You're Not a Scapegoat

Bloggified by Jake on Thursday, May 6, 2010

If you don't think Wall Street needs to be taken down a notch or two, Wall Street will make the case for you.

The rant really gets off on a bad foot early when the douchenozzle says, "I didn’t hear America complaining when the market was roaring to 14,000 and everyone’s 401k doubled every 3 years."

This is like a chef who cooks with tainted meat saying, "I didn't hear anyone complaining when they had plenty of food on their plates... but once they got food poisoning, they had to find a scapegoat!"

Scapegoating is the act of singling out a person or a group for unmerited blame. Scapegoats don't deserve the negative treatment they receive. Placing the blame for the Red Sox lost 1986 World Series entirely on Bill Buckner's shoulders is scapegoating. Blaming Jeffrey Dahmer for 17 murders is not. It's righteous blame.

If you build my house with frayed wiring and use pine needles, dried leaves, and oily rags for insulation, I might not notice at the time of purchase. I might even live in the house for a year or two and be happy with it, but when it burns down and I find out why, it's hardly "scapegoating" to point a finger of blame your direction.

Wall Street wants to pat itself on the back for creating wealth for years and years, but ignore that nothing was actually created. When you build a house, you are creating something. The economy improves because you have taken wood, bricks, wires, carpeting, drywall, pipes and shingles and put them together in a way that makes them more valuable as a whole than the parts were worth on their own.

Wall Street doesn't build houses. It creates nothing. It merely transfers wealth from one source to another without adding value. Wall Street cannot create value any more than the US Mint can create money by printing it. The more money that is printed, the less each dollar is worth. Likewise, the more houses that are built, the less each house will be worth. But, ignoring the primary law of economics, Wall Street convinced itself and its investors that demand for houses was infinite and therefore supply could never keep up, resulting in prices continuing to rise forever.

At best, Wall Street ignored a simple economic rule that anyone with a fifth grade social studies education should know, and negligently destroyed our economy. At worst, Wall Street manipulated markets for short term gains, maliciously indifferent to the inevitable destruction it would wreak upon our economy. Either way, the blame is merited.

0 sarcastic replies:

Subscribe to: Post Comments (Atom)