Thursday, August 27, 2015
Like little brown monkey climbing tree..
Up.. Up.. then Down..Down..Down...
Then little brown monkey go Up Up.. then go Down Down some more
At least little brown monkeys have valid reasons...
The media will say that China did this or the Fed said no rate hike, and the greedy swine were calmed into a believe this 'correction' was all over..
Of course no one talks about an apparatus that is secretly and quietly in place around the world called 'Plunge Protection Teams' (PPT)
It works like this (sorry if some of the information is a bit technical - just follow the gist):
1) Since the majority of trading is now done by software programs (trading bots, algorithms, etc.), the first step is to create positive momentum so the bots will detect an "up day" and buy, buy, buy.
The easiest way to generate positive momentum is to buy a truck load of S&P 500 futures in a time of low volume, where the impact will be the greatest. usually this is pre-market open.
This is why you usually see a big opening spike the day after the Dow drops by a large number - a means to restore confidence
Announcing the central banks' readiness to do more of what has goosed markets higher for six years will generally spark a buying frenzy, as those who have bet against central banks over the past six years have had their heads handed to them on a platter as well as experienced their share of ulcers.
3) If this fails, grandiose but purposely vague claims of "doing whatever it takes" are issued. There is no need to actually have a plan, or to lay out a plan in public; the open-ended announcement is generally enough to reverse a trap-door decline.
People want to hear 'hope' and pledges that things will quickly improve even though its bullshit.
The Plunge Protection Team (PPT) must start buying equities. This is usually done by private proxies via dark pools or offshore accounts or by state agencies--investment funds, retirement funds, etc.
And when things get very serious, the central bank can buy assets directly, and in such massive quantities that the markets are forced to respond appropriately.
5) If this fails, the last resort is a coordinated buying campaign by all the central banks, acting in concert. This last stand has a rallying cry: Plunge Protection Teams of the World, Unite!
Of course the PPTs of the world monitor key technical support levels, but what the PPTs are Really monitoring is the dangerous sentiments of fear and panic because when the trap-door opens and the herd turns to selling, the entire six-year prop-job will crumble.
Here's a couple examples of how the financial media works in collusion with the Fed to calm and soothe jittery investors who are in panic sell mode..
The following headline appeared in the business section of the NY Times this past Saturday August 22, the day after the market suffered 3 consecutive multi-hundred point drops:
"Advice After Stock Market Drop: Take Some Deep Breaths, and Don’t Do a Thing"
At one point sarcastically or sincerely, the writer expresses, "So pour yourself a drink, or sit down with a pint of ice cream and consider the following..."
A second article in Saturday's NY Times started with the intellectually insulting headline, "This Week’s Market Sell-Off May Not Be Such a Bad Thing" then refers to the massive drop as a mere correction while expressing "its about time" and "a much needed breather"
Ah yes.. there's nothing a mom & pop investor wants more as his/her investments are rising is to have a nice refreshing little 'breather' where it goes down by 20% in about 1 week
"In the meantime, the best response for most investors trying to grapple with the latest bout of volatility is to take a deep breath, appreciate the remarkable run-up of the last five years, and remember that if you panic at the thought of losing 6 percent of your money in a week, that money really shouldn’t be invested in the stock market to begin with."
Sorry to be so profane but NYTimes: Fuck you!
And we are sure there really are some gullible morons out there who did take some deep breaths, had a couple spoonfuls of Cookies n' Creme and now believe everything is OK based on yesterday and what the market is doing this moment..
Gawd, we are just so tired of the Idiots! More so than the liars because at least we understand the 'Why' of it all...
China is a liar nation having created a giant lying debt bubble for years. Much if not most of its growth ‘miracle’ was nothing but a huge credit expansion, with an outsize role for the shadow banking system.
Much of this has remained under-reported in western media, probably because its reporters were afraid, for one reason or another, to shatter the global illusion that the western financial fiasco could be saved from utter mayhem by a country producing largely trinkets.
Remember all media has selfish agendas..
For instance, ours at A&G wake people the hell up to the economic reality of a nation they blindly trust as having their best interests in mind and a System that wants nothing more to control and stomp out your inner-individuality (For instance, covering your body with tattoos doesn't make you an 'individual'; it simply screams out you have inner-issues needing addressing)
Now people look and go 'Wow' then move on but there's a scary proposition going on behind the scenes
There are people in places of economic/financial power in this country that think, yes US debt stands at $16T and that's bad However...
The concept being "We all know this will never get paid back And see China over there with its $27T in debt and no creditor is calling in their money.. So what's to prevent US from ultimately expanding our debt load to $27T as well?"
There's a lot of deeply evil, soulless sociopaths who make their living via the Stock Market
And even more deeply evil, sociopathic diabolical creatures from the black lagoon who run the show from behind the scenes.
And ultimately we expect to get our way on this.
Today the little brown monkey is back climbing up the tree...
We expect in due time that little brown monkey to take a bad fall.
Posted by Susquehanna at Thursday, August 27, 2015