I think Wall Street is over-rated. For starters it?s not that big. It's a small narrow little street in which Donald Trump?s building features in the middle more than anything else. And that famous bull isn't even on Wall St. It?s around the corner and up the street near Battery Park. I'd focus more on what Goldman Sachs are doing and saying. They run the show. The clowns on Wall Street are mere sheep. See: http://www.bloomberg.com/news/2011-05-02/morgan-stanley-joins-funds-buying-commodities-as-goldman-sachs-says-sell-.html
The Goldman Sachs building is also not in Wall Street. It's on the other side of lower Manhatten next to the former or new Wolrd Trade Center buildings and is the only building without a logo or name on the building. I guess they have no ego associated with taking everyone's money.
As for economy, I flew into NY last week and stayed in a hotel in upper Manhattan and went to a McDonalds after check-in. It was about 8pm and in front of me were about 30 black guys, so I thought crap this will be a long wait. Next thing the cashier said "attention everybody we have a problem with the EFTPOS machines and we are only accepting cash". Suddenly I was at the front of the line. Not one person had cash!!
You tout a recovery around the corner but I see a US economy that is bankrupt at all levels and has no ability to create jobs.
On the other side of the U.S., I visited Santa Rose in Northern California where the housing crisis has been most problematic. There the Bernanke effect has almost completely evaporated. Medium house prices in Sonoma County fell to $311,000. In 2008-9 they fell to $300,000 after reaching a high of $600,000 in 2006. The housing crisis there is far from over. Also saw 3 times as many homeless people in San Fran. They Should rename it San Bumsisco.
Pin your hopes on China and Japan but forget the US. If they cut the budget, the economy will stall. If they don't it will collapse.
KZL Price at posting:
54.0¢ Sentiment: LT Buy Disclosure: Held
