2008 Market Trends

I had a great discussion the other day about the potential tax rebate all US taxpayers may be receiving. This opens up interesting political and economic questions and points of view. My thought is that if the point of the rebate is to have the taxpayer spend that money to inject it back into the economy, then I hope most people ignore the advice. With the savings rate in the US hovering around 0% and more and more foreclosures occurring, maybe taxpayers should simply pay down some debt and live to spend another day. Carrying too much debt and the continuation of the trend will just continue to drain the ability of consumers to spend in the future. How many tax rebates can the government do?

P.S. I heard from the owner of a large CPA firm in our area that the tax rebate might be taxed as income for 2008. How ironic.