opa-opines.net

This is part of the continuing series on rewording confusing economic advice. I have found another expert who disagrees with other experts.

This time we focus upon expert Jeremy Siegel, professor of finance, Wharton School, University of Pennsylvania.

Professor Siegel is optimistic about recent indicators: several Federal Reserve actions; decrease in mortgage rates; stabilization of three indicators, retail sales, consumer sentiment, and housing.

The professor thinks Obama made two mistakes: first, having Treasury Secretary Tim Geithner brief the press with out details of his plan; and second, including tax increases in his long term plan. He believes that tax increases tamper optimism.

I think Siegel is telling us good news and bad news. Stable sales is good news but the bad news is that steady indicators are not really stable because they could change (if you understand that please explain it to me).

Further, Jeremy thinks tax increases for the wealthy will frighten them. So he prefers that instead of “tax and spend” or “spend and tax”, we should “spend and spend”.

Great idea. We can just print more money, it not worth as much as it was anyway.

Now don’t you feel better?