As I mentioned in an earlier tweet, there are big layoffs coming to the bond market. We are in the midst of a radical transformation of our capital markets. The extreme levels of new regulation, the continued malpractice by Wall Street (Facebook IPO the latest example) are going to cause a fundamental change in the way Wall Street does business.
The consequences for Mom and Pop remain to be seen. With the Fed printing money and masking the true desires of free capital markets, the end game of all of this is quite fuzzy at this point.
At a minimum there is already reduced liquidity. There is less confidence in our capitalistic system. That is not a good thing.
Capital markets are an integral part to a capitalistic society and they need to be healthy. Ours are not. They provide a much needed way for entrepreneurs to finance their risk oriented ideas.
I hope whomever is elected to govern in November can figure all of this out and make it all ok.
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