The big news yesterday in markets even though we guess it shouldn't be 'news' is the Federal Reserve once again demonstrated themselves to being bleeping Liars who will say and do anything and rescind any previous verbal commitment for the benefit of the market and investors' profitability.
Over a year ago the previous Fed Chair Bernanke stated that once unemployment drops to a threshold of 6.5%, the Fed will release the reins and let interest rates go up a little bit..
But its hard to control bogus numbers as flimsy as paper in the wind, and now we're at so-called 'official' unemployment of 6.6%
So the new Fed Chair Yellen and her cackle of the soulless rescinded their promise and it will be very low interest rates for some time to come..
Remember the Fed is a bank created and owned by banks for the sole benefit of banks while it plays upon a ruse of being 'Federal' while under the guise of pretending its policies are meant to benefit the greater populace
We shouldn't get upset but it just goes on and on..
And like we presented yesterday, within a span of 13 years (2001-2014), the National Debt has grown by almost 3x and yet the Fed has successfully pushed interest rates down by near 75% from over 6% the government paid on debts to around 1.5%
Doesn't matter how many everyday people suffer from near zero interest savings, the fact is if we had to pay over 6% interest on over $14 Trillion in debt, the game would be up as they say.. And it'd be a mess...
So five and a half years of constant meddling and manipulation with no entity to check/balance the Fed nor the power or will to put them down like one would a rabid mouth-foaming dog with eyes locked upon an unsuspecting child..
Speaking of markets, we perused a good article in WSJ's 'MarketWatch' today about the corruption of Wall Street and its basic mechanisms for survival..
No moral conscience necessary. Adam Smith’s “Theory of Moral Sentiments” is lost. Wall Street’s “accelerating returns” simply mean more profits for bank insiders and shareholders. Never for America’s 95 million retail investors. Never the public interest.
Get it? Wall Street does not want rational, informed investors. Never. So traders, brokers, advisers, gurus use tricks to obfuscate, put up obstacles, keep investors making irrational and informed decisions"
So we have a responsibility to keep plugging away and providing information that may be obvious to some but not-so to others..
We finish up today's posting with an informative list from the same MarketWatch article previously mentioned..
1. Hire psychologists, neuroscientists to manipulate the media
Use consulting contracts, grants and retainers and lock up the best talent to work to keep America’s 95 million individual investors irrational and uninformed
2. Free experts constantly deliver Wall Street’s message to media
Network, cable, bloggers must fill their channels every day. Talking heads are free advertising for Wall Street to manipulate investors using so-called news content.
Lobbying is one of Wall Street’s best investments. Lobbyists control Washington: control politicians, fight reforms, push favorable laws, regulations, spin the truth to mislead investors.
4. Fuel anxiety by pushing the investor’s buy/sell/ trade button
Wall Street’s a casino, makes money on “the action,” skimming a percentage off the top. They fuel investor anxieties, fears, optimism, volatility, maximize action on exchanges.
5. Kill our savings button, undercut self-confidence, long-term planning
Wall Street uses neuroscience technology to sow doubts about retirement security, do-it-yourself investing, how indexing beats trading, then overloads us with misleading ads.
6. High-frequency trading, misleading Wall Street and Main Street
Short-term online trading makes Wall Street billions annually. Hyperactive traders have a competitive edge using high-tech neuroscientific strategies, plus keep markets churning.
7. Brokers trained on aggressive selling and closing techniques
Securities are sold not bought: Broker’s advice is self-serving, often misleading, anything to get a commission. They’re trained to use high-powered psychological techniques.
8. ‘Investor education’ programs are self-serving sales gimmicks
Most Wall Street-sponsored “investor education” programs are loaded with new business, sales and promotional gimmicks. But they help Wall Street present a “we care” persona.
9. New ‘designer’ funds based on latest fads to replace losers
Fund companies constantly design new funds based on the latest fads, for anxious investors chasing higher returns, driven like teenagers who need the latest video games.
10. Retirement gatekeepers: kept in the dark and manipulated
Two-thirds of all funds are controlled by corporate pension and retirement managers. So Wall Street focuses sales pitches on easy to manipulate naïve plan managers.
It went back on its word to raise interest rates at 6.5% unemployment because it knows the figure is meaningless and because it would hurt this filthy Investor & banking rabble in the pockets and piggy banks..
And the Fed was simply not chartered in 1913 to do that