Wednesday, April 29, 2009

Are Foreign Enemies Crushing Our Markets?

I just did an analysis of the leveraged ETFs (exchange traded funds) for YTD in 2009. It doesn't look good, as nearly all are down vs the underlying indices. So whatever is causing this (management fees?), it's not a good bet for the public investor.

Jim Cramer of Mad Money (CNBC, the "Orwellian voice of corporate propaganda", and proud of it) is wrong that they have too much leverage, because options and futures traders have even more leverage (at least 10-1, 40-1 on futures?) and there are options on everything now - so you'd have to ban all leveraged instruments if that argument of his holds water. I've often thought the futures (especially trading off hrs) have way too much influence - a few guys overnight (Al Q on laptops in their caves using sovereign funds?) can sell em off and clobber the market's opening for no reason. I saw the Dow futures down 500 pts once (when worth 4000) simply because Brazil devalued its currency! WHY do we allow this? The futures should only trade when the market is open to allow immediate adjustments. Like allowing invidual investors to get out with a small loss, not wake up suddenly down 15% like the Brazilian pesata day.

No one seems to care, do they? - let's just give our petrodollars to our enemies who then use them to short the mkt and hurt us even more - this is madness! All this is giving "them" the weapon to kill our kind of gambling capitalism, where corporations survive based on market value! (I didn't realize this until the market runs on the most important financial stocks; suddenly their credit was worthless due to low stock prices). Plus they don't pay tax on the capital gains or dividends either - double whammy of investing 'Pearl Harbor'!

"We had to stimulate foreign investment" they would tell us - WHY?? Why not stimulate them buying goods and not wrecking our investment markets? This system of economics baffles me, it places us at the mercy of our enemies, who certainly don't want us to prosper through investing or it looks like our brand of corrupt capitalism succeeds for the average citizen, which I don't believe anyway. This only benefits those with enough capital to make more, pay huge executive salaries that only benefit a few, and also encourages the buying of politicians and agencies like the FDA, and if they NEED to pay off or contribute to all these to "get their policies invoked", then those must NOT be policies benefial to all, or they would have been implemented already.

Common sense, it there's any remaining in the face of total economic collapse.


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