Comment #1:
"Navigating increasing tough markets may be the least of our worries. I
have worried a great deal about the regulatory and statutory changes
our industry faces. Then I saw this, "The chief executive of
struggling US car company General Motors has been ordered to step down
by US President Barack Obama." (BBC headline) and realized that I
wasn't worrying even remotely enough. The current administration
apparently knows no bounds and we are dead in its sights. The
environment we have known is history and the future is looking
increasingly hostile. All of us, no matter how large or small, must
prepare for the worst. I would suggest that each and every one of you
consider what the impacts might be, how to resist and, if
unsuccessful, how to survive; a transaction tax may be the least of
the changes we face."
Comment #2:
"I think there's a significant point I haven't seen addressed yet: in our
world change is the norm. The markets are constantly evolving and more
or less government intrusion is just another manifestation of an ongoing
process (evolution).
I think the biggest adjustment markets need to make is to become
accustomed to the degree of transparency with which the new
administration has chosen to operate. Under a less transparent
administration, the whole thing would have been done behind closed doors
and nothing would have been said about the governments role. Waggoner
would have resigned to 'spend more time with his family.' Different
presentation... same result.
Besides I don't think that this is such a big deal. Essentially, the
government is GM's banker, and they're saying that as a major debt and
stakeholder in the future of the company, they think it needs new
leadership. How is that so different from a CEO getting ousted as the
result of a takeover or as a pre-condition by a bank for a line of
credit or other financing? Banks throw their weight around all the
time. What's sad, is that there's not a bank left that's healthy enough
to provide the kind of financing these guys are going to need."
Comment #3:
"I'd like to draw a parallel that I hope won't shock anyone (many people have pointed this out) between this financial crisis and 9/11. They both were global catastrophes that had huge consequences and exceptional measures had to be taken in response.
The Bush administration was given the benefit of the doubt for a few years as far as its response to 9/11, before those who had problems with it started voicing their concerns in earnest. So I think it's only fair the Obama administration be given the benefit of the doubt for a little longer than 3 months before starting to expect the absolute worst in its response to this crisis.
Having said all that, I'm an independent trader and I can see the writing on the wall. My work environment will probably become a lot tougher going forward, costs will be higher, taxes will be higher, and while there may be great investment opportunities in the future, I might very well not be allowed to take fully advantage of them. But that's the new environment, so let's try to adapt."
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