Few Choices Beyond Stocks

BW's William Wolman says the housing market has peaked and it's the wrong time for bonds. And that explains the recent run-up in equities

If he were asked to advise the President, William Wolman -- author and longtime BusinessWeek economist -- says he would recommend rescinding much of the recent tax cut as soon as possible. Wolman's argument is that the federal government is trying to feed three "voracious" mouths: military spending, social services (notably changes in Medicare), and its own drive to cut taxes ("especially for the rich," he notes). At the same time state and local governments are raising taxes to cover their deficits and thus causing some inflation -- which is, incidentally, why Wolman doesn't see deflation in the country's future.

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