Thursday, August 11, 2011
Skimming some of the financial sites and news sources as of 6:45a.. Pretty much all stating they expect a dramatic rebound in the market today. Funny- never knew it was the position of news articles to make bombastic pronouncements and predictions. But maybe that's what the financial news media has degenerated into- from subtle molding and shaping of news within the content of the story to forced declaratives in the headers.
So will the markets dramatically spike on this fine Thursday? Who knows.. really don't care. A&G is not about giving financial advice or profiting from the 'dips' as they're known. We focus on all the other aspects the media conveniently ignores- essentially the bottom 98% of Americans.
And the truth is this: Let's say today at closing, the Dow went up 5000 pts, which is a really exaggerating figure which will never will happen in a billion years.. but let's say it does.. what does it really mean to normal people?
Would it mean the prospects of finding work dramatically improves?
Would that mean home prices stabilize or get closer to that point?
Would you really expect the Fed to do a 'turn-around' and change its mind on suffocating the interest rate to near zero for banks till 2013?
Would S&P look at the US and say, 'Wow, a 5000 pt rise in the market.. Gosh, we were sooo wrong to knock down America's credit rating'?
Of course not.. All that would happen is parasitic cockroach investors would make a killing, the news media would propagandistically trumpet the rise as if America's economy is Strong again, and you better bet your sweet bum-bum, there'd be a huge sell-off on Friday of about 5000pts as those morally bankrupt investors and traders would be locking in profits.
So really, A&G doesn't care if it goes up or down.. We were involved back in the day when it wasn't quite so rigged (pre-2008). Did quite nicely in fact. Learned a lot in the process.. among the most important lessons was that Wall St has little bearing on the lives of everyday people beyond 401k and pensions. When the market does very well, you don't feel any benefit, and when the market is put in its place, the little person feels the affects.
So, to be honest, while we don't care what happens tomorrow or any other trading day, A&G would prefer the market continue going down & down.. A falling stock market is really the only way to punish Wall St, the banks, insurance companies and investors without individuals doing anything illegal and foolish. A&G will never be pro-Wall St. We understand the beast too well to have empathy for it.
Posted by Susquehanna at Thursday, August 11, 2011