Thursday, August 4, 2011
Wall Street Gotta Have a Deal
Wall Street was active in the debt deal discussions saying that we had to have a deal. The problem was they never said what that deal should look like. The Republicans assumed that they wanted less taxes, less regulation, and less spending and they delivered. The problem is that the market continued its decline and Wall Street's economists have finally started to say what the problem is and how they recommend solving it. They are saying the problem is that consumers are not spending, companies with cash are not spending, and companies are not hiring. They are now recommending spending on stimulus. This is the position that Robert Reich had stated as long as a year ago. The problem that we have now is that this is the exact opposite of the deal just passed. To quote an old saying they are "a day late and a dollar short".