Thursday, November 16, 2017

Stockman Smashes GOP Tax Bill as ‘Ideological Imposter’ of ‘81 Bill

Stockman is very good here. Though, I think the stock buyback situation is more complex than he presents. Fritz Machlup discussed this in much technical detail in The Stock Market, Credit, and Capital Formation.

I also believe that an important consideration that Stockman doesn't mention is that to the degree debt is increased by the corporate tax cuts it will lead to greater government borrowing thus squeezing out corporate borrowing--and will thus pretty much neutralize the corporate tax cuts.

As far as the stock market, in the EPJ Daily Alert, I make clear that I am very nervous about the equities market (and bonds) but don't see a full-fledged recession just yet.

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