Tuesday, August 9, 2011
Perhaps if the markets actually resonated with the rest of the economy and were an accurate gauge like it was pre-2008 crisis, and if the Dow's value had not been artificially pumped by 33% by the Fed since March 2009 bottoms, we would be upset. But it doesn't resonate for real people and the market was/is artificially pumped, so we simply do not care about the drop.
And see, that's the Key.
A few months ago we stated that the stock market is supposed to work like a thermometer, reading the economic health of a nation and accurately displaying the proper 'temperature' so even the most everyday layperson can understand where things are at. The markets post-2008 did not do this because if it had, the Dow currently would be hovering at 7,000 and no one would be thinking 'recovery'. So thanks to market manipulation by the government (i.e. QE and other tricks), you've had what was akin to a thermometer reading 72deg. and sunny on a cold, wintry day-- Markets Strong- rest of US suffering in happy oblivion that all was well or getting there.
What happened yesterday in simplest terms is this: That broken thermometer telling you its 72deg outside, well now its fixed. And we as Americans didn't seem to like the reality of the new thermometer. Or perhaps let's alter the example from thermometer to a bathroom scale-- before, it was telling us we weighed 110lbs (or 160lbs for a male) when in fact we really needed to add 100 to the number to make it accurate. Now the new 'scale' does-- and its kinda sickening to see it blinking at us.
And the amazing and incredulous thing about this was most intelligent, sane people chose to treat the distorted scale as Real while purposely ignoring a peek in the mirror. Why? Because people honestly believe (wrongly) the strength and vitality of America comes from the strength and vitality of corporations, commerce and markets.
The strength and vitality of America comes from its people; it comes from Main Street; small & medium sized businesses and the spirit of community.
So let's get back to the beginning of the post- why is A&G not upset?
1) The markets as of Monday night is 10,809. Do you know where the Dow closed one year ago, on Aug 9, 2010? -- 10,698! In one full year after all the drops of last Thurs and Monday, the Dow is Still 110 pts HIGHER than last year. None of you lost Anything.. get it! You are exactly in the same place you were 12 months previously.. that is all.
2) That means the $600 Billion of QE2 that was approved last August has been Pissed away... wasted.. gone. And we're happy because it is about time people in America start getting Furious and demand Bernanke be Fired and QE3 to Not be allowed to occur.
3) Do you know what the price of oil is today per barrel? No peeking now.. around $77/barrel It dropped 12% in those two trading days. Did you know a couple months ago it was at $110? That means you pay less at the pump. Supposedly.. See, you should be, those Damned oil companies instantly raise prices when oil goes up yet wait a week or two to change the pumps when the price drops. Which is why Americans are still paying $3.85 on average for a gallon of gas when based on the price per barrel, it should be closer to $3.20,
4) Bank of America closed down 20.3%, Citigroup was off 16.4%, and JP Morgan, 9.4%. Say any more??. Three Rot-Rotten, Evil, Corrupt banks who were main contributors to the Crisis of 2008, and responsible for the US housing crash, lost money. Should Anyone be upset by this?
5) If you're a cockroach investor, you're buying in tomorrow or Wed because you see deals to be made among the carnage. So as long as there are parasites who do this,and people who root and cheer for them to come in and push the markets back up based on Nothing real, A&G will not be upset of what happened in the markets Monday.
6) We're Sick and Tired of people believing 'recovery'. And even if most do not, we're sick and tired equally that there isn't enough public anger and fury to tell the media- Stop Lying to us! Maybe today will cause that change. Remember, even if the worthless media say 'double dip', it still implies there was a recovery between 2009 and what we're about to go into, which is a Lie. We've been in a Non-Stop recession for over 3 years- People Must accept this truth because you can not properly or adequately prepare for your future without admitting your present state.
Personally we predict the markets will jump +400 pts based on investors feeling there's golden buying opportunities and/or Obama making a second speech that rah-rah's Wall St. Many we've spoken to, feel it will go down some more.. we'll see. Whatever it does or doesn't do, you should Not be having your money in the stock market in the first place! Do not invest in it- if you put your $$ in a sock or box, you may not get a return but at least you can wake up and know its still there. Even if tomorrow goes up say 400pts, the markets will be correcting further downward as assuredly as we'll be continuing to be in a recession going into 2012, um... we mean double-dipping.
Posted by Susquehanna at Tuesday, August 09, 2011