No matter what the topic of debate on Capitol Hill these days, one thing is for certain: It's going to be brutal.
While "gridlock is good" was a mantra of the 1990s, the chasm between today's political parties is causing great uncertainty for individual investors and businesses, says John Mauldin, author of Endgame.
Gone are the days of relying heavily on long-term valuations, inflation/deflation, currencies, price-to-earnings ratios and business plans. "It seems like we have to pay more and more attention to politicians and what they are doing and less and less to our economic theory," he writes in his weekly e-letter, Thoughts from the Frontline.
Historically, politicians did not engage in too much "stupid" behavior, Mauldin says. The most extreme thing Congress might do is marginally change tax rates. "The problem [today] is we've come to the endgame," he tells Aaron in the interview above. "When you are in a deleveraging period, which we are in now, the rules change."
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