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Tuesday, August 18, 2015

Why do Dum-Dums Cheer when the Market Rises?

Do you ever wonder why the average dum-dum roots for the stock market to keep going up?

Of course a big reason would be because they buy into the corporate media nonsense that the best way to gauge the economic strength and vitality of the country is through a rising Dow.

Most are not educated or informed or have made the effort to be informed that the Dow (NASDAQ too) is like a broken thermometer saying your temp is 99.3 when its really 103; it is Not the accurate indicator to determine the health/well-being of the patient
Then there's the whole patriotism USA #1 nothing can ever defeat us mindset that we attach to US corporations and banks making profit.

You'd think everyone would look at these entities with revulsion..

If that was so, you wouldn't have at least 30% of the country declare themselves proud laissez-faire trickle-down 'greed is good' fiscal Conservatives

But a lot of the dum-dum factor among people stem from a combination of selfishness and naivety.

These are every day people with a few thousand dollars or so invested in specific stocks or sectors and if Corporate X and Bank Y have to make hundreds of millions in profit via Fed Reserve QE dumping so they personally see their stock portfolio valuation rise by a couple hundred, then 'cool beans!'

For instance, if an everyday dum-dum had $5,000 in stock in McDonalds back on Aug 23, 2010, he or she would have owned 67 shares valued at $73.99

So let's do a comparative..

Right now as of this writing, McDonalds is trading at $101.00, a 5yr increase of over 25% thanks to the Trillions which the Fed pumped into the market and other factors (who knows, maybe people in 2010 started actually Wanted to eat there)

67 shares x $101 = $6,767; A profit of $1,767 after 60 mths

6,700 shares x $101 = $676,700;   A profit of $176,700 after 60 mths

67,000 shares x $104 = $6,767,000;  A profit of $1,767,000 after 60 mths
So stupid Mr or Ms dum-dum with 67 measly shares was essentially hoping and praying the others would make their 6-7 figure profit so he/she could make enough after 5 years to buy some kitchen appliances.

And that really is how trickle-down economics work..  You can only make that $1 profit after others have made 10 to 100x the profit first and you're supposed to be happy for those above you; the wealth superior

It's also how a pyramid scheme works when you really think about it..

Person 'A' brings in 'B' to the pyramid who then brings in 'C'..   When 'B' makes sales, A & B profit; when 'C' makes sales, 'A' financially benefits as well.   When 'A' makes profit, B & C are left out.
It is also how the work world works isn't it..   If Company X isn't turning a profit and you are not earning your keep, you're tossed out like used toilet tissue but with less sentimentality.

And if it is making a profit, it means you get to keep your $35k job while your boss keeps his/her $50k job and his/her boss keeps their $100k salary, etc etc...

Personally if given the choice, I'd rather Lose $5k in the stock market if it meant banks and corps lost $500k to $500 million in the same bad investment

But hey.. That's just me..
So don't feel bad if you are one of those 'dum dums' actively rooting for the market to go up and heartless, soulless corporations to thrive.     You can't help it..  

The System got to us all at a very early age and for 12 grade cycles (or school years) wouldn't let go of their mind grasp.

To free the mind takes work..  'Blehh.. Phooey to that!'

And so you have a society of dum-dums that cheer when Warren Buffett makes another acquisition along with another billion and feel their stale in-a-rut lives are better when the Dow is 17,500 vs say 14k...

They say it takes a village to raise a child..   It also takes a village to dumb one down.