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To: Larry Lucido
He's not a blogger...he's a highly regarded professional capital markets observer.

I've been playing that game for a few decades myself, and what we're seeing now is without precedent.

It's as if FDR and his brain-trust/central planners rose from the dead to seize control of a bureaucratic machine they couldn't have imagined in their wildest dreams.

Investors and traders have no idea - none - what insane scheme will befall the markets next. MF Global? The sudden subordination of all European sovereign debt? A super-tax on US investment income?

As investing requires an assessment of forward risks, and it is now impossible to calculate those risks, capital remains frozen, benefiting neither its owners nor the wider public.

Of course, this result suits Obama, because he can play the "bad capitalist" card, demanding more power and loot as he expands the welfare state to absurdity.

3 posted on 02/20/2012 8:14:04 AM PST by NativeNewYorker (Freepin' Jew Boy)
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To: NativeNewYorker

It's as if FDR and his brain-trust/central planners rose from the dead to seize control of a bureaucratic machine they couldn't have imagined in their wildest dreams.

Investors and traders have no idea - none - what insane scheme will befall the markets next.

You are absolutely right. And this is the essence of Regime Uncertainty which Robert Higgs explains as the root cause of FDR's Lost Decade, the Great Depression. Doing the same thing will reap the same rewards.

4 posted on 02/20/2012 8:35:05 AM PST by Paine in the Neck (Where's he getting these ideas? He's not smart enough to be that stupid all by himself.)
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To: NativeNewYorker

“Investors and traders have no idea - none - what insane scheme will befall the markets next.”

You can say that again. And why is the Dow at 13K and as of this moment, futures are up?? With all that is going on, it makes no sense. Certainly not your father’s stock market anymore. There’s no such thing as longterm investing anymore.


5 posted on 02/20/2012 8:39:17 AM PST by SueRae (Tale of 2 Towers - First, Isengaard (GOP-e), then 11.06.2012, the Tower of Sauron)
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