Monday, June 14, 2010


OK, so what was the excuse for today's failed rally? Technical? Fundamentals? Fear? Greed?

Whatever was the case, functional real markets do not act in this manner. Rigged, useless, casino-style markets in heavy secular bull trends do.

The stock market used to be a place where an INVESTOR could safely place his or her money and expect a reasonable return. Nowadays, it's just crap shoot. The dotcom bubble proved that. If you needed more proof, how about the 52-month bull market during the Bush administration's failed war in Iraq? Or maybe you'd be more convinced by the absurdity of the 2008 crash, complete with bank bailouts and exorbitant executive pay while average Americans' wages stalled or declined and corporate America shed six million jobs.

If you haven't been convinced that these markets are for professional gamblers only, and not for individuals or pension funds, maybe the sharp rally off the March '09 lows brought you some measure of faith.


Toady's market was a perfect example of a trader's market, a casino, though the odds are stacked more favorably toward big players and insiders, so an unfair casino, a controlled crap game with loaded dice and blackjack tables with magic drawers which produce mystery cards for the dealers.

Anybody with a red cent invested in the stock market is simply throwing away their money. You may think you have an edge at some point. You will have profitable trades, but you cannot buy stock in a company based on fundamentals and hold it, collect dividend checks and still make a gain. Not in this market. Stocks with strong dividends are temporary. Their dividend yields improve as the price of shares decline, eroding your capital. It's a sucker's market, but the insiders are running out of suckers. Soon they will be eating off each other's own flesh.

Why was the Dow up 116 points early in the day? The talking heads on CNBC tell you that it was because fund managers buy on Monday. Well, if that's the case, they just had their asses handed to them, because whatever they bought early in the day is now lower in value because the insiders sold them off. Yes, since there are fewer suckers on which to feed, and since the bankers have had their way with taxpayer money via the government and need more, they are actively going after pension fund holdings through organized short selling and other tactics at which they are expert.

So, now you know why the market went up, and also why it went down.

Therefore, if you are a person with a pension fund which you think is going to provide for you during your "retirement" years, the crooks on Wall Street just took a little of that away today. Tomorrow, they will take a little more, and when the market crashes for good, later this year or early next year, or maybe in 2012 or 2013, you'll be told that your pension fund has no money and your retirement is going to SUCK OUT LOUD. You'll probably have to keep working until you're 80.

Deal with it. This is the new reality caused by decades of Americans trusting politicians and bankers with their life savings. They will steal all of it and leave you with nothing. The best advice I can offer - which I offered first in 2007 - is, if you have a 401k or other personal retirement account, to take it all out in cash, pay whatever penalty they're going to throw on you and put it in gold, silver. arable land, or tools of trade. Otherwise, like the government employees who are being led down a primrose path to absolute desolation, you will end up with nothing.

Dow 10,190.89, -20.18 (0.20%)
NASDAQ 2,243.96, +0.36 (0.02%)
S&P 500 1,089.63, -1.97 (0.18%)
NYSE Composite 6,817.97, +3.21 (0.05%)

Naturally, there were more advancing stocks than decliners and more new highs than new lows. That's how the ultimate financial con works. The volume was so absurdly low as to be laughable, but that's also how these expert crooks operate. They don't steal all of your money all at once. That would be too obvious. They take a little at a time. Some day's they even give you some of it back, so you'll stay in the game. That way, they get to take all of it, little by little, day by day, stock by stock.

NYSE Volume 5,173,854,000.00
NASDAQ Volume 1,902,072,875.00

Commodities were just as absurdly priced as stocks. Oil was up $1.34, to $75.12, but gold was down $5.60, to $1,223.30 and silver was ahead by 18 cents, to $18.40. Why? simple. The oil futures market is the most controlled, contrived, manipulated market ever invented, thinly traded and controlled by six or seven major interest groups. Gold is constantly being hammered down by Wall Street banks, particularly the House of Morgan criminal enterprise, and silver, well, who the hell knows? Id' say silver is probably one of the safest investments on the planet, especially if you're buying old US coins at melt value, though even that can prove risky. At least the coins will be worth something, like gold, forever, but without the constant interference from unscrupulous traders, central banks and the IMF.

I've been following stocks and studying economics for many years, and I can safely say that I've never seen stock markets so blatantly manipulated as I am seeing right now. Most stocks, even if they aren't already wickedly overvalued - which means nothing - are eventually only profit vehicles for Wall Street insiders. They'll crush a good stock for short term gain just as easily as they'll boost worthless shares. It's all about making a profit on a trade, not investing, these days.

I also heard today that the federal government wanted BP to open an escrow account to pay for the cleanup and associated costs in the Gulf of Mexico. I won't even bother to link to any story, but the number being throw around was $1 billion, which is so agonizingly low as to be considered off the table. Louisiana governor Booby Jindal (more than likely a phony name) said that any such fund should start at $5 billion.

Both figures are completely wrong. The costs of cleaning up the Gulf and paying the wages of the hundreds of thousands of people and businesses who have suffered economic hardship are going to top $100 billion, easily. BP - that's BRITISH PETROLEUM - should be out of business within six months, but it seems that our federal government is going to do everything within its power to save the company and screw over the taxpayers, AGAIN.

How much more will Americans take before they have had enough?

Sadly, more than anyone wishes to believe. The Americans of today are going to watch the utter destruction of the best democracy that ever existed on the planet, and, for the majority of them, they won't even raise an arm in anger.

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