I don’t like to make predictions. Stock market predictions. And this isn’t one of them. First of all, I’m terrible at it. And with the Fed propping up the stock market none of the usual fundamental and technical analyses apply. We’re in unchartered territory.
The stock market is almost completely rigged at this point. Regular economic reports that give guidance to the health of the economy are so manipulated by the government today that any evidence of true prognosis of the nation is impossible. The government must hide the true condition of the economy from Americans for three reasons: politicians want to get reelected, the insiders on Wall Street are making billions on the rigged game, and the government is staving off riots.
The big one is riots. Social unrest. Do some poking around on the internet about the federal government loading up on billions of rounds of ammunition for civil defense. You will not believe which government agencies are buying ammo.
Who in the heck is buying stocks anyway? These days? At these prices. At all-time highs. After a non-stop 5-year rocket-ride from stock market lows in 2009. The Dow and S&P 500 indices are at all-time highs; is the economy at its all-time best? Who is buying up these stocks? Propping up the stock market. Who? Banks, and corporations, and stock market index companies, that’s who. With the full endorsement of the U.S. government.
Banks are buying up stocks. Corporations too. Corporations are buying back their own company stocks on the open stock market like crazy. Why would big companies be buying back their own stocks? To give the illusion their company’s stock is attractive. And because it boosts the stock-option benefits packages of company executives. The corporate buy back of stocks is also fueled by borrowing. Corporations are borrowing billions from banks at near-zero interest rates and using that money to buy back their own stocks.
Furthermore, index companies like Standard & Poor’s (i.e. S&P 500 Index) are buying up stocks by the billions. Why would they be doing that? They just track the performance of stocks, right? That’s not all they do. But to the point, Standard & Poor’s wants their index to “perform,” go higher, beat expectations, be in the news, increase, increase, increase. And what better way to do that than push up the prices of stocks you track in your index!
You just can’t believe how rigged the stock market is today. It’s always been rigged for the insiders, but at least in the past the little guy had a chance to get a piece of the action. Today, forget it. The market is so rigged even the insiders are getting squeamish.
And I suppose that’s why I’m writing this post. I think the Wall Street “insiders” are starting to get squeamish. Very squeamish lately. That gives me reason to pause. Not sure what’s causing the squeamishness. My first inclination is the Obama administration is giving Wall Street insiders mixed signals. The Obama administration is embroiled in several scandals now. Even the Leftist media is asking questions. And when that happens, people on the far left—like Obama—become exceedingly unpredictable. Wall Street and corporations are also starting to look to the 2014 and 2016 elections and how the outcomes will affect them.
The Fed? The Fed will do whatever it takes stay in power, and keep the power of paper currency. Paper money is the life-blood of the banking system.
Are we headed for a crash? I believe the crash began in 2008, and continues. What we have today are phony fixes and phony news about the economy. I doubt the stock market will crash in one big plummeting spiral in one day. We have a huge economy. We have enormous wealth. A very complex financial system. And plenty of corrupt people in power who are willing to lie, cheat, and steal to keep the truth hidden. The Titanic didn’t go down right away. It took nearly three hours. It took time for each compartment, each deck, to get overwhelmed.
But is the Dow about to crash? Tomorrow? Next week? I can only say what I’m feeling: it feels crashy right here at 16,717 pts.
It took generations of corruption to get where we’re at today. Cleaning out the stink of lies will take a while. Maybe an entire generation. We’re in the midst of one of the greatest economic collapses in history. It’s just unfolding so slowly from day to day that it’s hard to believe it’s really happening. But it is. And your grandchildren will ask you, “What was it like, grandpa?” And you’ll say, “For a long time I didn’t even know it was really happening. Until the cold ocean water hit my feet.”