Populist Policies Worry Investors

Wall Streeters want free-market economics—right after a bailout, of course. But they promise this will be the last time.

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A recent Bob Novak column from a few days back echoes what I am hearing more and more from investors I chat with:

The central bank's bold new role relieves the pressure on American financiers who have committed serious errors but does not reassure investors around the world alarmed by what they perceive in the U.S. political process, where class warfare has gained traction. The populist prospect of a new Democratic administration and Democratic Congress that will impose higher taxes and trade protection contributes to what is seen as an international buyers strike by investors that feeds the financial crisis.

My take: Yet everyone on Wall Street wants a bailout, it seems. Let me again repeat: There are no libertarians during financial crises.