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Friday, February 21, 2014

The Lying Fed Strikes Again & 10 Ways Wall St Profits Off the Populace

Well its Friday.. end of the week and all that hullabaloo..

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..
Of course the lying liars pretend they care about lower employment but really don't and honestly never in their wildest dreams expected the drop to 6.5% to occur within a year..    They thought they did an interest rate can-kicking to last a few years at least..

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So the new Fed Chair Yellen and her cackle of the soulless rescinded their promise and it will be very low interest rates for some time to come..
Low interest rates for banks to borrow among each other..   Not for you.. Your credit cards will still be 15-25% and your mortgage rates will still continue to climb

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..
It mentioned that for it to survive and grow, "Wall Street needs investors who are irrational, woefully uninformed ... willing to hold overpriced assets.

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"
Maybe to some readers its pretty obvious and we at A&G are just being repetitive but we never assume who our readership is..  Some may know Wall Street for the pit of filth it is but others are still doe-eyed and attach patriotism to its inflated numbers..

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..
Here are 10 of Wall Street’s high-tech/low-tech weapons used to control and manipulate people into investing into this cesspool of a stock market:

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.
3. Invest megabucks on lobbyists to control politicians, government

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.
And this is who the Federal Reserve caters to...

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