The Sky is Falling on the Emperor,...and his new clothes".There is a psychological explanation for this.

There are tons of books on how to run the numbers, but I find it is more important to find the right fit for your psychological profile.

I'm hoping to return to investment psychology "paying yourself first" and maxing out my 2012 contribution.

That said, as someone mentioned in the other thread, there is also a psychological component, and it's sometimes correct to go with the suboptimal financial solution in order to appease the psyche...

A third group, the upper middle class/slightly rich folks, would invest it, since they have less shelters than the really rich folks and more of their real income passes through and is taxed as ordinary income.It seems in all three cases, the extra money still goes into the economy and creates jobs and income for people.With regard to the psychological effect of the cuts, I agree with your point 100% that it will affect the middle class the most.Originally posted by J Scott:- Changing economic policy works when it changes behavior -- get people to do things that otherwise weren't doing, and the economy is affected.

There is just some psychological importance to it for them.

It's called "psychologically disadvantaging" a property. 

Besides that the other pros were I learned about the contracts, laws, psychology/mindset of real estate agents/brokers and real estate investors, many times they are TWO different mindsets.

:a tenant applied for a house last week.first sentence in the inquiry is "I have a PhD"... later on we find it's in Animal Psychology. decent income, credit card debt. we approved her and she goes..."

And just psychology of such a traumatic experience will slow the market.