News Flash: The Emperor Has No Clothes

Via Barry Ritholtz. This is why I like him.

The right wing has long embraced magical thinking. You can see it across a spectrum of thought: It is a short hop from believing that  Supply Side Tax Cuts are self funding to all other manner of nonsense. From denying Evolution to managing Health Care costs to Global Warming, it is a continuum. Making no-plan invasions of other countries is the natural progression of such magical thinking. If your beliefs are righteousness enough, then the outcome is assured by a munificent deity.

As a personal belief system, that may be fine, but as government philosophy, it makes for horrific policy decisions.

I’ll also add that it’s bad for making investment decisions. Reality, by definition, is the most efficient market horizon. It’s as hard to determine reality as it is to determine the correct price of a stock. No need to muddy the waters with extra artificially constructed belief structures.

News Flash: The Emperor Has No Clothes | The Big Picture.