The four headed monster comprised of the Internet, the advance of digital media technology, satellites, and Wall Street, at first helped caused an economic expansion. Now, this four headed monster demands to be fed, and main street is the happy meal it seeks out.
Wall Street no longer creates anything, they simply recombine something that already exists, and they appear to take the biggest cut for themselves. That is the essence of the four headed monster that is destroying the U.S. economy and soon the world's entire economy.
This four headed wall street monster can multiply, securitize, then re-multiply ANYTHING, many times replicating the same product in different markets than disappearing with the upfront bonuses and fees that have already been collected, long gone before the house of cards collapses.
Wanna place a bet on which state will have the most foreclosures, wall street will offer some type of securitized fund. Want to securitize any future failure? No problem, Wall Street will securitize it and profit handsomely on the front end.
and there in lies the problem.
If Wall Street put together deals that had a reasonable profit cap on what they could earn, and if the money was paid out over time instead of upfront, maybe, just maybe, we could learn to live with the four headed Wall Street Monster.
Instead, the upfront, over the top profits that Wall Street creates for itself simply motivates Wall Street to reinvest using the same profit paradigm as before, a new financial product that once again creates nothing but a temporary increase in value that ends up in wall streets pockets.
I don't know if there is a solution, but until we de-emphasize wall street's role in growing real jobs for main street, we are whats for dinner.