Uncertainty Is Such A Copout

Stan Collender:

But to bemoan the uncertainty as immobilizing and make it into its own issue is disingenuous if not completely deceitful. It's time to call it what it really is: Wall Street Whining.
Here's why.
1. When isn't there uncertainty facing Wall Street about what's going to happen? Whether it's weather, Geo-political, economic or political, uncertainty is one of the most basic elements of capitalism and free enterprise.
2. In fact, it's one of the first things you learn on your first day in Econ 101: Uncertainty -- that is, the lack of perfect information -- is one of the things that drives markets. If everyone knew...or assumed...the same thing, there wouldn't be different investment strategies, alternatives, funds or trading. Everyone would want to buy or sell the same things for the same price. In other words, for all the complaints about it, without uncertainty Wall Street wouldn't exist.
3. For all its whining, Wall Street doesn't really want certainty unless it's a guarantee that what it wants will happen. Would it feel better if a decision were made on Capital Hill right now that the Bush/Obama tax cuts will expire on January 1 and that the sequester spending cuts won't be changed, that is, if the uncertainty were completely taken out of the system?

He has a little bit more.  The thing is, he's right.  The claim that uncertainty about whether the Bush tax cuts will end is going to disrupt the economy is just a threat to get their way.  These guys will be fine if the Bush tax cuts expire, just like they were before the Bush tax cuts.  All the talk about uncertainty is a way to weigh on the collective psyche of businessmen, and it works like a charm.  But did these same businessmen worry about uncertainty when they launched their businesses?  No, because they never would have done it if they had.  I may just punch the next person I hear who claims that they don't want to make a business decision because of uncertainty.