Mar 11
Unless Washington acts soon to resolve these uncertainties, from the cap-and-trade folly to the health care monstrosity, most investors will likely remain largely on the sidelines, consuming some of what would have been invested and protecting the remainder of their wealth in cash hoards and low-risk, low-return, short-term investments.
Private investment lags almost 1/3rd behind 2006 levels. The largest “investment” happening is irrational politically driven government spending, which actually acts as a brake by causing fear and uncertainty. Throw in crazy debt levels, and unpredictable rises in taxes and labor costs and you squelch investment and recovery.
Things would be different if Congress lost their jobs on real economic metrics.