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Lashinsky of FORTUNE Magazine: Privatization a "Huge Boon" to Wall Street

Reported by Marie Therese - January 24, 2005

On Saturday's Bulls and Bears host Brenda Buttner welcomed her stock analysts for the day: Gary B. Smith (realmoney.com), Tobin Smith (Changewave Research), Scott Bleier (hypbridinvestors.com), Adam Lashinsky (FORTUNE Magazine), Gary Kaltbaum (Kaltbaum & Associates) and Chris Russo (loser in The Apprentice Season Two and Senior V-P of Investments at Gunallen Financial). One of those analysts let the cat out of the bag vis a vis the privatization scheme of the Bush Administration.

Adam Lashinsky of FORTUNE Magazine said the following when asked by Buttner "But, Adam, he is viewed as a pro-growth, pro-business President. Do you expect that Wall Street will reward that in the next four years?"

LASHINSKY: Well, I think Wall Street will reward that if President Bush succeeds in rewarding Wall Street. And he's gonna try very hard. Let's make no mistake about it. If anything good comes from this talk about reforming Social Security, it would be a huge boon to Wall Street in the form of these private savings accounts, currently stuck in the Social Security Administration, going to brokerage accounts in Wall Street. They're salivating over this and that would be a really good thing for elements of the stock market."

BUTTNER: "It would be a good thing ...."

Later on in the show a consensus was reached that the next four years are going to be flat for stocks with occasional mini-bull and mini-bear markets and that tying your money to indexing via money market accounts is not the way to go.

Then Buttner asked ""You said the market is going to be flat. Many investors invest in mutual funds that basically mirror the market. So, why should they put their money in the market?"

BLEIER: "Because there is a chance that Bush is gonna be successful in reforming tax code and Social Security which would be a boon. But that's not a given."

The consensus of the analysts is that the next four years are going to be flat with occasional mini-bull and mini-bear markets and that tying your investments to indexing is not the way to go.


There you have it, folks. Straight from the horse's mouth.

Now, for my opinion.

A report in today's FInancial Times, says "(c)entral banks are shifting reserves away from the US and towards the eurozone in a move that looks set to deepen the Bush administration's difficulties in financing its ballooning current account deficit."

Wall Street has known this was coming. Greenspan virtually predicted it before Christmas.

So, let's see. Who do you think they're going to tap to make up for the fact that our economy doesn't look so attractive to foreign investors any more?

Let's see. Now who could Wall Street and the Bush administration target as their "mark"?

It would have to be a group of people that didn't know much about how money works.

It would have to be a large group of people with an endless source of capital.

It would have to be a group of people who'd been hoodwinked into believing that the sky was going to fall tomorrow.

The identity of the "mark" in the "sting operation" is clear. The "mark" is the American worker.

And what is the "con"? Why, to make John and Jane Q. Citizen so fearful that they'll hand over their hard-earned dollar bills to the "grifter" (Wall Street).

This "sting" has been unfolding for months now;

However, a "con" is hard to pull if the "con man" tells you ahead of time what he's going to do.

Enter Mr. Lashinsky.

Oops! Bad timing Mr. L!

We now know that Wall Street is "salivating" over our hard-earned dollars.

I'd like to see Steve Moore, Steve Forbes, John Snow, Neil Cavuto, the Wall Street Journal et al wiggle out of this one.

The cat IS out of the bag.

The cat ain't gonna climb back in that bag real soon,either!

After all, would you want to end up drowned at the bottom of a river?

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