Two Years Into the Worst
Financial Crash in History
by John Hoefle
"In recent years, the Dow has become more of a
psychological manipulation tool than an economic index,
as old-economy companies were cast out and replaced by "New Economy" entertainment, information, and services firms.
Today's Dow includes such "industrial" titans as derivatives giants J.P. Morgan Chase and Citigroup; American Express; computer firms Microsoft, Intel, IBM, and HP; Walt Disney
Co., Wal-Mart, Home Depot, and McDonald's. Even the firms
which do have industrial components have large financial operations; General Electric, for example, makes about
half its profit from its financial operations, including a sizable derivatives business."
"Because it contains just 30 stocks, the Dow is also
relatively easy to manipulate, and the Plunge Protection
Team has intervened with increasing frequency when sharp declines threaten to escalate into major panics. Though
its actions are semi-secret, the Plunge Team's
interventions are easily spotted by the classic "V"
pattern in which the market plunges during the morning,
then suddenly rebounds sharply during the afternoon."
The world is catching on....... |
