"What really bothers me about this market, Tues., May 30, 2006, 3:26 PM
A couple weeks ago I wrote that this market was going to scare the wits out of you, and now you see what’s happening. But do you really see what I see?
I am somewhat reluctant to say this without proof. But I believe the Little People are in for much more shock and awe. In fact, even though the Dow is down -150 points as I write, I don’t think the worst of it has even started.
What I fear is happening at this point is that talking heads will be sent to CNBC to talk about a “goldilocks” economy – you know; the b.s. about “not too hot, not too cold”. Meanwhile what is really happening behind the scenes is what is called sector rotation. This is in reality a time where the Gnomes are repositioning their holdings to where they want to be when the market truly collapses.
At the point they want this market to crash, they will be heavily positioned in put options and shorts, and they will conspire as a group of so-called “capitalists” to pull the plug. As market prices cave in, there will be no margin calls or suicides for this group, unlike among the Little People.
And when they feel that the People are most scared, they will conspire to form a bull raid that will quickly end the bear market and start the next long cycle.
This conspiracy by a few to screw the majority has been going on for as long as stocks have been traded. It was only after the Securities Act of 1933, in the depths of the Great Depression, did the Gnomes and the Bankers get together with the Administration of the day to enact legislation that would ensure no more margin calls or suicides for the leaders of the money center banks, and their friends.
Well Houston, there is a problem. A week ago you had a local jury say to the Gnomes and the Bankers that it’s going to be much harder in future to do your dirty work. Now you are seeing that the People – with help from a few like Hon. Ron Paul – are onto your game, and spreading the word.
Confidence in the economy and in politicians is at extremely low levels. The People are fed up. They are going to seriously question just what another ‘Gold’man staffer is going to do for We The People.
Meanwhile, as the $USD sinks, there are traders in other countries who are taking advantage. Hasta la vista, baby. They are moving from stocks to gold.
And meanwhile, I am working on the Cara 100 reports so that I can have that part of the website ready in advance of The Big Day, when we all get going.
"http://www.billcara.com/archives/2006/05/what_really_bot.html#more |
