Charter Says "Depart";
Council Wants to Stay.
Their Plea to Mayor:
"Save our Seats and
We'll Save Yours."
The travails of Wall Street eclipse other issues as the market struggles to establish a base. To oversimplify the situation, two forces are locked in perpetual combat: fear and greed. When greed prevails, the market rises, often to levels which are not sustainable. When fear prevails, prices collapse and stocks sell for far less than they are worth in terms of the earning capacity of the companies being traded.
If you can find the tipping point when fear surpasses greed, which was about a year ago, you could have become rich, especially if you used puts and calls, options, short selling, derivatives and other financial devices which magnify both risk and reward. We do not yet know when greed will surpass fear, whether it will be today or whether a new bottom will be tested, but history tells us we are at or close to the low point of the cycle.
How the City Council's tenure will affect the stock market is a mystery to us, but it was explained by Council Speaker Christine Quinn at a press conference yesterday in the Red Room (not the Blue Room, which is on the Mayor's side of City Hall). She said that the Council was working co-operatively with the mayor, and that stability and continuity were important in government and would benefit the city in these difficult financial times.