Registered Investment Adviser Caleb Lawrence
The major averages enter the final hour mixed on little real news. The Philadelphia fed regional index fell 8.1 points in July to 19.5. Another victim of the post-election jump this marks the second consecutive decline and lowest reading since December. New orders and employment both fell significantly, prices paid dropped for a 4th month to 19.1.
The mainstream media does occasionally get it right with their opinion pieces. The New York Times recent piece on why “Wall Street is a Threat to the Nation”, while decidedly timid, did make a few good points. That said Wall Street certainly qualifies as a national threat, and has been evaluated as such by the intelligence services from a derivatives perspective. It’s history of nuking the economy twice in the last hundred years, first with the Great Depression in 1929 and more recently with the 2007-2009 financial crisis and great recession rounds out the picture. Were it a foreign entity it would have been bombed into the stone age. But, compliments of lobbying, a captured regulatory structure, too big to fail or jail continues its business as usual strategy of lie, cheat and steal at the expense of the citizenry and the republic. It was said to me as a child, fool me once – shame on you, fool me twice – shame on me, fool me three times – shame on both of us. With Wall Street currently working on a 3rd time compliments of out of control financialization, all I can say is watch out. Warren Buffet said it best, there are two rules of investing, 1 – Don’t lose money; 2 – Don’t forget about rule #1.