Wednesday, March 18, 2009

Banner Day for Wall Street Crooks

One would think that with the Fed having lowered interest rates to ZERO and keeping them there, that today's Federal Open Market Committee rate policy meeting would be pretty much a non-event, and you would be right.

The committee released a terse three paragraph statement today, did not raise rates, reiterated that the economy was in the dumper and then quietly mentioned that the Federal Reserve would purchase "up to $300 billion of longer-term Treasury securities over the next six months."

Wall Street was wowed! The Dow shot up 150 points in the ten minutes after the statement was released. And why not? The Fed already has the power to create money out of thin air, so why not help out the bankrupt US Treasury (currently $11.5 Trillion in debt and growing) by buying up their bonds with their worthless paper (or, in this case, worthless electrons on a computer spreadsheet somewhere in the bowels of the Federal Reserve bank).

Glorioski! These people are out of their minds! After the worst financial meltdown in global history, the Fed and he government intend to fix it by going further and further and further into debt. This is going to bankrupt the entire nation, which, of course, is already bankrupt. Well, I guess they'll just make it worse and have it happen sooner this way. Now, not only is your 401K taking a huge hit, but the money it is denominated in (US $$) will be worth less because they are flooding the system with cash. Hallelujah! The double whammy!

The committee also said that the Fed and Treasury will soon be doling out another $2 Trillion of risk-free securities to their favorite deadbeat bankers, Goldman Sachs, Morgan Stanley, Bank of America, et. al. - the usual crowd of corrupt failures. The government is guaranteeing these securities against default with taxpayer money. Now, not only does the US populace own 85% of AIG, but they now ARE AIG. Mike Whitney's article, Bernanke's Witness Protection Program, puts the TALF scam in perfect perspective.

Remember, the Fed is a private bank. (For more on why this is of vital importance read James Quinn's Grand Illusion - The Federal Reserve)They will be selling these new collateralized debt obligations (CDOs) to their members. This, in the parlance of old-school honest-to-goodness economics, is known as self-dealing. All of this $2 Trillion of ADDITIONAL stimulus will accomplish nothing except to put the entire financial system of government and ├╝ber-banks at further risk.

And, to make matters even better - for the inside traders, no doubt - the rally was extended another day. The Dow is up more than 900 points since last Monday. Will the madness ever end? Probably tomorrow or Friday, as soon as the cheats clean up on their options bets, which expire on Friday. The really smart money is already out. The rest will be pulled tomorrow.

Dow 7,486.58, +90.88 (1.23%)
NASDAQ 1,491.22, +29.11 (1.99%)
S&P 500 794.34, +16.22 (2.08%)
NYSE Composite 4,975.33, +107.19 (2.20%)

So, with stocks soaring, the internals showed just how unbalanced the trading was (remember, stocks were down until the Fed announcement). Advancers led decliners, 4883-1639. New lows continued to lead over new highs, but the margin is shrinking, at 116-24 on the day.

Volume was absolutely off the charts, probably the heaviest trading day of 2009. This indicates the massive nature of the fraudulent bear rally. With options expiring Friday, the money was moving with great velocity today as insiders scrambled in and out of positions in the final hour and 45 minutes.

NYSE Volume 2,077,359,000
NASDAQ Volume 2,813,044,000

There was a little island of sanity in the commodities trading pits. Oil lost $1.12, to $48.14 and has further to fall. Gold sold off in a very dramatic way, losing $27.70, to $889.10. Silver was hammered lower, losing 74 cents, to $11.94, a super buying opportunity.

There is no way the American financial system will survive more than another year of the fraud, corruption, self-dealing, inflationary money-pumping we have seen since last September. The genie is out of the bottle and it will not be put back in. Gold and silver are being held down by central bank cartels, but sooner or later, that game will end, and, as so many respected authorities on the topic of economics have said, the US dollar will be trashed, inflation will reign and gold and silver will double or triple in value. That day may be a year, two years away, though it could occur within six months or six days. Nobody knows the future, but the only way to protect yourself is to own gold and your own home.

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