Ditching Grandma: Reexamining the Era of Economic Irresponsibility
Good-b CEO Monika Mitchell is the co-author of the upcoming book: Conversations with Wall Street: The Inside Story on the Financial Armageddon That Was and How to Prevent the Next One.
So here we are again, in economic LaLa land, waiting for the life raft that will save us from ourselves. The financial news this week is bittersweet for both Wall Street and Main Street. We are told the economy is getting “better,” yet the reality experienced on both sides of the Street reveals the truth.
DealBook reports that Wall Street is about to embark on massive layoffs. Credit Suisse, UBS, Morgan Stanley, Goldman Sachs, Bank of America, Deutsche Bank are poised to be among the first to reduce staff. Subprime mortgage traders who against all logic have floated to the top of the heap for the past two years as the rest of us struggled not to sink find their once secure jobs on the line.
So brace yourself- it’s going to be a bumpy ride. For those of you cheering for Wall Street’s soon-to-be unemployed, you might want to reconsider that. After all, if the financial hardship we have experienced since the mortgage market collapse has taught us anything—it has revealed that we are all connected-economically that is. In New York alone, these thousands of layoffs could hurt small business even more than it already has. Those with high paying jobs are often the customers that local businesses and restaurants rely on to pay the overhead. Income taxes support the public workers whose jobs and benefits are at risk.
Sadly, the era of economic responsibility that the Big O promised has never arrived for corporate America and the largest financial institutions. The big banks, as we have reported at Good-b, have followed an anti-capitalist too-big-to-fail model that leaves their profits their own and their lossesours. It has enraged the pull-yourself-up-by-the bootstraps population on both sides of the Street. It has also put us into a deeper hole than before.
The current deficit debate rages on in Washington with the nation’s elderly the latest victims in the on-going battle of the have mores versus the have less and less. Even the champions of senior citizen insurance AARP have abandoned the ship and agreed to cuts in Social Security. All the while claiming that Social Security “didn’t cause the debt and that it shouldn’t be used to lower it.” So it begs the question: why are they being asked to pay for it?
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