Monday, May 20, 2013 01:24am
North Adams, MA now: 55 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
The Independent Investor: How Will Wall Street II Play on Main Street?
By: Bill Schmick On: 12:02AM / Friday September 24, 2010
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0

"Greed is good. Now it seems its legal."
Gordon Gekko, 'Wall Street: Money Never Sleeps'

The Oliver Stone-directed sequel to the 1987 film "Wall Street" starring Michael Douglas, Shia LaBeouf and Josh Brolin, opens Friday in the aftermath of two years of financial crisis that almost sank the global financial structure and put 9.9 percent of Americans on the bread line. Will this new film heighten or lessen Main Street's disenchantment with Wall Street? I'm betting the former.

The story opens with the nefarious Gekko, older and supposedly chastened, getting out of jail to regain his place within the financial power structure. I can't help but think how the victims of the convicted Ponzi schemer, Bernie Madoff, or the half-dozen other crooks that were indicted over the last two years will feel about that. Will we wonder if someday we'll see the same justice system release convicted culprits of this decade's financial crimes?

As it is, most investors (up to 90 percent) already believe the stock market is unfair to the little guy. The majority of us are only now realizing that stock brokers, financial advisers and insurance agents are not held to a fiduciary standard under current SEC rules. As I've written before, a fiduciary is someone who puts your interest above their own and their company.

So many retail investors have already given up on the stock market and its unscrupulous professionals that brokerage houses have begun to report disappointing earnings because of the anemic volume and lack of participation by individual investors. Analysts have been cutting their earnings estimates for the money center brokers as well.

It is my opinion that most Americans have still not forgiven Wall Street for getting us into this mess and with so many Americans out of work, why should they? As I've written before, the new financial regulations bill passed a few months ago was a farce and did very little to protect you and I from the financial services industry. Many of the excesses that got us into this mess are still very much alive on Wall Street today.

So when you pay $12 or more for a ticket to see the movie, be prepared for some in-your-face celebration of money and power. The characters in the movie will be flaunting the latest in power clothes and accoutrements, according to a story in Thursday's Wall Street Journal.

I was working at a global brokerage house in Manhattan when Mr. Gekko first descended upon our consciousness. I admit to emulating his "look" even though by the end of the show he was carted off to jail in ignominy. I found myself, along with just about everyone else I knew who was making the big money on The Street back then, squandering quite a bit of money dressing in contrast-collar shirts, expensive cuff links and two-tone suspenders. The new movie will feature custom-made $2,000 to $3,000 suits, handmade shoes and watches that are so expensive that I can't pronounce their brand names. How is that going to play with you and I who continue to cut corners, make do and forgo new clothes for our kids this school season?

The point is that this new "power style" was copied from what the people on Wall Street are wearing today. That's a far cry from most of us who get along in our LL Bean khaki dress pants and "wrinkle-free" blue oxford, button-down, dress shirts. Now don't get me wrong, I like dressing down and would never want to go back to those days of pinstriped three-piece suits, watch chain and wing tips. But just seeing those actors glorifying a culture that has driven most of us to the wall and gotten away with it makes me see red. To me, "it's about doing the right thing," words that I lifted from a line in the movie. But Gekko sums up the credo of Wall Street, which got us where we are today and will continue to drive the financial industry toward its next melt-down when he replies

"No, it's all about the money."

See it and weep. 



2Comments
Tags: Wall Street, excess, Gekko      
News Headlines
MCLA Graduates Handed Keys to Open Future Doors
County First Responders Honored For 'Saves'
Ashuwillticook Rail Trail Expansion Discussed at Forum
Berkshires Students Compete at State Latin Convention
Rudolf Steiner School Fourth-Graders Poetry to Publish
iBerkshire Tag Sales: May 18 &19
Williamstown Zoning Board Looks at Weston Field Plan
BArT Announces Second Trimester Honor Roll
Cultural Pittsfield: May 17-23
River Council Grills EPA on Silver Lake Cleanup
Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (102)
Independent Investor (137)
Archives:
May 2013 (5)
May 2012 (2)
April 2013 (6)
March 2013 (7)
February 2013 (7)
January 2013 (6)
December 2012 (8)
November 2012 (4)
October 2012 (6)
September 2012 (8)
August 2012 (7)
July 2012 (6)
June 2012 (9)
Tags:
Fed Unemployment Greece Qeii Taxes Markets Commodities Markets Metals Debt Energy Stock Market Europe Jobs Economy Japan Congress Pullback Deficit Election Stimulus Currency Recession Interest Rates Banks Debt Ceiling Oil Fiscal Cliff Federal Reserve Euro Rally Bailout Crisis Europe Retirement
Popular Entries:
The Independent Investor: Understanding the Foreclosure Scandal
The Independent Investor: Don't Fight the Fed
The Independent Investor: Does Cash Mean Currencies?
@theMarket: QE II Supports the Markets
@theMarket: Economy Sputters, Stocks Stutter
@theMarket: Markets Are Going Higher
The Independent Investor: How Will Wall Street II Play on Main Street?
The Independent Investor: General Motors — Back to the Future
The Independent Investor: Will the Municipal Bond Massacre Continue?
The Independent Investor: Why Are Interest Rates Rising?
Recent Entries:
@theMarket: 1995 Redux?
The Independent Investor: Sticker Shock in Housing Market
The Independent Investor: Online Education Is Not a Panacea
@theMarket: The Goldilocks Market
The Independent Investor: Where Others Fear to Tread
@theMarket: Five for Five
The Independent Investor: R2D2 and the Stock Market
The Independent Investor: Insider Trading Alive & Kicking on Capitol Hill
The Independent Investor: Japan: The Rising Sun, Part II
@theMarket: Two Steps Forward, One Step Back


View All
Drury High Prom 2013
Drury High School held its prom on Saturday night at the...
McCann Tech Prom 2013
McCann Technical School held its senior prom Saturday night...
MCLA Graduation 2013
MCLA held the 2013 commencement on Saturday.
Mount Everett High Prom 2013
5/17/13 Mount Everett High School held its senior prom...
Third Thursday May 2013
Third Thursdays returned this week. The Pittsfield festival...
Softball: Drury at Pittsfield
5/16/13 The Drury girls softball team traveled to...
Torchia SB League
5/15/13 The Pat Torchia Softball League, played Wednesday...
Williams College Children...
Jennifer Marlowe's prekindergarten class visited North...
LAX: Mt. Anthony at Greylock
The Mount Greylock girl's lacrosse team took on visiting...
LAX: Wahconah at Hoosac
The Wahconah girls lacrosse team traveled to Hoosac Valley,...
Baseball: Monument at...
Mount Greylock rallied from down five runs to beat visiting...
LAX: Lee at Greylock
Mount Greylock took down visiting Lee 21-2 on Friday...
Lenox High Prom 2013
5/10/13 Lenox High School held its senior prom Friday at...
Softball: Drury at Greylock
Mount Greylock took on visiting Drury on Friday afternoon...
2013 BAM Con
The 2013 Berkshire Anime and Manga Convention kicked off...
Bike to School Day
Seventeen pupils from Clarksburg participated in Bike to...
Drury High Prom 2013
Drury High School held its prom on Saturday night at the...
McCann Tech Prom 2013
McCann Technical School held its senior prom Saturday night...
MCLA Graduation 2013
MCLA held the 2013 commencement on Saturday.
Mount Everett High Prom 2013
5/17/13 Mount Everett High School held its senior prom...
Third Thursday May 2013
Third Thursdays returned this week. The Pittsfield festival...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings | Berkshires Map |
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-473-8799
© 2000 Boxcar Media LLC - All rights reserved