Doug Kass: Political Gridlock Will Slam The Markets

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Doug Kass is on CNBC this morning, talking a lot of politics, and generally hammering the administration pretty hard on its continuation of the Bush bailout policies, and its special protection of unionized workers.

But unlike many of the other folks who you see on TV, he’s not so sanguine about what will happen to the markets when the GOP takes over in November.

He’s certainly not buying into the tripe about gridlock being good for the markets. Instead he says it will be “valuation destructive” (codeword for stocks will fall) because the “imbalances” at the state level will require “punctuated” market intervention, and presumably won’t happen when nothing can pass through Congress.

We’ve been warning about this for a while, at least urging folks to consider the idea that this economy is addicted to stimulus, and that gridlock won’t be all it’s cracked up to be.

Glad to see we’re not the only ones.

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