The big banks’ share prices are signaling that the day of reckoning is coming in 2019.
By Pam Martens and Russ Martens and cross-posted from Wall Street on Parade
Inevitably, investors get the kind of Wall Street they demand and deserve. That’s a paraphrase of the French philosopher Joseph de Maistre’s view on an engaged or unengaged citizenry: “Every nation gets the government it deserves.”
As groggy Americans arise this morning to face the reality that their holiday escapism is over and it’s back to the grind of work and daily doses of White House tyranny and dysfunction, at 8:00 a.m. Dow futures were pointing to an approximate 300 point drop at the open of trading in New York following the worst December for stocks since the Great Depression.
In short, Americans have gotten both the stock market and the government they deserve for failing to meaningfully reform both following the epic 2008 financial crash which pointed so clearly to unprecedented corruption on Wall Street and within the corridors of power in Washington.
Americans’ failure to demand real reform of what Senator Bernie Sanders has correctly called a business model of fraud on Wall Street means that those same behemoth Wall Street banks that crashed the financial system in 2008 are even more dangerous today. For its part, the Trump administration has become a willing enabler to Wall Street’s financial hubris by putting its former lawyer, Jay Clayton, in charge of the Securities and Exchange Commission and a former foreclosure king, Steven Mnuchin, in charge of the U.S. Treasury and the Financial Stability Oversight Council.
Wall Street banks have now grown so massive and interconnected that they are in a position to determine the very future of this nation. The big banks’ share prices are signaling that the day of reckoning is coming in 2019…