Wall Street’s Phony “Free” Market

3:37 pm EST August 17th, 2007 | News | 1 Comment

If only the rest of us got the perks Wall Street fat cats do.

Wall Street loves to talk about letting financial markets weed out the weak. But when the Street itself gets in trouble, it sticks out its little tin cup, asking for help. And gets it.

The subprime-mortgage-market meltdown is a classic example of the way small fry get devoured, but the whales of Wall Street get rescued. Here’s the deal: People with crummy credit who took out mortgages are being allowed to fail in record numbers. The mortgage companies that made those loans are being allowed to fail.

The Street itself? It’s bailout city. Even before the Fed made a symbolic half-point cut in the discount rate, it and other central banks from Switzerland to Singapore were trying to rescue the Street by injecting hundreds of billions of dollars into the financial markets and announcing they will put up more, if needed.

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One Response to “Wall Street’s Phony “Free” Market”

  1. mike Mid City says:
    August 17, 2007 at 11:33 pm

    Social darwinism apparently doesn’t apply to corporations. Not at least when they run the country.

    Bush the MBA President.