A top CNBC.com headline: Is the Stock Market Dead? ‘There Is No Trust Out There’
Armed with his sandpaper voice and a fire-and-brimstone preacher’s zeal, David Darst bemoans the lack of investor confidence and participation in the stock market, and its ominous implications.
“They have lost faith and trust in politics,” he begins at a speech delivered to hedge fund managers. “They have lost faith and trust in the political powers in Washington.”
The loss of faith and trust, he says, extends beyond the stock market to societal institutions all the way to religion.
“There is no trust out there,” says Gerald A. Barbara, a senior vice president in charge of alternative investment practices at U.S. Bancorp [USB] who thinks that stock investing still matters. “Once that comes back, everything will fall in line.”
Regular investors, though? Darst thinks they’re haunted by three “Ts”: Trust, Transparency and Trauma. They lack trust, they want the market to have more transparency, and they’re forever worried about the succession of trauma they have had to endure.
“This is a crisis not of the stock market,” he bellows. “This is a crisis of legitimacy.”