Open Letter to Wall Street from Main Street
This commentary originally appeared on MainStreet.com April 23.
Dear Wall Street,
This is your cash-strapped cousin, MainStreet, writing.
How the heck are you? It's been a while. You seem to be doing great. I know you were going through some tough times, with the whole financial meltdown, but with the big bailout, the stock market coming back, and those enormous bonuses, it seems like you're back on top.And that's just super. We're happy for you. But to be honest, cuz, things aren't going so great here on Main Street, and that's why we're writing. You see, that recovery that you guys are enjoying on Wall Street, the one that's funding your huge salaries and bonuses, the one that we made possible through a taxpayer-funded bailout... that recovery hasn't really made it to Main Street. I know you're super busy following the markets and buying gold and stuff, but the news from Main Street remains pretty troubling. The unemployment rate is stuck at 9.7%, which is close to a 20-year peak, foreclosure rates continue to rise while housing prices drop and personal bankruptcies are up sharply. Plus, banks still aren't lending. It's tough to get a mortgage, but it's REALLY tough to get a small business loan. According to some estimates, the credit market is tighter than it has been in 30 years and it could only get worse for us when interest rates start to rise, which is bound to happen sooner or later. Listen, I don't want to be a buzz kill. I know you guys are just starting to breathe easy again and enjoy your recently reconstituted giant piles of money, but we need to have a talk. People say that this financial crisis was everybody's fault. They say that Wall Street played a role, but that Main Street shares some of the blame too. But let's be honest with ourselves, and each other. We know that this is almost entirely your fault. Relax. This is not about blame or finger pointing, and yes, people on Main Street took on risky debt that they couldn't afford. That happened. But why did that happen?
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV