Wall St. Elite Back To Making Big Bucks; Main Street Still Crumbling
The earning season each quarter has turned into a let’s see how much money the Wall St. banks are making. Goldman Sachs (GS) and JP Morgan (JPM) both made billions in profits this past quarter. That’s great. These banks are back to making insane profits and most likely will distribute insane bonuses to their executives. So, the rich Wall St. folks are back to pre-recession income levels. Is that the purpose of the government stimulus?
I beg the question because as I look around at the real economy, the government stimulus is a joke. Unemployment is continuing to rise and individuals are continuing to struggle financially around the country.
Without going further, let me make clear the following two points:
- I don’t have a problem with banks making billions of dollars – unless it’s subsidized by government tax dollars
- I don’t believe the stimulus should have been passed even if it were crafted to be more effective for main street – I believe in the free market at every level
So, as our currency gets pummeled because of the Fed printing money and our government spending, the effects on main street are anemic. Yes, we need healthy banks for a healthy economy, but is billions in trading profits at Goldman Sachs really the definition of what we need for a healthy economy? I tend to doubt it. Credit conditions are still crappy, but these banks are killing it in their trading areas.
Are you happy that your leaders borrowed from your kid’s generation in order to assist Wall St. in making a few extra billion this past quarter? Is this the change you believed in? Time to wake up folks.