<<Why the Market Hasn't Crashed Yet
(this was posted by gloe on iHub, i don't know where he got it-max)
(posted on a private board)
The Fed's job one is to make bankers rich and periodically save them from going out of business and replentish their capital stock by increasing their earning. When the banks get into trouble the Fed lowers short term rates which cuts the banks borrowing costs, increasing their spreads, profits and balance sheets. Well that is the way it has been designed to work in the past and that is what they are toiling to accomplish as we speak.
Now that the banks and brokers have merged, (not a good idea, BTW) the FED's (and the sock puppet's evil empire's job one) recently expanded first priority is to make sure the game is fixed in their client's favor which now means keeping equity prices up in addition to increasing lending spreads.
The MSM financial press and industry insiders are provided scripts to justify the markets reality defying pumped performances. The latest one being sold, if you are paying attention to CNBC is something along the lines that US stock market has somehow magically morphed itself into having the same properties as a hard commodity, and therefore justifying the stock market's rising in the face of a collapsing dollar and a cratering economy.
The concept that government policies are driven with the even the slightest attention to what is best for the greater good of the economy and country is no longer even considered because they know that the general public is, in the main, too stupid(edit: i would prefer words like uneducated regards markets, gullible regards markets, naive regards markets, and thus perfect patsies to the criminally greedy WS that want all the money for themselves and their rich clients-max) to realize they are getting hosed in favor of the elite monied interests that have bought control of our democracy.
The market will only go down hard when things become so bad that some of the major players on the inside realize that the opportunity costs of staying in the "pump game" have become too uncertain and some of them secretly abandon the "pump game" and covertly begin shorting and selling the market in size to position themselves for the eventual brake.
I don't think we are that far from that point at which some of the greedier pigmen realize that the short side appears to be just too juicy to risk missing some carreer sized opportunities by over staying the pump game no matter how well it has worked for them in the last five years.
Then the market will really puke, the Fed and the Treasury will realize they have lost control and the investing public will be awakened by a loud sucking sound from wall street as the value of their IRA's and 401k's collapse and to what has been screamingly obvious, if you dared to look, that not even god has enough liquidity to stop this train wreck.
I think the only reason we haven't had a headline grabbing counter-party failure that would also ignite this coming fire storm is the word is out to the hedge funds and banks that they can mark their trillions of derivative waste anywhere they want while those at the Fed keep smiling and claiming they are on the case, all the while praying for a miracle that they apparently think will arrive from the dessert, wearing robes, carrying sacks of freshly depreciated dollars, dispatched to them by our hard working citizens and newly smelling of camel.
Oh, the irony of it. The sock puppet is reduced to trying to save the Republic by passing the hat to the sand jockeys or the chicoms.>>
i Highlight:"...that not even god has enough liquidity to stop this train wreck."
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