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.

Read more...

The Daily Market Reversal

Up Friday, down Monday, up Tuesday, down Wednesday (4.22). Just like that terrible commercial, "you buy and sell the same stocks, again and again." Yep, that's what they're doing. Buy em today, sell em tomorrow, ad infinitum.

Is this market getting to be like a stuck record, constantly skipping back and forth and ending up in the same places? Sometimes it reverses direction daily for 4-8 days in a row. It makes asolutely no sense. One day financials are 'headed for doom', they and the market plunge. The next day, the feds speak, change some rule, and suddenly financials are covered by shorts, 'scrambling like scalded monkeys' ( thanks to Jeff Macke), and the market goes back up. Lately, it's almost like clockwork. A clock with just two settings: light and dark (up and down).

Someone is obviously playing the same old game with us to get churning, trading, commissions, whatever - and the TV propagandists like CNBC are all part of the disinformation game. They just sit there making up news and rumors, then laugh when the market reverses and some sectors, usually financials, move 20%. It's getting very old, and they are losing investors for good whom they should need.

Apparently not, this has become a poker game for insiders only: floor traders, hedge fund managers, big brokerages. The little investor is unwanted and can't pay the huge buy-in required, apparently millions per entry, or you don't rate being in the game.

I think the market professionals didn't really like having the average person in the market, so they figured out a way to get rid of us - all the millions of small IRA and 401 accounts aren't worth the time and effort to do the bookkeeping. If you don't have millions, and allow the brokerages to leverage that for their own use to manipulate stocks in collusion with their colleagues and hedge fund minions, then you're of little use or value, or "the capitalists don't want you."

This has become a game of and for big money only, who are trying their best to eradicate the lower and middle classes from spheres of influence. What they want and may have created is an autocracy of big money - a government by, of, and for the wealthy only. After all, "they create all the jobs", if you listen to the neo-fascist leader of white America, Larry Kudlow of CNBC - the same bozo that was an economic advisor for Ronald "spend like there's no tomorrow" Reagan, who later admitted after the 1987 crash that "the U.S. economy is a house of cards."

Kudlow thinks if you keep giving capitalists a free reign, their immense wealth will "trickle down" to the little guy. Well, that obviously doesn't work: they take what they can steal and smuggle it out to foreign countries with secretive banking, where the U.S. can't get to it, and they can retire both wealthy and out of reach. The joke on us is that millions still believe this, thinking that capitalism is a "lottery they can win", like the housewives paraded for us on shows like Donny Deutsch's "Big Idea", pretending that "you too can get rich with a good idea". Fat chance, I'd be much better off playing the Don't Pass line at any craps table in Nevada, betting against the shooters and with the casino.

Too bad we can't really bet with the casino here. If you buy the stock of a successful company, there's no guarantee they still won't steal all the money and go bankrupt, it seems to be the true American way. In fact, in 1987 some brokerages also went bankrupt and angry investors had to wait for the feds to get around to paying their money back at a pace even slower than the Katrina victims rescue. Let's just hope it doesn't take half a century like it took the Swiss banks to return money stolen from the Jews by Nazis in WW2; they gave it to Israel because this was money without any living heirs, but they held the billions for over 40 years, and no one knows really how much was there, or how much went to other nations' banks.

Money knows no boundaries or politics, and has no ethics to worry about.

Read more...

Will the Right Wing Leave Obama Alone Already?

I can't believe the right-wing media. Now they're blaming all the stock market drop since the inauguration on Obama, as if the financial situation just happened when he took office. ..and the whining about more taxes for the rich, give it up already - it's not enough extra to worry about in the light of everything else going on, or "no one cares about the tax problems of the wealthy anymore (if we ever did)."

First of all, any new remedies take time - he's been there, what, 45 days?

Second: the stock market and its prices are manipulated daily by collusion and hardly represents any kind of reality. It's the reality created by hedge and mutual fund managers and day traders. They think they can affect economic policy with daily market gyrations.

Third: we just gave these clowns a chance and look what happened. Unregulated capitalism = volunteered slavery. We may as well just send corporations our paychecks and let them volunteer how much taxes they'll allow the feds to have, they run things anyway - and once again: look at the result.

They wave the S word (socialism) like a new scarlet letter (see Hawthorne, you illiterates!) when the new bad one should be the C word. Something must be better than this, look at Denmark: 60% taxes, but then the feds provide everything expensive and even pay for social clubs, so 80% of the population are members, the same percentage that goes to church. Apparently 20% of the population are hermits (likely writers and artists) off alone somewhere. And they were found to be the "happiest country" after a 10 yr study. Need a heart transplant? It's free.. so is dying of cancer for years.

This certainly isn't Obama's creation, and the falling market isn't either; it had already been destroyed and will take a minor miracle to reverse at this point. The traders will stop whining, forget about 10% more taxes on what's basically free money anyway (well, you pay in stress) and realize there's more room on the upside at this point. It's just a manipulated numbers game anyway, not connected to any reality but its own.

See the real way the market works in the "Buying stocks doesn't drive the price up" post, based on a 10-yr study of the 1987 crash.
lawrence jose sinclair

"Don't you be calling me the C word!"

Read more...