Stock Market Rising
Recently, we have been bombarded by news that the stock market is doing remarkably better than it has been over the last year.
Despite the dismal news from lagging indicators such as unemployment and home purchases, the stock market has risen above 9,000 for the first time in many months. Insider confidence is high because the industrial sectors of many countries are rebounding.
Paul Krugman, a columnist for the New York Times, argues that for many on Wall Street and in the financial sector it is merely business as usual. Now that their companies are a making a profit again, CEOs are bucking against the meager compensation restraints that Congress is trying to enact.
Krugman makes the salient point that everything that is good for Wall Street is not necessarily good for Main Street. The new stock market practices such as high-speed trading are actually harmful to society. High-speed trading utilizes a computer that allows firms on Wall Street, as well as companies on that trade on the exchange, to makes trades a split second faster than anyone else.
However, if these stock market gains are not supported by a resurgence in consumer confidence,then whatever strides the country is making to get out of the recession will not be sustained.