If you ever had any doubt about the bipolar nature of Wall Street, take the latest example. Last week Senator Chris Dodd mentioned the possibility of nationalization of banks and the market tumbled. This week, it looks like Citigroup will become in effect an nationalized bank and the market rallies. What gives?
My opinion is that the guys who make the trades on Wall Street are drinking way too much Starbuck's and not getting enough sleep. If they were anything but stockbrokers, they would be in treatment by now.
It is weird how our economy is influenced by a bunch of gamblers making side bets on the strength or weakness of various companies. The craps table that is the market has changed from investors, the kind of people who put money into a company because they believe it has long term potential, to slot players. These guys slam funds into whatever they think will bring a fast return and when the first pull brings up lemons, the flee for another opportunity.
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