I have been watching the markets for a while. Having left financials a long time ago and not advocated them, I saw this company for a while. Having lived through the dotcom bubble, I knew the signs and this has trouble written all over it 3 years ago.
Today the market fell 500 points with big names going down. A lot of these problems, not all, could have been avoided if we had not deregulated the financial services industry. I’m not a big fan of big government but sometimes those regulations do help and I think if they had been in place, they would have helped to at least lessen the damages that we saw today.
Paulsen doesn’t seem to be concerned with fixing the problem just maintaining things until who ever comes in next. Hopefully we will learn our lesson from this that sometimes, tempered growth is not all that bad. Sure, we saw a lot of wealth made after dereg but a lot has vanished as a result.
Wall Street has acted like a kid in a candy store and I do remember when this was happening to other industries they said “let them go down, let the market determine who survives.” So I am not all that happy with bailouts, after all, what is good for the goose is good for the gander. If Wall Street firms made bad choices let them fail, after all, they should know how to manage money better than they have shown. They certainly have shown that they are not deserving of the high salaries and perks they heap upon themselves. So let them fail. The real engine of America, the small and medium size companies, will go on and continue to produce jobs and that is who we should be helping. The people who actually create jobs.
I think main street is where the real action is for growth in this country and if anyone needs a bail out or stimulus deal, it is main street. Hopefully someone in Washington will figure that out and start helping the real economic powerhouse of America. Wall Street, let it purge, it needs it more than a bailout.