Logically bankrupt and factually wrong: Eddie Kutner on negative gearing
The Smage, having published articles critical of negative gearing on Mar.7, Mar.30 and Apr.25, fell back into line on May 2 when it published an article by Central Equity Group chairman Eddie Kutner under the headline “A negative impression” — with comments disabled.
“As part of the campaign against negative gearing, investors are often described as ‘speculators’,” says Kutner. As negatively geared investors are betting on rising prices, perhaps they should rather be called gamblers. And because their winnings (if any) come at the expense of those who join the game later, they are, by definition, participating in a Ponzi scheme. Calling them speculators is putting it politely.
Read the rest at Pure Poison.