Nobody Came to the Party - A Short Comment

Wall Street is not happy these days. Recent data indicate that the ordinary investor has not thrown any money into the stock markets this year. Which basically means that the only participants in this years' "stock market rally" are those same financial firms on Wall Street - plus a few professional investors and people dumb enough like Nero < See our article On the Light Side - Everyone Loves Nero. >

Of course, Guido and others have suspected this all along. Since March, when assistance and the waiving of restrictions for these financial  firms was a done deal, this so called "stock market rally" has had the appearance of being artificial. First, the only big movers in the rally, have been these same Wall Street financial firms. Now one could say, naturally, this should be the case. After all,  the government is doing  everything for them except shooting people in the street. < But just wait when they start having public bank panics. > Then, also, the depressed stock prices of these firms may have been overdone.

Really, though, nothing has changed for the financial industry. Most, if not all, large banks, and probably insurance companies too, are de facto bankrupt. If anything, after the Federal Reserve's reckless monetary expansion, things are much worse for these companies.

One can tell this when watching the mainstream media, a significant part of whose advertising revenues are paid by these same firms. They are doing everything, and anything, to implore people to get into these markets before "it's too late". Too late for what, another financial crisis?

Rest assured, another financial crisis / collapse is coming. This time it will probably be handled much better than the last one was by the idiotic Bush administration. But it will happen, and when it does, this time there may not be any resources, financial or otherwise, to mitigate or forestall the effects.

They're trying to get the ordinary citizen more  involved in their mess. But that ordinary citizen seems to be saying -

"Fool me once, shame on you. Fool me twice, shame on me."

If humanity were perpetual fools, they wouldn't have survived this long.

America will survive. But it's current financial system may not.