Americans have always hated Wall Street. People have always seen it as a parasite that preys on hardworking Americans without giving anything in return.

What is Wall Street? It is actually a physical street in Manhattan although it means much more than that. Wall Street is essentially a collection of the country’s largest commercial banks, investment banks, and insurance companies which help connect borrowers with lenders. Although it has played this role very well, it is hard to imagine life in America without it. New article: Things You Did Not Know About Wall Street

What would happen if there was no Wall Street?

The poor would suffer

U.S residents rely on Wall Street for mortgages, credit cards, securitized loans, and credit scores to obtain credit from those willing to provide it. Of course, the law gives borrowers the freedom to declare bankruptcy. Even for those who can pay, the national household debt seems to be too high. The great thing about this is that Americans have access to a modern financial system, unlike other nationalities who have to contend with greedy loan sharks. Wall Street, therefore, ensures that any surplus cash by the rich is able to reach the poor.

The middle class wouldn’t exist

Countries without a modern financial system don’t have the kind of upward mobility like that in America. It is the work of Wall Street to pool the national collective savings and transform it into several types of loans. That way, people can spend money they would ear later, now. People who spend such money very wisely actually make their future very bright. Working class Americans have used credit to get an education and even start businesses. That’s how so many people have made it to the middle class.

Capital investments wouldn’t be possible

There are thousands of Americans who dare invest in risky businesses. Yet the money they invest is majorly sourced as loans through Wall Street. Financial institutions pool together savings from millions of people and later lend to manufacturers of various products that are useful to the nation. It is through this system that many tech developers, farmers, and shopkeepers have been able to keep doing business. Yet so many of these businesses are so risky you would want to try venturing into. The role of Wall Street in this is to pool capital and spread the risk by lending to various people. That way, they create reasonable room for failure, which is the way capitalism works.

Wall Street exists to give a lot of people exactly what they are looking for. Investors with lots of cash want to constantly access their money without the possibility of losing it. Borrowers want long repayment periods for their loans and to take gigantic risks. So Wall Street comes up with savings accounts, stocks, money-market funds, and bonds to get money from investors. This money is then passed on to borrowers. In the end, both the investors and borrowers are happy. Do you still have a reason for hating Wall Street?