Wall Street Holiday?

During the Great Depression Franklin Roosevelt declared "bank holidays"--in effect closing the banks  for a period of four days  to stop the frightened paranoia that was resulting in "runs"on banks. It created a cooling off period during which congress passed the Banking Stabilization Act. Shortly thereafter the FDIC was created and bank customers assets were insured by the government.

In our present financial crisis, once again, fear, paranoia, and misinformation are causing irrational fluctuations on Wall Street The market with no rhyme nor reason fluctuates  like a yo-yo on a string, up and down, reacting irrationally to this or that event, to what this or that so-called expert says. To what avail? Is anything of value being done on Wall Street? Is what happens on Wall Street helping to solve our economic crisis? Is Wall Street, at this point, doing anything for the common good of the country? I think not. The only ones benefitting are the brokers who continue collecting their fees.

My suggestion is that President Obama declare a "Wall Street Holiday"---stop all trading as of 4 PM Friday, March 6, and not resume trading until 9 AM, Monday, March 23. The players, i.e. the buyers and sellers can jockey around for position before March 6,  knowing that nothing is going change until March 23rd. This "holiday" will provide the country with a "cooling-off" period, a period of stability. Prices will be frozen; investors will neither make money nor lose money in that period of time. Brokers should be forced to take a two-week vacation and reacquaint themselves with their families. The public would be spared the fear and paranoia that results from the news media's concern with each and every fluctuation of the market. We would know that, at least for 16 days, our retirement funds are not disappearing into some unknown hole in the ground.

Some, I am sure, would consider such action unthinkable. The Wall Street Journal, MSNBC, Bloomberg News etc. would not be happy; but, on the other hand, it would give them a chance to do some serious analysis of our situation and how we got into this mess. Everyone considered it appropriate to close the markets in the fearful days after 9/11, and there were no ill effects. The shut-down in fact had a calming effect. That is what's needed now.

Meanwhile, the Obama Whitehouse could put together a task force of the best and brightest to examine and revamp the SEC from top to bottom--eliminating the possibility of a Bernard Madoff and the other mini-Madoffs.