The huge Bush tax cut was supposed to immediately lift the stock market, creating a “wealth effect” which would then boost consumer confidence and revive the economy.
Well, the tax cut passed Friday night. This is Tuesday morning (markets were closed yesterday), and the stock market opened … down. Down 45 as I write, 5 minutes after the open.
Oops. Oh well, so much for that idea. Sorry about that HUGE increase in the deficit.
Update –The market went up later, because of consumer confidence and housing numbers. But the initial movement, in response to passing the tax cut bill, was down.