Thursday, January 21, 2016
On December 31, 2015, the Dow closed at 17,603
As of the closing bell on January 20th, the Dow stood at 15,766
A drop of 1837 points in 12 market trading days (The market was closed both on New Year's Day to celebrate the birthday of refreshing cold Milk.. um.. we mean MLK)
You know if you added 24 points, you'd have yourself a really good year (1861).. Just a little Civil War jokey there..
Some 'experts' blame the extremely low oil prices..
Ha! Yes, let's all pay double at the pump so those with large portfolios in energy can see them grow
Others blame the Fed finally raising interest rates after keeping them artificially low for 7+ years..
Double Ha! As if a quarter percentage point means much..
And others wish to put the blame on China's economy mess..
Triple Ha! As if no one in the 'know' knew for months if not years that China has been running a shadow economy and artificially manipulating both its GDP projections and its currency
But let's pretend it was.. How is it investors get so 'jittery' over GDP of +6.8% from China and yet so jubilant over the US growing at a snail's pace of +2.0%?
The reason the market is dropping is because of the cliche of chickens coming home to roost..
No government, even the US can keep spending endless amounts of money to prop up a stock market that since 2009, does not represent the real US economy
They Never EVER spent a moment to take the time and look at the kind of people buying those lottery tickets.. those on welfare, those between jobs, those who are seniors barely getting by, everyday families struggling to make it as things currently are..
You know.. the Poor & Disenfranchised.
Then add the end of $1.3 Trillion in annual liquidity injections by the Fed which had occurred over a 5-6 year period (In other words, $7 in increased US debt went to pump up the stock market during the Obama years)...
And the panic of deeply greedy, parasitic people in expensive suits and dresses who make their living by investing...
And well, this is what you get.. A nice continual drop.
The Dow would be in the 9,200 to 9,700 range.
But 17,000+ and beyond seemed soooo much better..
And everyone was conditioned to root for it to keep going higher even though so few of us are actually invested in it to any meaningful extent (Sorry Charlie but owning 150 shares in Apple stock does not make you a "playa" in this game)
And drop n' fall and then drop n' fall some more
Of course its manipulated so much by those in power, it will take much for what needs to happen to actually well.. Happen
We explain it this way:
But every time you get that warning pain, you just pop in an aspirin, wait 10min then keep on chuggin' along..
The aspirin doesn't fix anything.. Only delays the inevitable and meanwhile the blockage or decay gets worse and worse and a double bypass turns into a triple or a quadruple...
Do we really need to connect the dots of our medical/economic analogy?
W Bush probably thanked God on a million times the crash occurred when he only had four months left in office.. Then he got to spend the next 7 years sitting at home watching baseball
Obama has only been interested in keeping plates spinning just long enough that whoever wins in 2016 deals with the big Crash while his precious 'legacy' of being a crap President is protected
And whoever wins.. Dem or Rep..
Do they Really understand what he or she is getting themselves into?
Posted by Susquehanna at Thursday, January 21, 2016