Based on rhetoric from both sides of the aisle, it’s clear that many Americans have lost faith in the government, banks and other long-standing institutions, including Wall Street. For decades, Wall Street has pretty much been the economic barometer in this country. When it’s doing poorly, people become concerned, even fear that life savings might be wiped out. And when Wall Street is performing well, everyone rejoices, but often with cautious optimism wondering how long it will last.
Why Wall Street is Important
Whether you distrust Wall Street or not, it serves a vital function in the U.S. economy because it keeps money flowing. Without it, we rely on bank loans; and without the ability to borrow, many would find it difficult to afford a home, establish credit or make investments that would benefit them later in life when they retire. The poor would stay poor and the rich would continue to get richer; there would be no in-between and few opportunities to grow financially.
Despite what negative feelings many have about Wall Street, its main function is to make the system grow, which when operating as it should, is supposed to benefit everyone.
Speculation surrounding changes to legislation that will loosen some of the restrictions placed on the market has helped boost shares of financial companies. The good news is that not all hope is lost in Wall Street, as we have seen record gains over the past few months despite the political discord.