There Is No Plan

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Why Does Anyone Still Care About Wall Street?

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Wall Street is now totally disconnected from economic reality. Every day there’s more bad news, and half the time Wall Street is “rallying”. The reason is simple. It’s a closed market. It doesn’t have much to do with you and me, and now with the world crumbling, there’s less incentive than ever to pay attention to the indicators. Why not just buy and sell with other people’s money, going short or picking up bargains as the recession deepens. And yet the press dutifully trots out the Dow Jones and Nasdaq averages as if they actually mean something. But the truth is they’re getting to be as irrelevant as the latest Box Office Top Ten.

Wall Street is an amoral marketplace. It doesn’t care about real people because there’s no money in it. Unemployment just means better productivity. But we’re living in a time where social darwinism is perhaps a little outmoded. Not only that, but the leveraged ways of the Street are over now that even the untouchable Goldman Sachs has signed up with the Fed. Nobody’s going to care about their “anyalsts” anymore. Nobody’s going to care about the ratings agencies. They screwed up big time. Their credibility is shot.

Add to that the fact that short-termism is at its lowest ebb since the New Deal, and the Street just gets dirtier and dirtier. Stock price fascination meant more and more mistakes, more and more greed, less and less planning. Just compare GM to Toyota. Says it all. We build SUVs, they build the Prius. Get it?

So why not party like it’s 2006. Why not buy and sell your stocks, why not rally and bargain hunt? Wall Street is old news. And the world is about to realize it.


Written by coolrebel

November 7, 2008 at 4:00 pm

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