Why would this be a bad thing?  Any business that was actually making real sales would still exist.  If Wall Street failed, Wal-mart is not going out of business.  And as long as we have Wal-mart,what else do we need?

I guess one problem would be when it comes to retirement.   But retirement money is all an illusion.  It’s Phantom Money.  There is this hope that there is a bigger sucker in the end.  (Now let me make a disclaimer.  I’m not saying investing bad.  I think it’s great, but the way most people invest is on the premise of a bigger sucker.)  It seems that basically upon retirement older generations sale their stock to younger generations.  The younger generations hope that a stock will one day increase in value that justifies the price they paid for it.  So they can then sale that to a younger generation.  So again why does Wall Street exist and why can’t it fail?

I know a lot of people will suffer, but aren’t we just prolonging an inevitable future?  As you can see from my tone I’m not a big fan of Wall Street.  But I really want to explore 3 possible scenarios of Wall Street failing.  I’m not an economist, and I only have so much space and time to write.  Excuse me if I don’t explain these fully.  All the scenarios start with some growing pains.

1.  Great Depression 2.0 –   The way the media presented it this is what we were headed for a year ago before the bailouts. 

 a. Anarchy -  in this situation basically you need to imagine Rwanda.  When their economy failed their inflation rate skyrocketed.  Imagine needing a billion dollars just to buy toilet tissue.  In this scenario if Wall Street failed the thought is it would send a shockwave through the world.  Fear would grip people.   “Fear leads to anger.   Anger leads to hate.  Hate leads to the dark side of the force.”  Basically people would run a muck because the system the trusted in had failed them.

 b. The 1930’s  -  Which is basically you will see people in soup lines and living bad until the economy turned around and went back to it’s old ways.

2. Depression then New System – In this situation people would learn their lesson. (which as we can see by the fact that wall street firms went right back to paying their employees too much is likely not to happen)  There would be more oversight of Wall Street, and we wouldn’t run around selling stuff that didn’t have any value to it.  This would be the equivalent to reinstalling your operating system on your computer.  Sure you wipe out everything and there are some growing pains, but now you make sure that you use your computer properly.  So basically bread lines and then good times under a new system.

 3.  No Wall Street, we invest for ourselves (Least likely to happen) –  Maybe we will get rid of  change Wall Street the same way the internet is getting rid of  changing the music industry.  Why do we need to pay people exorbitant fees to show us how to loose money?

 What do you guys think?   What do you think would happen if Wall Street was allowed to fail?

-Trillionaire Wood