Does giving money to Wall Street constitute foreign aid?
I Wall Street really a necessary part of our economy?
- Anonymous1 decade agoFavorite Answer
Wall Street is good for America and the world for too many reasons to list here.
First, the misunderstandings of the bail out bill are creating more ire towards Wall Street especially when we see wealthy individuals appearing to have their hands out.
First, for every job on Wall Street, it is estimated there are at least 2 more support jobs such as clerks and administrative personnel.
Wall Street generates over $1 billion in personal income taxes for the City and State of New York.
Wall Street also creates a center of liquidity and point of entry of foreign capital into the American economy and valuable foreign investment.
What we've witnessed recently and especially in the last seven days reminds us nothing is perfect and investing does have risk, but without these centers of capital we'd be forced to invest our capital in foreign nations for a worthy rate of return and our future would be dependent on the politics and economies of nations that we wouldn't have any rights to as citizens.
Every Bear Market and market crash is unique, and it is after every crash we provision the conditions to prevent them from repeating for the same reasons, in 1987 the market crashed because of excessive sell orders created by program trading, in 1929 it occurred to excessive margin calls.
Since then, we've reduced and regulated the amounts of margin an investor can take one, and since 1987 we've placed defined limits of when the market will close if it sinks too fast and we can suspend program trading for any reason.
Just like every prior crash, the market typically recovers at least 40% and in the first 160 days, selling your holdings now may result in selling at the bottom. In either case, you should always define your risk profile and acceptable level of pain before investing and have the discpline to execute it.
- Anonymous4 years ago
in case you don't understand that Wall highway is the biggest part of our economic equipment then you certainly've genuinely no theory how the US economic equipment works or what capitalism is principally.
- demos_jonesLv 61 decade ago
Is the circulatory system really a part of your anatomy?