Howard Marks of Oaktree Capital has released his latest letter to investors, “I’d Rather Be Wrong.”It’s the sequel to a letter he wrote a few months ago, “Tell Me I’m Wrong,” and an opine on the politics.
Specifically, he writes about how no one gets anything done anymore. It’s six pages long, but we think we can sum it up for you in three sentences.
He remembers the good old days:
“In the old days, the Lyndon Johnsons in Congress would sit down for a drink with the other side, swap a “yes” vote on this for something else, and get things done.”
He says, now, this is what happens:
“Today I think few legislators from either party will vote for anything that would let members of the other party claim to have accomplished something. That may be an exaggeration, but I think it’s more true than false.”
Thus you have the reason why Obama can’t accomplish anything:
“You can think the things President Obama wants to do are either right or wrong, but you can’t deny the fact that, even with majorities in both houses of Congress, he can’t do them. This truly is gridlock.”
Read the full letter and more on MarketFolly.