My Rant for the Day

Financial asset inflation is what “Wall Street” loves and wants.  That is why “Wall Street” has not balked on the failed monetary policies of the Federal Reserve System.  As a matter of fact, it wants more trillions, not less, to continue the price inflation of financial assets.  When I make reference to “Wall Street” in this context, I am specifically referring to investment advisory firms, investment bankers, and security firms.  In other words, Wall Street would include any security entity that generates revenues by either providing investment advice, manages funds for clients, or buying/selling of securities.  Even though these investment entities know full well that the current polices on the fiscal side of deficit spending (spending > tax receipts) have failed.  (From a mathematical point of view, the economy cannot generate debt growth (9%) that exceeds income growth (2%) over an extended period of time without going bankrupt.)  Never-the-less, they want greater monetary easing on the part of the Federal Reserve System to goose the price of financial assets in order to generate revenues for their benefit, not for the benefit of the economy.   I know the counter argument is that these firms really believe that Keynesian economics has not failed us.  All what is needed is an additional trillion dollars here and there to get this economy out of its malaise.   Yes, some really do believe that by creating something out of nothing is the economic panacea.  However, I still believe that there is a greater conflict-of-interest than the investment public fully realizes between the self-interest of these investment firms and the Fed.  It is simply the nature of man, which is sad but true.