People in the know, who travel in the top echelons of both Washington and Wall Street, tell me that the views of what went down at the Goldman hearings are diametrically opposite within the two groups.
Wall Street people think the Goldman witnesses held their ground explaining how markets function, while the D.C crowd views the Goldman crowd as being a bunch of unethical crooks that were exposed by the questioning of the Senators.
The problem for Goldman, Wall Street and capitalism is that the man on the street is thinking like the D.C crowd, that there is something inherently evil in the way Goldman and other brokers conduct market making business. This is likely to lead to some very bad legislation that will hinder the capital raising function on Wall Street.
Main Street hates Goldman Sachs and the political crowd is using this anger by posing as doers. It will result in laws
.
Wenzel,
ReplyDeleteYou have essentially observed the beginning of what I recently dubbed the "micro-managed" phase of the recovery, which will in fact result in the intensification of the severity and duration of the ongoing economic depression.
I think you're right-- this is where it really starts to get ugly. This type of thing could seriously hamper the competitiveness and thus desirability of the US as capital market to the world.
"...the man on the street is thinking like the D.C crowd,..."
ReplyDeleteNow you see the true benefits of a government school indoctrination program.