Tuesday, January 6, 2009

MALL STREET vs WALL STREET

As President elect Obama said, Wall Street should not thrive while Main Street suffers. Any person with a small degree of education understands this. Wall Street has been the Wild West Wicked Street for a very long time and somehow, there was an ongoing chain of balancing that was put in place to keep superior Wall Street in better shape than Main Street but at the same time, keeping inferior Main Street happy about the overall situation. A run-on sentence indeed. The relationship between Wall Street and Main Street was a run-on, a peaceful coexistence that kept the overall steam engine of an economy running at all times. When Wall Street cried the Fed monetary policy would kick in, and when Main Street cried, the Fed fiscal policy would trickle in. I would like to create a graph here. Any thoughts? Okay let me just say that this (year end-beginning of year) rally has been a significant relief rally where investors are looking for cheap valuations after a damaging disaster of 2008. My question is " Can this continue while Obama has just said that things are bad and are likely to get worse? " Well, we know Wall Street is looking at 6 months down the road and perhaps we will find a bottom in this new 4 year administration, but many variables can change this picture around.

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