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Friday, January 6, 2012

Investors Circle-yankin~

Ever sit at a friendly poker table with 4 other people, thinking you will be competing legitimately vs 4 separate individuals wanting to do well, and then later when you got fleeced, you realized you were really facing 1 person who financially propped up the other 3 players to make it look like a fair game?

The stock market is no different.

Today the Dow is somewhere over 12,000.  Now it should be under 8,000 if realistically based on the current economic climate.  But its rigged; propped up by government stimulus by 33%.

How am I so sure?

Investors Continue to Yank Money Out of Stocks (CNBC) -- "Investors yanked money out of U.S. equity mutual funds for a ninth-consecutive week despite a bullish 2012 outlook from Wall Street and a December rally that's carried over into the New Year. U.S. funds-not including ETFs-lost $1.1 billion in the week ended Wednesday, according to data from Lipper FMI. This follows a $1.7 billion outflow in the previous week."

What do take from that, beside the fact that the word 'supposed' should have been placed before the words "bullish 2012 outlook"?   Well it means that in the last 2 weeks alone, $2.8 Billion dollars has been taken out of the US stock market, in spite of the Dow rising 246 pts in the past 2 weeks betw. Dec 23rd and January 5th.

How does the market go Up when $2.8 billion investor dollars are being taken out?  Simple-  A bearded, bald-headed (fill in the cuss word) who runs the Fed Reserve named Ben Bernanke, has covertly covered that $2.8 billion drop plus additional funding to push the Dow up.

And why is this done?

The theory that confidence begets confidence.  You see a strong Dow, you will naively believe all is well... and you will open your purse/wallet.. or your credit cards.. and that will encourage businesses to hire.. and on and on, ba-da bing, ba-da boom.. Happy ending!

Whatever spin is given, the truth is that professional investors have pulled over $8 billion dollars in their own money from the stock market since mid November and used it to purchase bonds because they do not trust the market as a safe place to invest, and are anticipating the big drop.

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