Wall Street to go through great change, but we have not decided what kind of improvements that it will be a long process, because we have to determine what is needed, as well as the United States is also a slow process of political, there will be strong controversy. Just a year and a half years, have five major Wall Street investment bank disappear, even if in accordance with the standards of Wall Street, which is an amazing change. So then what happens on Wall Street really is worthy of thought. If can answer this question, certainly earn a lot.

Now the U.S. government tends to anti-Wall Street. On the other hand, the current Treasury secretary who is a New York Federal Reserve Bank, the White House chief economic adviser Larry Summers who is an economist, is well aware of Wall Street, Bernanke fully understand. They argue with each other, this is the U.S. system. Parties to the face of society, face each other, verbal abuse, then achieved a consensus. Until the change of government, and then change direction to follow. From another perspective, this is a strong U.S. system: people can do their best for the role. So they do not always wear the same hat, but you can change roles.

Entrepreneurs to find funding to Wall Street, they have ideas, need money to achieve, whether it is to develop software with China, or a factory worth mentioning. A venture capitalist willing to provide funds, they are looking for an opportunity to find good ideas, so they found, if successful, that they can get a big profit, of course, we all can become richer. This is a great idea.

Wall Street, the real change comes from the First World War, when people start thinking about the gold from the United States to Europe, to pay their required war. But the reality is quite the contrary, people have regarded their gold shipped to New York store, until now also. Wall Street has followed up and developed. Dow Jones in 1915 was the best of times, and so far, up 85% year. After the war, Britain and France went bankrupt, the United States is wealthier than before, became much stronger than in Europe. New York became the financial center of the world.

I think the biggest scandal in history on Wall Street, Richard Whitney in 1938. He is president of the New York Stock Exchange, the country’s most famous stock broker. His theft of funds, theft of trust funds, stealing his wife’s money, to ensure the operation of his business because his business has paid. Later he was New York district attorney Thomas Dewey was personally arrested. Two Houdu Wei became mayor of New York, nearly 1948 election to become president. Thomas Dewey because the case before they can get promoted.

Wall Street had two important reform, one is the Securities and Exchange Commission, a rearrangement of the New York Stock Exchange, then Exchange is managed by a number of private groups dealer. As the country’s chief Exchange, who would have responsibility for their own public interests, when the two conflict of interest when faced with their own interests they will rely mainly. Richard Whitney jail, the New York Stock Exchange re-changed its structure, had become president of the Executive Managers.

Wall Street almost every 20 years, there will be a crisis, 1792, 1819, 1837, 1857, 1873, 1893, 1907, almost a generation of people forget the lessons of last fall, they come round again. After the 1929 crisis, quiet for some time, once again in 1987, and then the 2008 years. It seems that back 20 years, the law of the time. People tend to forget.

Although the middle might ups and downs, but long-term point of view, we have become wealthy. Not all, but people make money from Wall Street. Market is a long-term. We have created considerable wealth. In 1982, a quarter of a century ago, the Dow is about 780 points to 14,000 points in 2008, an increase of 20 times. Now about 9000 points, while down, but still higher than in 1982 more.

U.S. Treasury initiated the establishment of Alexander Hamilton, his starting point is for the benefit of the United States, so if an appropriate amount. People’s response to the crisis was swift and strong, regardless of the economic crisis or military crisis. We believe that debt can help us overcome the economic crisis. Unfortunately, in the past 40 years, the U.S. government increasingly dependent on government bonds, the purpose is not to overcome the economic crisis or military crisis, but to avoid making hard choices, to avoid anyone say “no.” GDP, the U.S. national debt is now 80% over the previous century, the proportion is even higher 50’s. It is estimated that next year will be close to 100%. More and more government revenue, will be used to pay debt interest. If people began to worry that the government refusing to pay the debt or deliberately caused inflation to reduce the debt, because the national debt in dollars, and if inflation, then the proportion of debt in the GDP will decline. If the people will demand to buy bonds, rising interest rates in order to protect their own interests, the government tax revenue will be used to increase the amount of debt. Soon, governments can not rely on bonds emergencies. If you have an emergency how to do? Our big trouble.

They say Wall Street only two emotions, fear and greed in the back and forth alternately. Greedy, people are making money, and then suddenly fear that the value of nothing, and quickly jump out. This is human nature. How kind, while in control to ensure their freedom, you have to let people try, they fail and success. In a free market, to be more losers than winners, that is, the process of the birth of wealth. Unlike playing poker, wealth is not evenly distributed. But can not protect people not let them fail. Sometimes this is difficult. This is the core of the free market.

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