There Is No Plan

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Wall Street Estimates. Why Do We Still Listen?

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It’s earnings season and a frosty one at that. Every day we hear about this or that mega-company beating or failing to meet Wall Street Earnings Estimates. Stocks rise and fall on the results. Some heads roll, other heads are crowned.

And all because a clutch of Wall Street analysts decided that it was going to happen that way. They’re part of a select brain trust that has sent the world economy into a spiral. What, one might ask, were their estimates on the now-toxic bonds they were so eager to carve up and sell up to a few months ago? And yet we continue to listen to them, ignoring the distinct possibility that they might be manipulating their estimates to boost the sagging bank balances of their institutions.

Wall Street built itself a veneer of respectability and knowledge based on very little. We believed in their cult.  And yet even after they’ve possibly holed the US economy below the water-line, journalists still hang on their every word. Our faith in them has taken us to the edge of the cliff. Are we going to jump?

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Written by coolrebel

January 26, 2009 at 5:09 pm

Posted in Washington

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