< Return to Bears pagePoliticians unfit to remedy financial crisis, Palin example
The markets are dirty; always have been, always will be. Some issues being discussed in the October 2, Vice President debate I have to take at face value because I am not an expert in those fields. When Governor Palin promises to “get rid of greed and corruption on Wall Street,” I immediately recognize it as a boast like unto "a chicken in every pot and a car in every garage." (1928 Presidential Campaign Slogan from Herbert Hoover). In Palin's promise to fix is the acknowledgement and possible validation of my opening statement.
There are a lot of lies being told and impossible promises being made by both candidates, most of which I can only guess at. But the one promise I am absolutely certain is impossible to keep is the one Palin just reiterated "to not allow the greed and corruption on Wall Street anymore." After that, I laughed out loud and turned off the TV. A dubious proposal to rid Wall Street of "greed and corruption" won't lead to any real economic results - it's the opposite of what we need.
A quote from the movie Wall Street comes to mind, "Well ladies and gentlemen, we're not here to indulge in fantasy but in political and economic reality... Greed is good!"
How the fact that wall street is dirty, politicians are dirty and the people are dirty impacts finances can be seen in the glaring lack of trust (aka confidence) that causes financial panics. It is the root of fear. It is behavioral finance 101 (criminal vs. civilized panic). The fact of the matter is that from a global perspective, stock acquisition has been rising - but not in the U.S. Per the Distribution of Wealth in America (2007), 85% of public shares of corporations are held by 11% of the population (the world distrubution has an even greater disparity). As those people lose confidence in our ability to be honest and keep order, their interest out-migrates. All people prefer honesty and order, and right now it appears that the LSE is place to trade.
