I see that the fruits of our grand compromise are all ready dropping at our feet, the stock market is in free fall. It may seem to some that this is just a reaction to the bad labor news and to some extent it is but more importantly it is one of the the few long term indicators on wall street. The pros on the street make a living flimflamming the newbies and institutional investors, that is the short game, while some of the the long term investments they hold is the long game and those investments tell the future of where they think the economy is headed.
The republicrats have tied the governments hands economically, which will inhibit its ability to help the economy recovery, and the street knows this, so you will see over the next year the stock market slowly creep down. The pros will start to take their gains from the long term investments they have and start to switch to their short game of conning newbies and start shorting the institutional investors they "advised" in the first place.
The market is just a large wildwest casino where sharpies take the money of the miners and cowboys of main street. It has long since stopped being a place where companies would go to raise capital and investors buy into growing businesses to share in the profits made. Today a company's shares are traded as chips in the game, and the game has nothing to do with the real economy, main street, and that is where we live. So although it may be of interest to you because of a 401k or pension you may have, the state of wall street does not actually strongly affect the real economy, main street, it just gives a slight indicator of where things may be headed if you read it properly.
Just remember wallstreet is a casino and if you're sitting at the table wondering who the sucker in the game is, it is you.
No comments:
Post a Comment