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Tuesday, August 7, 2012

'Hope' - The Official Word of the Economic Impotent

Yesterday global markets rose...  Um, ok.. it rose on what?

You know.. that empty meaningless word--  'Hope'

'US stocks rise on hopes of strengthening economy'-- Washington Post

And this early AM, 8/7/12, the headline out of Asia reads, Asian (stock) shares rise on sustained policy hopes (Reuters) -- "Investors maintained the hope that Europe will take further action to tackle its debt crisis and the United States and China will adopt stimulus measures to support recovery"

Based on What?

We personally 'Hope' every global investor loses their entire life savings and commits hari kari, but we certainly wouldn't wager on that 'Hope'

It used to be pre-Lehman Bros. 2008 crisis that the market rose based on substance such as increased corporate profit dividends for a given quarter or a corporate merger...  real events.

Now it only rises on hope which is akin to wishes, dreams, unicorns and cotton candy...
For "fun" we keyworded the term "rises on hopes" via Google News over the last 30 days.. Here is just a small sampling of headlines specific to the stock market in reverse order from more recent to past headlines:

Aug 6, 2012 -- 'Asian Stocks Rise On US Jobs Data And ECB Hopes' (International Business)

July 30, 2012 -- 'World stocks rise on continued hopes of ECB action' (Boston Herald)

July 26, 2012 -- 'Stocks rise on hopes that European Central Bank will ease debt crisis' (Toronto Star)

July 16, 2012 -- 'Asian Stock Markets Rise on Stimulus Hopes' (ABC News)

July 10, 2012 -- 'Futures rise on hopes for new euro zone fund' (Reuters)

Well??  Have those 'Hopes' been validated?  Are things better off now??
Let's go back a few more months..

Apr 12, 2012 -- 'US Stocks Rise Amid Hopes For Fed Accomodation,' (AP)

Mar 1, 2012 -- 'World stocks, euro rise on hopes for quick Greek aid' (AP)

Feb 17, 2012 -- 'World stocks rise on hopes for Greece, US economy' (BusinessWeek)

Jan 10, 2012 -- 'Markets rise on hopes for US growth, earnings' (Business Week)

Are you seeing a pattern here?

Like we wrote in the previous article on QE3, its just one cocktease after another... hope for a Euro plan.. hope that Greece's problems are solved... hope for more stimulus...

Endless bleeping 'Hope' propelling this artificial, manipulated stock market

The Only reason why we at A&G care is because so many people out there are so ill-informed of how to gauge the state of the US economy, that stock market is still looked upon as an accurate barometer.
Is this nonsense a phenomenon unique to 2012?  Let's see...

Dec 7, 2011 -- 'Markets rise on hopes for euro plan' (BusinessWeek)

Nov 10, 2011 -- 'Europe shares rise on hopes of political stability' (Reuters UK)

Oct 2, 2011 -- 'Asian stocks rise on hopes for EU debt fix' (BusinessWeek)

Sept 27, 2011 -- 'European shares rise on hopes of action plan' (Reuters UK)

June 11, 2011 -- 'US stocks rise on hopes of Greek debt fix' (MarketWatch)

Nope, the 'Hope' lie never ever ends..

These utterly evil, detestable people who make their living via the global markets need to generate profit daily... this doesn't come from a stable, sensible market.  If the parasites can not stimulate market movement via fear, then it must do so via 'hope'...
And all these months & years later..and countless cockteases that finally something positive will emerge from this political meeting or that central banker meeting and we're still here..stuck in economic quicksand..

And continually playing the 'Hope' card...