Benign Gridlock and Malignant Gridlock

http://www.futureofcapitalism.com/2010/11/benign-gridlock-and-malignant-gridlock

Congressional Effect Fund manager Eric Singer, writing in Registered Rep:

Even though the historical record for real returns with gridlock is great, I am worried that history will not repeat itself in the near term because there is a difference between benign gridlock, when economic times are "normal," and malignant gridlock, when they are not. ...While Reagan had a split Congress and a fabulous run, Hoover had a split Congress during his last two years, and the market lost 63.4 percent. In times of crises, a Congress that cannot undo its mistakes is not good. Could you imagine using your computer without an undo button?

by Ira Stoll  |  Nov 15, 2010 at 11:24 am Related Topics:  Politics receive the latest by email: subscribe to the free futureofcapitalism.com mailing list