Wall Street is going to crash. With killing reforms, accompanied by the super rich, CEOs, crony politicians, and lobbyists, Wall Street will crash again. It doesn't matter how slow the recovery has been, the market will crash, according to Market Watch.
Banks have no memory of extreme crisis or of what can happen when a nation lets huge amounts of risk build up outside the required safeguards in economies. Bank insiders are short-term thinkers who discount long-term costs to zero, and pass them on to taxpayers.
Since the dot-com crash in 2000 when the Dow reached its peak of 11,722, to present day with the start market hanging around 13,000, Wall Street has lost an inflation-adjusted return of about 20 percent of consumers' retirement savings. Martin Weiss cautioned that a "historic world-changing event is about to crush the U.S. economy and stock market.”
Wall Street is like an immature kid. The king baby syndrome refers to people who never grow up and want what they want, when they want it, and that's always now. Kids will eventually fight back after this generation leaves them $70 trillion in debt.
Wall Street has fallen back into its business-as-usual culture of greed, and is totally blind to the public consequences of its actions.
Wall Street people tell lies to create illusions such as "investors come first" and "you can trust us," Paul Farrell said in the article. In all actuality, their loyalty is only to insiders.
Trillions in new debt yearly, no savings, big bonuses, as bailouts for banks continue, the Federal Reserve will continue to give Wall Street cheap money. No matter the reforms that take place, Wall Street won't change until banks hit rock bottom.
Addicts can't see their own faults. In "Confronting Reality" Larry Bossidy and Ram Charan caution: “The greatest consistent damage to businesses and their owners is the result not of poor management but of the failure, sometimes willful, to confront reality.” People on Wall Street are impervious to their own weaknesses, according to Paul Farrell.
Finance professors Terrance Odean and Brad Barber conducted some long-term research on American and Chinese investors. They came to the conclusion that "the more you trade the less you earn."
Nobel economist Daniel Kahneman proved investors are irrational in 2002. They're still irrational. Main Street's irrationality makes Wall Street a lot of money.
Wall Street's inability to think long-term makes another crash inevitable. This shortsightedness is setting the stage for a global catastrophe. Societies fail because their leaders only focus on the issues likely to explode in the next 90 days, Jared Diamond said, according to Market Watch.