The distortion that’s now taking place in the U.S. economy is unprecedented. There are artificially low interest rates, companies that should have gone bankrupt were rescued with taxpayer debt, and the Federal Reserve has basically become an instrument for Wall Street’s fulfilling its desire for short-term gains over all else. I fear the conclusion to all of this.
No other large economy in the world is more able to right itself after a shock than the U.S. economy. And no other stock market is able to recover so quickly. This has been proven time and time again, but the key to this recovery is to allow bad businesses to fail, and to let better-managed businesses acquire and reinvent the good pieces. The U.S. economy is based on free enterprise, but it isn’t so free anymore. It’s worth noting, however, that Wall Street is the biggest champion of the Federal Reserve, even if it doesn’t want to admit it. Whether you’re an institutional investor or a short-term professional trader, it’s
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