Wall Street was just try to gain the profit.

In 6th Oct 2010, Paul B. Farrell posted an article in Wall Street Journal. It is called “The Fed is dead, maybe by 2012”. In the article, Paul pointed out Wall Street destroyed US capitalism, democracy, and the dollar’s global reserve currency status. He even listed a timeline of how does it do that. And the American Treasury secretary and most economists are not trustable.

In the past three years, the most important event is the global financial crisis. And the source of it is the subprime crisis created by the Wall Street. If we look back to the bonus of Wall Street chiefs, I’m sure you will be very surprise. According to their words before the financial crisis, they must lose much money, but the real situation is not like that, in such a hard time, many people still got an unbelievable high bonus. From this example, we can see that, the points of Paul are right. Before 2007, the global economy showed a strong increasing, the number of money in stock market are increasing crazy. Wall Street fund managers are all pound of their investments, subprime circle was considered as the perfect model. But the real world would not always go like they hoped, Iceland government and 130 US banks were the sacrifices of their perfect model.

I don’t know will the real world go like Paul’s timeline, but the warnings in his article are too much pessimistic in my opinion. But there is another question, most people gain the super benefit from the asymmetry information between each other, and the asymmetry information will always exists. So the Wall Street is just did the best thing which could make them get the most profit. In business competition, delude the competitors is just a normal tool to get profit. It is a gamble, somebody loss and somebody win, the only different is Wall Street have more capital to do this gamble, even the capital they have could influence the government and destroy an economy. They do the pridict and then use the capital they have to influence the market then get the profit they want.

About the new, stronger post-capitalist economy which Paul reminded in his article, maybe it will, maybe not, we don’t know. But if we assume it will, it should be after a very long time develops, at least it will not like Paul and Nassim’s predicts which Fed won’t exist in 25 years.