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Anyone here read mises.org? This isn't so much news as it is an angle on the psychology of wall street that I hadn't considered. Strangely similar to Stockholm syndrom?
From yesterday's, "The Idiocy of Wall Street: Applauding Its Own Demise", by Don Rich
From yesterday's, "The Idiocy of Wall Street: Applauding Its Own Demise", by Don Rich
The vertigo factor in the last two weeks of the stock market has been high: down 400 points, down 400 points, up 400 points, down 400 points, up… Which is it, one wants to know, because to have the answer as to the state of the future would relieve anxiety in the short run, even though the things we do to relieve short-run anxiety often cause long-term calamity.
Things like nationalizing the finance industry of the United States, which is, effectively speaking, the consequence of Federal Reserve and Treasury actions of the last two days.
The humor factor in the rally of last week has been far higher than the vertigo factor, however, as Wall Street bizarrely applauds the nationalization of the finance industry.
...
Given the economics discussed below, and the government's lack of credibility to date, the real costs will now clearly run into the high trillions. The question is, who will get stuck with the losses and how will that loss-distribution process be handled? For Wall Street to applaud the prospect of the upcoming events is lunacy. Why is anyone listening to Paulson and Bernanke?
Things like nationalizing the finance industry of the United States, which is, effectively speaking, the consequence of Federal Reserve and Treasury actions of the last two days.
The humor factor in the rally of last week has been far higher than the vertigo factor, however, as Wall Street bizarrely applauds the nationalization of the finance industry.
...
Given the economics discussed below, and the government's lack of credibility to date, the real costs will now clearly run into the high trillions. The question is, who will get stuck with the losses and how will that loss-distribution process be handled? For Wall Street to applaud the prospect of the upcoming events is lunacy. Why is anyone listening to Paulson and Bernanke?
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