Saturday, January 16, 2010

Krugman on Wall Street

Read his latest column here.

I must say professional investors can recognize easily the mentality of the Lloyd Blankfeins of the world. Theirs is the mindset of a trader.

Stuff, like a cycle, happens. Who cares there is a serious structural issue. As long as prices move up and down, and up and down, that's just perfect. Why fix it? Good traders thrive on such movements.

So what if those ups and downs cause ex-Wall Street phenom: such as huge unemployment, bankruptcies, recessions? They are only variables in those "ups and downs" of market prices. A Goldman Sachs would die if there were no market ups and downs. That's how serious traders make their fortunes.

Once you understand that mindset, then you understand why those guys testifying right now in DC are "clueless", Paul.

You just haven't been a trader.

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