It's nice to have a dream, but here are the facts:
The NYSE has been around for 200 years. They know what they are doing. They are total pros. They have to be, they play with tens of trillions of dollars every day.
The big brokerage firms, like JP Morgan, Morgan Stanley, etc. have been experts at buying and selling at "what the market will bear" since before any of us were born. Why do you think the laws were changed in 1934? These firms are just firms. The people in the firms are the ones that make the moves. These people are experts at "guiding the stock market". Some of these people are corrupt. It is easy to be corrupt if you are inclined to corruption. It is hard to be corrupt if you are not. There has always been corruption in business. Some people are corrupt, and some are not. It has no identifiable relationship with the criminal's party affiliation. In 1997 the stock market in the United States began a run that was not related to actual valuations of publicly traded companies. It was not logical. One conclusion that could be drawn is that some corrupt people drove the markets up. In 2000, there was a top in the stock markets. At that time, the valuations were totally insane, and had been for more than two years. If one wishes to point a finger at some indication that corruption or illegal activity was being displayed, then one can easily see when it started and when it topped out in this current cycle. Cisco was worth 7 bucks two years ago. Nothing much has changed except the price of the stock.
All intelligent long-term investors know that the valuations of the stock market do not have a direct correlation with the economy of a particular government. One or the other does not lead or lag. This is a stone cold fact, if you dispute it, you are unfortunately incorrect. The stock market is now approaching more sensible valuations. It will decline more. One conclusion that could be drawn is that the corrupt individuals made their money and are now either standing aside or are short the markets. The decline has as much to do with Bush as the bubble had to do with Clinton. If you want to blame the decline on the current administration, then you'll have to blame the bubble on Clinton.
Logical and sane investors can see these things for what they are, which is truth. Sheeple do not. If you lost money, it's your own fault. |
