Tuesday, January 3, 2012
Why a strong market is dangerous
On this beautiful planet Earth, everything has a physical pecking order. Birds fly high in the sky. Humans as well as other mammals walk the earth. Reptilians glide along the dirt. And aquatic creatures roam the depths below.
Then there is the filth; the bottom feeders. The creatures that move along and feed off waste and all the vileness that all most other living inhabitants of the earth walk away from (or flush down the toilet)-
They are roaches.. the rats.. the maggots.. the worms etc. etc.
And if we were to personify career professions to that of the animal world, then all those who work the trading floors of the various stock exchanges around the world, who invest and profit off misery would be those bottom feeders.
Its early-- only 10:30a and yet on the first official trading day of the year in the good ole' USA, the market is up +250pts at 12,468, and based on?
Solid economic news out of China... Really? So the Communist nation that pretty much Owns the United States and its debts, is now so influential that our red-blooded capitalistic stock market is driven by them?
The filthy rats are also excited about this: Oil Spikes on Growing Iran Threat (CNN Money) -- "Oil prices surged more than 2% for the second time in a week on Tuesday, fueled by continued anxiety over Iran's growing threat to shut down the Strait of Hormuz after the Iranian military launched a missile test."
Doesn't matter about possible war or how the increased cost of fuel can decimate global economies (already there's instability in Myanmar and Nigeria because of oil price spikes in the past week alone)...
So the market is up so far...
To work in any capacity on Wall St means you are a coward. It means you do not think for yourself but rather base investing on following the herd first, and asking questions second. It also means those in the investing and trading fields are no different than horses with blinders. Funny how this market chooses to Intentionally ignore news out of Europe like this:
Greece: No Second Bailout, No Euro (AP) -- "Greece's government warned Tuesday that the debt-crippled country will have to ditch the euro if it fails to finalize a second, euro130 billion ($169 billion) international bailout."
Everyone knows Greece can't pay it back. They can't pay back the first bailout. Euros down a hole... Smug know-it-all pricks on the trading floor in New York seem to think its not important. Certainly not important enough to stop a pretend rally.
Funny though- wasn't the great fear that if the Euro collapses, the global economy collapses? And if the global economy collapses, the world is in a deep recession/depression? Wasn't that the sputum we were all told?
And yet Wall St ignores it. Why? Remember- they are sociopaths. They don't trade based on care or concern for any person, nation or the globe itself. Vermin only think in the 'now'.. this second.. this moment.. and 'now' is a good day to profit.
You may be thinking, 'Why do we get so worked up'?
Its simple and the answer like truth itself is harsh. Most people are deeply lazy and proudly uninformed. They don't read or watch news beyond a headline skimming, have no clue what's going on it the economy beyond their personal life, and if the market shows +250, they think all is well and keep mindlessly shopping.
This is dangerous.
As long as institutions of power can keep up the lie that all is well, and the masses believe and accept that things are improving (when they're not), it allows those institutions the leeway to continue doing nothing, thus hoping the stale, tired strategy of 'confidence begetting confidence' will fix the economy on its own without having to alter any aspect of the financial system to make life better for the bottom 99%.
If the market drops -700 pts in a day, even the most simple minded simp understands its Bad and is awaken to problems outside of themselves. They grow scared and pessimistic which leads to more individual action such as public protest and voting out do-nothing incumbents.
And on the flip side, when the market jumps +700, most sincerely look at the economy and think, "Problems solved"
In order for things to genuinely improve, people collectively have got to start waking up and "squeaking" loudly for their "wheel" to get financially 'greased' like the banks and other financials have for three years now.
A nation that isn't afraid of or at least aware of its populace, is a nation that will do little to nothing to address their needs. Dow +250 days allow people to 'sleep in' emotionally and dream..