The difference between Clarity, and Politics

One would have just crawled from under a rock, or beamed in from another planet to have not noticed what is happening in our financial markets. Everyone, and I mean everyone, has an opinion on the cause, the root cause, the projected cause,  and on and on and on and…….. You get the picture.

What most are witnessing, but have truly never been exposed to, is the truism of the saying…” The markets are looking for clarity.”  Most difficulties in any environment wont come to full fruition until the extremes are met by both sides of the problem.

Politics by it’s very nature surrounds itself in the ( “Grey Area”)  of problem solving, and problem recognition. Financial matters by their nature only resolve themselves with clarity ( “Black and White”) resolutions. The more vague you can be in the political arena, the more you can bend, and twist, or spin answers and ideas to fit your needs. That is not so where  “Real Money” lives, and works.

If the goal of the government is to try and be as vague as it can to support a political party, or ideology……The worse the financial markets will be.  In fact, they’ll  recede from making any decisions to spend, and or will only take positions that  give “Safe Harbor” to their money, and assets.

This in turn is exactly the opposite of what each side wants, and that  creates the negative feedback loop that we all hear about in the media. It’s at this point when the politics of the day, however political in ideology it may be, must have clarity for the markets to understand so that it may resolve itself to move forward, for good, bad, or indifferent.

Mark