Thursday, August 4, 2011
Brief post because I am under the weather..
The markets ended the day -515 to close at 11,380
They say weak jobs. Ha! Wall St never ever cared before. Why suddenly care now?? They expect the official unemployment number for July to rise to 9.4% tomorrow. Sounds accurate- then again they've been wrong so often and Wall St is Directly responsible for unemployment rising-- they're the ones firing people like crazy in the last month-- 5k here, 7k there.
Strong Dollar is another reason for the drop. Yes Wall St and the Fed does HATE a strong US dollar. It means weakened exports- less profit for them while more purchasing power for bottom 98% of Americans. And when did Wall St ever give a fuck about the average American citizen?
Ultimately this is the set up for QE3. The Fed meets next week in Jackson's Hole, WY. They want to give more free money.. just need political cover and something overt to show the need for it. A 500+ pt. manipulated drop is an overt reason as any.
Remember, for all this nonsense and theater about raising the debt ceiling and reducing the national debt, every dollar the Fed spends is counted into the National Debt. So if you cut $1Trillion from Soc Sec and Medicare and then Bernanke spends $1Trillion on QE3, you ultimately cut Nothing off the debt. All you did was hurt the poor and elderly and goodness knows, in Wall St's eyes they deserve it.
And let's not forget what else QE means in everyday live terms. When you're providing free money for cockroach investors to speculate with, its not just stocks they will buy. They buy commodities- oil, corn, wheat, electricity.. The more they buy into the commodity, the higher the price.. and that translates into more $$ you will spend to eat, to fill up your car, to cool or heat your home... That free money which adds on to the National Debt which you and your children will be responsible for paying back, also causes you greater expense in the present.
Its important you understand that. Re-read above if need be...
All in all though.. A very very good day. Many miserable people in Wall St.-- bitching and complaining on financial news like spoiled fat little children. Makes me smile-- been waiting a while for today.. Just a shame this is temporary. And a greater shame the Evil Wall St will get their way next week... they always do. The markets are artificially inflated by 33% thanks to the Fed and investors & traders Do Not deserve to make profit while rest of nation is in economic freefall.
Real shame we don't have a President who sees it the same.
Posted by Susquehanna at Thursday, August 04, 2011