Breakout

Market Highs Prompt Main Street to Forget About JPMorgan and SAC Scandals

Jeff Macke
Breakout

Remember the "outrage of the masses" over Wall St. corruption? Gone. The Occupy Wall Street crowd has been bought, paid for and neutered. Quelling the riotous masses didn't require tear gas, or fire hoses, or attack dogs. Big Media isn't working with corporate overlords or politicians to mask the existence of angry masses beating down the doors at JP Morgan (JPM) or SAC Capital Advisors as they finalize the terms of their respective settlements.

When it comes to anger towards Wall Street there isn't a story to cover. The truth is Main Street doesn't really care much about the dark relationship between Washington, DC and big banks anymore. Record highs on the Dow Jones Industrial Average ( ^DJI) and S&P 500 (^GSPC) are sedating the once-angry masses.

Related: Justice Barley Served in JPMorgan's #13B Settlement: Harrison

My Yahoo Finance colleague Lauren Lyster makes a compelling case for outrage in the attached video. As she astutely observes, average Americans aren't really benefiting from the stock market rally. "The sector that cares about all-time highs I don't think is the same sector that cares about whether or not JP Morgan settles," Lauren points out in the attached video. "Participation by retail investors and average people in the markets is not what's driving these all time highs."

She's right. Mutual fund flows remain negative. Some of that investment money has been soaked up by mutual funds but a meaningful amount of individual investors' cash remains on the sidelines, burned once too often by crashes and scams.

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So Americans are skeptical about the economy, angry about politicians, and incensed over Wall Street. Yet for whatever reason JP Morgan is weaseling out of a $13 billion and no one seems to care. The news isn't trending on Twitter and can't be found at all on the front of the NYTimes.com or most other sites.

Related: SAC Capital Deal with U.S. Prosecutors Gets Closer - Source

No one cares about breaking up or even fining the banks. Unemployment is still above 7%. If the economy were growing any more slowly it would literally be going backwards, yet we can't even be bothered to read about JP Morgan or SAC's decades of insider trading or anything else related to corruption.

Also the Dow is at all time highs. Coincidence? I no longer believe in them.

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