I was always taught that Washington, D.C., is the capital of our United States of America, but they were wrong. We have two capitals: Washington is the political capital, and New York City is the financial capital. I’ve also discovered something else. Now Washington cannot be held responsible for its financial actions because that belongs to Wall Street.
I remember when the Base Realignment and Closure (BRAC) Act closed then-Hunter Air Field (Air Force Base) in Savannah. The closing committee was not responsible for its decisions. The federal government learned from that. Sen. Sam Nunn, chairman of the Senate’s powerful Defense Committee at that time, could not stop the closing nor could two senators and several representatives. This Congress has produced the same type committee. If the “super” committee cannot create a budget, then an automatic reduction program steps in. It will reduce the budget across the board, and the federal government is not held responsible.
Where can a politician find a scapegoat? Politicians are known to send popular laws through the political front door, while sending unpopular ones through the side or back doors. Wall Street gives the politicians this opening.
What does Wall Street receive in return? When was the last time you, the populist, voted for a Wall Street CEO? Nobody is held accountable for their actions. Also, if the baby boomers retire, most will stop using their disposable income to purchase additional stocks and bonds, use their earning checks to purchase food and entertainment and not reimburse the check back into additional stocks and bonds.
The average stockholder has continuously sent the couple’s two-point-five children through school as businesses, educators and governments have inceasingly lectured them. Now, they use the extra money to enjoy their time from the grind. They want to see the sights, travel and maybe stay in hotels. Wall Street will lose their “warm” sales, and they need to seek “cold” sales. Anyone who has worked in “cold” sales will know that is a thankless job. So they have a crisis; we have a crisis. Then the average Joe must work until he dies on the job and their businesses continues as usual.
As I have frequently heard, Wall Street is the rich man’s “welfare system.” What is an economic bump to Warren Buffet is a huge mountain to climb for the small investors.