Hey guys, rather new to this forum but post a bit on other forums, going to add my ideas to this hand...
First of all I'd like to know exactly that the game deffinately was 1/2 NL Hold 'Em, and that you chose to buy in for $40. Usually this is known as NL200 and the max buy-in at a capped game would be $200. Is this also a 6-max table? I'm assuming it is.
Preflop, I feel its a mistake to limp here. I dont think you need to limp with these kind of hands. 89s would be different, but 34s, I dont think its worth a play here so I'm mucking it most of the time preflop.
The turn is interesting, we have a bet out from a TAG player of $4, and a reraise by what you say is a loose player, new to the table. You're playing an effective stack of $70 here, since thats the biggest stack in the hand besides yours. At this point we need to try and work out what our opponents have and figure out the right play from that.
What are the quality of the players here? The bet and raise is probably meaning someone has something they want to play. But do people chase draws etc? I'm not 100% sure whether I'd have put it all in at this stage or whether I'd raise your amount and take the next street. If the loose player is gonna call he's leaving back not very much, and the early player is in a similar position.
The river is a pretty bad card for you. Its the fact that this guy is loose and new to the table that creates a little bit of confusion, but if you're unsure on the river, chances are you could well be beat. I think I have to put one of them on a flush draw here. What happens if you call and EP, who is yet to act, pushes on you too? Its a horrible situation, but I think I have to let it go.
I agree with MercilessKiller that this situation was created by the call preflop. I really dont think you need to be comming in with that much of a range of hands in this game. Especially as you say you have loose players on the table, why not just play the hands that is going to extract money from them, rather than calling with a weak suited connector? Plus the fact that you're at a 6 handed table deffinately puts me in the position of a fold here preflop.
MercilessKiller deffinately knows what he is talking about from what he's said about the hand, I dont think the harshness was necessary, everyone can have an opinion

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Hope some of what I've put here helps anyway.