Tags

, , , ,

So, there’s apparently this Occupy Wall Street thing going on for a while. It’s showing mixed results: they are drawing attention to their 99% and “Occupy” chants, but they unfortunately don’t seem to be making any major impact on politics. Sure, they want to curb banker pay, change the way financial institutions are set up, and put America back to work, but will these desires ever materialize?

This is unfortunately probably going to be another one of those movements in history that will be all over the news, but then not exactly change the system as much as they hoped to. Someone asked me over dinner: “Hey, if these guys really get there demand through, isn’t the financial sector really screwed?”

Well, no. Because it is just one of those things that simply won’t happen. The possibility of major Wall Street reform simply will require much more momentum. The Republican party will (as an automatic given) defend Wall Street to their last breath. A good handful of Democrats will likely aid in the defense of Wall Street as well. What’s likely to result will probably a minor change here and there that will not majorly change how the banking structure works. If you are betting on financial sector rebounds, this is the least of your worries. Focus your attention on debt contagion.

The only possibility of the financial sector drastically changing will only come from a landslide Democratic victory. And even so, it will be quite a while before the Democratic supermajority gathers a bill and necessary votes.

So, if you are just focusing on the growth of your portfolio, the Occupy Wall Street movements shouldn’t concern you. Maybe that’s why the financial world is ignoring their protests right now.

Political note: I’m talking about implication on markets here, not political implications. And I’m not strongly opposing OWS in anyway. I’m just commenting on their market impact.

Advertisements