Can there be a Good Deficit for Stock Investors?
Monday January 12, 2009
With a $1.2 trillion annual deficit facing us, some are worried that massive government spending will cause interest rates to skyrocket.
The problem facing the incoming Obama Administration is that the danger of the economy slipping further is greater than huge deficits and high interest rates down the road.
If the deficit spending can put people to work, investors may benefit in the near term as business gears up for promised public works projects.
Will this fix the economy? Unfortunately, no one knows for sure.


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