Henry Blodget: Why Wall Street Always Blows It

Posted by Kendall Harmon

Live through enough bubbles, though, and you do eventually learn something of value. For example, I’ve learned that although getting out too early hurts, it hurts less than getting out too late. More important, I’ve learned that most of the common wisdom about financial bubbles is wrong.

Read it all.

Filed under: * Economics, Politics • Economy • Credit Markets • Housing/Real Estate Market • Stock Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General

3 Comments
Posted December 30, 2008 at 5:00 pm [Printer Friendly] [Print w/ comments]



1. Byzantine wrote:

Wall Street benefits enormously from the US tax code and monetary inflation.  Among other things, the tax code diverts billions in savings to fund managers who otherwise would have to work that much harder to attract investment dollars.  Thus, there is a big atmosphere of moral hazard and OPM (Other People’s Money).  Long term though, the Street generally gets it right:  home prices don’t go up forever; Enron was just a middleman; (fill in the blank).com doesn’t actually make anything; etc., etc.

December 31, 11:46 am | [comment link]
2. Irenaeus wrote:

The tax code diverts billions in savings to fund managers who otherwise would have to work that much harder to attract investment dollars

How so?

December 31, 5:02 pm | [comment link]
3. Byzantine wrote:

401k’s and IRA’s.

January 2, 10:20 am | [comment link]
Registered members must log in to comment.



Next entry (above): Telegraph: Women bishops demonstrate the Anglican tradition of compromise

Previous entry (below): Kevin Depew on the Automakers, the Banks and the Elephant in the Room

Return to blog homepage

Return to Mobile view (headlines)