No time for dilly-dallying, so we begin..
By now, we know the stock market is rigged; artificially inflated and manipulated by the Fed. And really this phenomenon has been occurring for the past 30 or so years, not merely post-Lehman..
The big difference between the 'now' and the 'then' is more about desperation taking priority over the need to be covert, and the increase in information out there in the Internet stratosphere allowing normal everyday people to be informed (if they wish to really know) of the big con.
Why for over thirty years is so much importance placed upon the stock market by the Fed that it even needs to bother its chicanery in the first place?
Yes, we know the Fed was secretly created in 1908 by bankers to benefit bankers' interests... And we know bankers bribed every politician they could for five years including a Presidential candidate named Woodrow Wilson to pass it.. which he signed into law in 1913...
The wealthy and well to do.. the banker, corporate CEO and Professional 'I' Investor certainly has no moral quandary whether or not to squeak and squeal and Sooie! in the mud...
But we must go beyond that and re-ask...
Why is the stock market such a priority that government is happily willing to ignore the plight and suffering of most of the nation for the benefit of a particular segment of it?
This mindset works in simple terms like this..
Government will do the absolute Minimum it must do while giving the appearance it is doing the Maximum. It is a magic trick... a slight of hand... a Con game.
A successful Con is all about Confidence.
Bernanke's predecessor- the deeply ugly (inside and out) despicable worm Alan Greenspan argued that intentionally manipulating stocks so they increase in value would work and bring about recoveries from recessions because:
"The stock market is the really key player in the game of economic growth... The data shows that stock prices are not only a leading indicator of economic activity, they are a major cause of it. The statistics indicate that 6 percent of the change in GDP results from changes in market value of stocks... "
In simple terms, con or fool the populace into believing the economy is recovering strongly based on a growing Dow and you will dupe enough people to spend their precious money or borrow to acquire impractical things they truly don't need...
This level of thoughtless spending will circulate through into the economy, increase corporate profits which will 'hopefully' cause them to expand hiring and the economy will grow to where what was once the carefully orchestrated illusion, now becomes the 'reality'...
Of course when corporations are making so much profit off market manipulation and using temp & part time workers to do jobs once held by full-timers with benefits, you're not going to get recovery no matter if Dow is at 25,000
Former Fed Chair Paul Volcker back in the early 1980s is the first one to really employ this strategy and it worked like a charm. Of course times were different then.. We had a manufacturing base.
Not only did interest rates drop dramatically within a span of 6-9 months around 1981-82, but thanks to a strategy of never-ending catering to the stock market under Reagan the Dow grew from around 1024 when he took office in '81 to around 2200 by '89.
February 24, 1983
And the market hasn't stopped being manipulated since..
The US Congress along with the US President since 2008 has done Absolutely Nothing to improve the US economy and by extension the lives of tens of millions of people who have suffered in some way from this recession-depression..
Did it in a closed door vote on Dec 31, 2008... evening hours.. This ensured few to none truly understood this great power shift for this and future economic crises..