Sunday, August 28, 2011

Clarity is a beautiful thing

I had dinner last night with a friend whose opinion I respect when it comes to both politics and the economy. We took our children to the local pizza parlor and as we are wont to do, we discussed Obama and his disastrous affect on the business community. Matt, my friend, is very close to the power brokers who decide what money goes where in large corporations and, more importantly, if the money goes anywhere at all. I made the comment "this uncertainty has everybody holding back." And then, Matt said - "Derek, it is not uncertainty, but rather certainty that is holding corporations back from investing in America."

Do you see the difference? My comment simply parroted the media's version of events over the last 30 months, suggesting that corporate leaders do not understand what is going on in the market. While Matt's statement - that corporate leaders are certain of what this administration is capable of and executing in the market - is the reason that has over $2 trillion dollars sitting on the sidelines.

The difference in real terms is that as long as Obama is in the White house there is nothing he can do at this point that will ever satisfy the decision makers. And the long and short of it is that these folks will look elsewhere to invest the corporate assets and that will undoubtedly be somewhere beyond the American borders.

I always love getting together with Matt. He has a singular way of putting things that clarifies my thinking.

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