Jason Zweig is a respected and widely-read personal finance writer. His column, “The Intelligent Investor,” has been published in the Wall Street Journal since 2008, as well as in other major publications. He is Editor of the updated edition of Benjamin Graham’s The Intelligent Investor, the classic text that Warren Buffett has called “by far the best book on investing ever written.”
So, when Zweig asks “Will We Ever Again Trust Wall Street?,” even Wall Street banks and the editorial board of the Wall Street Journal (currently in hot pursuit of Attorney General Cuomo) should pause and pay attention. As Zweig reported, a recent survey revealed that, on a trust scale of 1 to 5, with 1 meaning no trust at all, Wall Street rated 1.7. But that was in December. Today, may be closer to 1, wouldn’t you think?
Zweig recognizes that “[t]he foundations of the financial markets ultimately rest upon the confidence of mom-and-pop investors across the country,” which in turn rest upon a faith “that the system isn’t rigged to favor an undeserving few.” Then Zweig acknowledges that this faith “is partly delusional.” We suggest “wholly delusional” is more accurate.
In order for faith to be restored, Zweig continues, “Wall Street firms need to be forthright in admitting their shortcomings,” rather than adding insult to injury by (as we’ve seen them do) protesting their innocence. (Don’t hold your breath.) Zweig then suggests that “the Financial Crisis Inquiry Commission, formed by Congress in 2009 and now holding its own hearings, may help investors feel that Wall Street can own up to its mistakes.”
Can Wall Street own up to its mistakes and restore investors’ shattered faith? Should we ever trust Wall Street again? Is Ed “Too Tall Jones” too short?