Wednesday, March 4, 2009

Change for the sake of change... is it a good thing?

Like many people, my head has been spinning since inauguration day with bills, budgets, stimulus plans, healthcare initiatives and the like coming rapid-fire out of Washington. One thing I also noticed was that with every new "plan", the nations financial markets took a nose dive. Also, every time the President would give tough talks about taking action against CEOs and hedge fund managers, it got even worse. Why is this? I think the answer is simple.

Since the inception of Wall Street in America, perception has always played a huge role in it's health and performance. Wall Street typically gives an immediate thumbs up or down on talk and policies as soon as they are introduced or threatened--long before the action of the programs have been implemented. Our financial markets make decisions immediately on things that are yet to come. It also provides a great barometer as to the viability of these policies and programs. In a nutshell, Wall Street has given a huge thumbs down to practically ALL of the administrations programs and rhetoric. And let me be clear on one thing: if our financial markets fail or become threatened, there is no social program or policy that will persevere. We cannot govern in the vacuum of ignoring the very source that provides almost all of the available working capital in our country. We need Wall Street just as much as we need good social programs and policies for our people. You cannot have one without the other. In just a couple of months, Wall Street has shed almost $3 trillion in capital and value purely based upon the perception that it is under attack from Washington. Let's restore confidence there as well as with our people and we'll achieve our goals.