[OutsiderFan]

I HATE this being called a stimulus. It’s a massive rescue and should be called as much.

I had a lengthy discussion with a friend yesterday on the topic of debt, financial markets, and taxes. We basically concluded that central banks will always do whatever is necessary to save the system. He observed that if central banks will always print money to buy government debt, why the hell should we pay taxes? They de-value our currency holdings as it is, so why should we let them take our money also?

We both concluded over the long haul it’s best to buy an S&P 500 index fund because the same dynamics that drive bailouts also will make the stock market go up over time. There is an imperative to make sure the market goes up over time, so it always will.

[OutsiderFan]

I HATE this being called a stimulus. It’s a massive rescue and should be called as much.

I had a lengthy discussion with a friend yesterday on the topic of debt, financial markets, and taxes. We basically concluded that central banks will always do whatever is necessary to save the system. He observed that if central banks will always print money to buy government debt, why the hell should we pay taxes? They de-value our currency holdings as it is, so why should we let them take our money also?

We both concluded over the long haul it’s best to buy an S&P 500 index fund because the same dynamics that drive bailouts also will make the stock market go up over time. There is an imperative to make sure the market goes up over time, so it always will.