax cuts, especially locking in the 15 percent capital gains tax rate, will spark a stock market sell off starting December 15 as investors move to lock in gains at a lower rate than the 20 percent it would jump to next year, warn analysts.

While it is unclear how bad the sell off could be, it could wipe out the year's gains, they warn...............(more at the link)

[Lowdown3]

Saw this last night.

Maybe a couple possibilities here in my way of thinking.

1. Political wrangling. Repubs know that we are "on the brink" and are gonna use the fear of a market crash to get the tax cuts extended.
2. They all know stuff is fixing to hit the fan and are gonna use this as the "reason"- i.e, it wasn't because the country is broke as a joke! LOL

Either way, I'm in cash for 80% of my holding in my retirement account. I missed buying in this summer when it dropped below 10K. I had set my target buy in at 9,500, I think it went to 9,800 I should have bought in a little then anyways. Some of the funds I regularly trade have been up over 20% during this time period. And yes I would have sold them as soon as they made a decent return. I'm thinking of trimming it down to about 90% cash/money market. The "economic news" both here and overseas doesn't fit with where the market is right now. It's about time for a decent corrrection. The question is when and how much?

[crossbow]

Let her crash, it's just some millionair bankers propping it up with tax payer bailout money anyway, better to hit the reset button and start over sooner than later .

[Defuz]

Call me a bottom feeder, I guess! I like to scoop up battered stocks and hold them for a nice gain. Next big correction we have I may swoop in for something. I regret greatly not buying some car stocks in '08, or BP after the spill. Can't complain too much though as I did grab a retail stock at $2/share and sell at $12. Not a big player overall, just a dabbler. As for the market crashing, the GOP knows what they're doing so the Dem's hand will be forced to act or take a bad PR hit.

[Klayton]

Let her crash, it's just some millionair bankers propping it up with tax payer bailout money anyway, better to hit the reset button and start over sooner than later .

Umm I am no millionaire crossbow, hate to burst your bubble...

Many many middleclass families own stock. I for one lost $10K when GM closed out all their stocks, and Obama came in and bailed out the union workers and screwed all the investors. Which is ILLEGAL by the way, but hey who cares when you control the justice department right. Now Government Motors stock is public again and selling for +$30 a share. I am PRETTY PISSED at Union Negotiator Obama right now.

My family only bought American Made Vehicles upto 2009, NO MORE!! I will NEVER outright support gangster tactic union workers again, EVER!!

Looking forward to buying my first foreign made vehicle in 2011. =) SCREW YOU UNION WORKERS!!

[crossbow]

Umm I am no millionaire crossbow, hate to burst your bubble...

Many many middleclass families own stock. I for one lost $10K when GM closed out all their stocks, and Obama came in and bailed out the union workers and screwed all the investors. Which is ILLEGAL by the way, but hey who cares when you control the justice department right. Now Government Motors stock is public again and selling for +$30 a share. I am PRETTY PISSED at Union Negotiator Obama right now.

My family only bought American Made Vehicles upto 2009, NO MORE!! I will NEVER outright support gangster tactic union workers again, EVER!!

Looking forward to buying my first foreign made vehicle in 2011. =) SCREW YOU UNION WORKERS!!

the only thing i can say to you is, you and thousands of others will have a lot less and probably nothing when the big boys decide to pull the plug.

[1Admin]

Umm I am no millionaire crossbow, hate to burst your bubble...

Many many middleclass families own stock. I for one lost $10K when GM closed out all their stocks, and Obama came in and bailed out the union workers and screwed all the investors. Which is ILLEGAL by the way, but hey who cares when you control the justice department right. Now Government Motors stock is public again and selling for +$30 a share. I am PRETTY PISSED at Union Negotiator Obama right now.

My family only bought American Made Vehicles upto 2009, NO MORE!! I will NEVER outright support gangster tactic union workers again, EVER!!

Looking forward to buying my first foreign made vehicle in 2011. =) SCREW YOU UNION WORKERS!!

Had that same thing happen with Delta airlines stock. Bought well BEFORE the BK, then afterwards they somehow declared all stock bunk. How is that legal? A stock is a piece of legitimate ownership in a company after all.

Crossbow- I know where you are coming from but we have to also plan for if TS does NOT hit the fan. I may never see one cent of my Roth IRA funds if the market collapses. But if the market doesn't collapse, I'd like to not eat Alpo when I'm 75 ;)

We should plan for all eventualities IMO.

[Klayton]

currently all my assets I still have were pulled out (minus the one I am locked into for 6 more years) and the money was distributed into much safer, albeit slower growing, CDs...

[Matt In Oklahoma]

SCREW YOU UNION WORKERS!!

Don't work for the car companies but I am in a union job, ok, I'm considering myself screwed. Awesome, the post must be drinking hateraid today. I'm done with this, it has nothing to do with survival

[Klayton]

Sorry Matt... no direct offence was meant ;)

Just one of the things I hate big government messing with is who has the "right" to my money... :)