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Wednesday, October 15, 2014

In Depth Analyzation of Distortions Within A Typical AP Finance Article

~ Old Woman:  "My Stars.. Such a noisy Rooster daring to wake me up on the state of the economy.. Be so kind Sir as to kill it so I may get back to sleep..."

Wednesday, the markets dropped another 173 pts to close at 16,141

Good..

As the urologist says to the old man with the enlarged prostate:   "Drips n' Dribbles are not where you want to be, but its better than nothing"

So.. -173 points -- OK we'll take it
We thought it would be "fun" and somewhat interesting to see how mainstream news covers the market so you can see how pro-finance, pro-corporation and distortedly pro-Dow biased they are..

And don't worry if you miss the non-subtleties.. We'll point it out

The following is an AP business article written early Wednesday evening about the market..  It will be in 'blue' font.   Any comment by us will be in regular black color...
A dizzying day for Wall Street as stocks plunge

"Fear drove Wall Street to one of its most dramatic, dizzying days in years on Wednesday.

Investors fled stocks and poured into bonds as worries about a global economic slowdown intensified."

Was it really 'fear' or cowardice?

The sentences create this visual picture of investors 'running' from some danger and safely hiding until all is well, like a badly written comic book..
What you really had were greedy, uber-wealthy 1% rot who will never ever allow their portfolios to take a loss, so they find profit-making deals in bonds..

Also notice the terminology.. 'global economic slowdown'..

That gives the impression that the global economy was at one time in the near past productive or thriving and only Now; only in this Present moment has there been rough seas,

This word choice is meant to negate the reality the entire globe is in a continual debt spiral and recession-depression
"The Dow Jones industrial average dropped 460 points in afternoon trading, all three U.S. stock indexes were in negative territory for the year, and the so-called fear index spiked.

A late recovery limited the damage and left stocks mostly lower. But investors were shaken after the heaviest day of trading in more than three years.

"I think it's fair to call it a global growth scare right now," said Bill Stone, chief investment strategist at PNC Asset Management."

More words to diminish reality..
Its all painted as merely a 'scare'..

Merely a temporary bleep-blop-bloop before things right itself and the unbridled profit making can continue

Of course we know what would have happened if the day ended at a -460 pt drop...   Yep.. a +500 pt spike the next day..

It still will ultimately happen.. Once the vultures see 'bargains' among the entrails they pick and pull upon, then the market will rise again, same as always..
"Investor concerns of a worldwide economic slowdown turned into outright fear after weeks of turbulence. Germany, Europe's biggest economy, is struggling. China's economy appears to be slowing. A batch of worrisome economic news in the U.S. also fueled the selling.

Traders sold riskier investments and moved money into U.S. government bonds, gold and cash."

Germany's has been economically struggling for years.. Its been strong compared to those dead bloated beached whales called Greece, Spain, Ireland, Portugal and Italy but struggling none the less..

Its like saying Donovan McNabb was a great NFL Quarterback because he's the Philadelphia Eagles all-time best and that empty declaration seems impressive on the surface..
Then study the team's history and you see decades upon decades of forgettable garbage with the occasional decent to mediocre QB to break the monotony of swill and then McNabb as well is seen for the trash he is..

Just 'better' and less pungent than the other refuse

And notice how traders never completely pulled out of the market..

If they were really scared about where things were headed, they would have all sold their shares and stayed liquid on the sidelines..

It more about giving the public perception of unique volatility than they believing it for themselves and investing accordingly..
After a bunch of technical mumbo jumbo, the AP writers decide to make all this Dow dropping a "positive"

"The U.S. market has not had a correction in more than 3 years. Historically a correction happens every 18 months...

Michael Binger, senior portfolio manager at Gradient Investments, said that investors may have started to step back into the market in the last hour of trading as the S&P 500 approached a drop of close to 10 percent from its record close of Sept. 18.

"The market has been waiting for this 5 to 10 percent correction for quite some time, and we got it," he said.

Many market watchers say occasional corrections are a healthy phenomenon over the long term and give investors an opportunity to add to their holdings at a lower cost.

"That's why it' so important to stay invested at a time like this, rather than think it's a time to get out," said Kate Warne, an investment strategist at Edward Jones."

Gawd..    Where to begin?

On September 18th, the Dow was at 17,265

As of the October 15th close, its at 16,141

So what's "healthy" to average Americans about a 1,124 pt drop in four weeks?
And let's say for argument sake on November 17th, the Dow is down other 500 pts or more for whatever the reason(s) and the people that held stocks today kept them another month vs selling..

What bullshit will Kate Warne of 'Edward Jones' chirp out then to encourage mom & pop investors to ride it out?

But you see its not about you or any little person..

The rats and roaches on the NYSE trading floor and in those nice offices in skyscrapers with lovely views don't make money when things are continually good..

There needs to be tumult..
~ "I was having such a nice dream.. That everything told to me by my government and what was written in the news and on TV was 100% true..  Meowwwrrrr"

Not so much that you pull your stocks and other investments completely but enough that you jump around..  Sell stock, buy commodities..  Sell commodities, buy bonds..  or more stock..

Buy.. Sell..  Buy.. Sell

They get their trading fees and selling commissions so they're covered; profit making at all times

Just keep your portfolio fluid..  A lil' of this.. A lil' of that..
"It's not the U.S. economy that investors are worried about, at least not yet. It's everyone else. Last week markets sold off sharply after the International Monetary Fund cut its economic forecast for the global economy, noting the weakness in Europe and in Asia.

The U.S. economy remains in recovery mode. U.S. employers are hiring at the strongest pace in 15 years. The economy expanded at a 4.6 percent annual rate in the April-June quarter and most economists forecast growth will be a healthy 3 percent this year and next."

Oh really?   Lying bastards..

If all is so rosy, what was 1Q GDP for 2014?

-2.6% after revisions..
And somehow we are to believe our economy went from -2.6% decline to a 4.6% growth, a 7.2% differential in 90 calendar days?!!

Also in September, the labor participation rate showed to be at 62.8% which was a decline of 0.1% from August, and according to CNN, the labor participation rate the previous August was 63.8%

How the Hell are employers hiring 'at the strongest pace in 15 years' if the rate showing people employed has Dropped by 1% in 13 months!!

Meanwhile forecasting firm IHS Global Insight predicts that real median household income — perhaps the best proxy for middle-class living standards — won’t reach the prior peak from 2007 until 2019.

2019!
~ 2019:  When the 1982 film 'Blade Runner' took place

And that's why we can't stop cursing and verbally spitting on these mainstream media finance and business writers who incessantly Lie and push 'recovery' upon the masses to such a degree Goebbels would be proud..

Ultimately each person believes as they wish..

Things are rosy & hunky-dory, or their not..

Live the 'Don't worry and be happy' life or 'Wake Up.. Cock-a-Doodle Doo..'

Entirely up to you..