JCL Blog

The People Have Voted: Wall Street Still Not Safe

In our country government is less powerful than business.  This is probably the most visible in the military industrial complex, but there is evidence that the lobbyists call the shots in other areas as well.  A few months back I wrote in this post that Wall Street would not be regulated until it decided it was in its best interest to be regulated. 

Since then our representatives in Washington passed the financial reform bill in an effort to manage the forces that lead to the last melt down and possibly prevent a repeat.  During July, the very month the legislation passed, individual investors took $15 billion more out of equities than they put in, and so far this year, the total cash flow out of the stock market has been $33 billion.   The people are voting with their wallets and the verdict is that the stock market is not safe for the individual investor - reform legislation or not.  

If you don't know who the sucker is at the poker table -- it is probably you.  A couple more years of this and the Wall Street firms may just start asking for real reforms to reassure the public that the market is regulated and safe.