Tuesday, November 1, 2011
Last Thursday, the Dow closed at 12,187, and all the Investors, traders and other financial know-nothings were so happy. They were dancing and hopping about around like little bunnies. Yay! the European crisis is over... Yay! we now know we can take Greece and the fear of European Union dissolution off the front page... Yay! the Euro rallied so dramatically it knocked the US dollar hard, which exporters love and that means corporate profits galore!
As of 12:50p today, less than 3 trading days later, the Dow is at 11,667, having dropped 520 points. (Oil is also down another dollar- no coincidence) The Dow should really be down another 1000-1200 pts lower based on where the Dow was at the beginning of October, before all these pollyanna EU hopes and wishful thoughts, but that's a bone to pick for another day. We'll also ignore the talking meatsticks on CNBC continually telling you to Buy! Buy!.
But we won't ignore the 'I told you so's'. The deal in place where everyone took minimal losses and which no specifics or details of a plan were given- just the basic outline of on, should have made the market drop rather than spike. They were fucking idiots to get excited over Nothing and yes, A&G told you so.
The fact so many roaches and rodents treated nothing as 'great news' and pushed a massive rally on Thurs. showed how deeply ignorant these people are who invest your pensions and state/city municipality funds; amazing how much trading is based on emotion, guessing and following the pack, rather than intellect.
So why the drop?
Well the short answer is basically that the country that is the birthplace of Democracy is finally going to be instituting some via a referendum vote on the deal.
'Sacre Bleu! -How dare they?', the French say. 'Vat a bunch of Dumkopts!", scream the Germans. And the Americans? Those in finance are saying, "Why is this peon little nothing of a nation affecting our ability to increase our stock dividends?"
Seems no one likes the idea of a direct, straight-up vote by Greece's populace- the French.. the Germans.. not even some Greek lawmakers: "The Greek government faced possible collapse on Tuesday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy with a shock call for a referendum... the leaders of France and Germany summoned Papandreou to crisis talks in Cannes on Wednesday to push for a quick implementation of Greece's new bailout deal ahead of a summit of the G20 major world economies." -- AP
Direct Democracy-- let the people vote. Isn't that just terrible?
We state this over 'n over in our postings so people understand who politicians of all parties of All nations truly serve- Investors. They are the world Royalty. Their needs and wants and wishes come first- they buy the bonds; they buy the debt, which allow nations to overspend and get themselves into even greater debt. And their role in the economic food chain is not unlike maggots who feed on feces and other waste, except in the real world, humans do not institute economic and political policy to cater to flies and dung beetles.
The Grecian people have gone through economic hell; a suffering the people of Ireland, Portugal, Italy and Spain are just beginning to experience; a level of suffering that one day will affect Germany, France, Britain and the US in due time. The Greeks have suffered repeated austerity, high unemployment, privatization of their roads, airports, lottery,etc and for all purposes, are being financially occupied by the banks much in the same way they were physically occupied by the Nazis in WWII.
So at least now they get to vote- do they support the plan? Do they wish to default? Is returning to the drachma better than keeping the euro as its currency?
The people speak.. they get to vote..
And the money-junkies are Pissed.
Would be nice to see the Greeks vote the EU deal down and force them to come up with better terms or force Merkel and Sarkozy to admit bitter defeat, letting Greece default as they should have two years ago. But when you are in power, you don't usually allow things to be left to chance, especially silly things like elections and the will of the peons (you and I call them people), so still many twists and turns in this soap opera.
Hold onto your hats...and your cash.
Posted by Susquehanna at Tuesday, November 01, 2011