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Strategas chief investment strategist Jason Trennert argues if we stop changing regulatory rules, banks will start lending again.
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-- More let's bring in Jason trenor.
He's chief investment strategist at street T -- Only a third of these laws are written could this have a material impact on the financial sector as we know it with Romney was elected.
Play could how many although I think yeah as soon as we pointed out with 70% ago you're gonna have to do some fancy work footwork pretty quickly through the Romney administration -- -- thing -- interest thing obviously is the Fed is.
Quadruple the size of its balance sheet and interest rates are very low and -- you have congressman Chuck Schumer.
You know wagging his finger at Ben Bernanke saying you have to get to work.
In say no no you know the Fed has done funny there's -- funny of extra liquidity in the system you have to do warn the fiscal side.
To actually get the economy moving again.
And it seems to me if you don't know what the rules of the game -- you're not can apply and that's why despite the fact there's a lot of excess reserves in the banking system.
The velocity of money continues to go down what donates half and if you wanna give me a specific thing in order to start -- giving them mining get -- -- and increase the number lands me and I'd ask what is the simplest thing would be to.
Stop changing the rules.
Really you know come up with very you know from dead certain date where you come up -- the rules as Davis Polk was from this pointing out.
-- 70% ago.
What's happening now is the only people have access to credit -- -- those factors that don't really need it it's it's not the small business guy it's not.
The homeowner -- -- all the rest of that it's the people that are our pristine credits.
And so the main thing would be to create some sort of certainly I know it sounds cliche in basic but I run my own business.
And I can tell you if you don't know what the rules of the game -- there's a tendency to stop playing.
Where -- just toward cash -- do things that you know exactly had to do and we'll take a lot of risk.
I don't know if it keeps you up -- -- but it certainly keeps me awake and thinking about is and this coming decision needs to be made about tax rates in this country.
There are getting so close -- seems like the market hasn't really I mean didn't seem to be that worried about it and at what point.
As we get closer November really than a year do you start seeing shaking as I mean particularly if investment tax rates do end up -- up.
Point I think you're awfully close unless it is unless it turns out that there's a Clearwire in the -- is it is now it seems to me that economic activity is most likely make a big decision if you're running a business -- to make a big decision about capital spending.
Or hiring war -- or any of these things.
Unless you really know what things are gonna look like because that -- -- pointing out.
The differences or at least the stated differences between the two candidates when it comes to tax rates on dividends and capital gains could not be any further apart to 180 decrease different.
So it's hard to make decisions hard to plan and environment we say gee you know three months from now I can be dealing with a completely different environment.
-- -- to make a decision today about stocks.
Bonds or shoe box when you -- -- well if you have a long term time horizon it's clearly stocks and -- and when I say long term five to ten years and that's mainly because it's the only thing that has a chance providing you with some yield above inflation.
As far as bonds are concerned there's no value -- whatsoever and that's it's almost worse than a shoe box because people realize I think you can lose money -- -- right we're using it as a shoe box or understating how much they could potentially -- exactly especially with the bond yields of 180 right now so.
To me it's Josh if you really have a hard term time horizon you have to have if you.
Heard her warnings for some for some difficult.
Difficult.
Months that.
We're always just seven minutes and to the show but Gardner points I think is the quota of -- of course went out you have to have an outlook but.
Didn't get to -- -- -- Internet thank you so much.
