Benwood...here are some thoughts along those lines that I found on another board...
I wonder if Main Street will organize and go after Wall Street, the
banking industry and the negligent/complicit regulators in D.C? They
have marketed the concepts of long term investing, buy and hold,
dollar cost averaging and all their other garbage so thoroughly that
most Americans believe these strategies must be followed in order to
be able to retire or put your kids through college. They rarely if
ever told us that deflation is always a possibility and the
investment strategies to employ during a deflationary period are very
different than those employed during an inflationary cycle. They
showed us long term charts that did not factor in inflation or
reindexing and strongly implied long term investing is a can't lose
proposition. They worked with government economic statisticians to
figure out clever ways to lie about economic statistics, including
grossly understating inflation. They committed all kinds of
unethical acts to enrich their pockets while bilking an unsuspecting
public.
Now we get the bombshell...it all was based on ponzi financing and
the use of massive leverage. There was gross inadequate disclosure
that the Investment Banks, Hedge Funds and other investment
institutions were employing leverage of 20, 30, 50 even 100 to 1.
The average American investor had no idea that investment prices were
extremely distorted due to this leverage. Investment prices detached
from all reality and the public had no clue. They believed Google
was worth nearly $750 a share 10 months ago, not realizing that
without the massive ponzi leverage, Google's share price would
probably have never cleared $100 a share. I know that sounds
ridiculous but the point is, due to the leverage employed there is no
way to determine what a Google is truly worth.
Without the ponzi leverage, where would the Dow be? The Nasdaq?
There is no way to know....but undoubtedly the stock indexes are way
overvalued because so much of their appreciation was based on
leveraged buying, leveraged buying that cannot even be close to
unwound yet.
Hard working citizens saved their money, and invested it in a corrupt
cesspool called Wall Street. Many of them just invested their
cash...they used little if any leverage/margin. Now these citizens
are seeing their lifetime savings vanish before their eyes as the
massively leveraged institutions are forced to sell good companies
recklessly in response to the biggest margin call we have ever seen.
Every day more and more Americans are starting to realize that they
have been scammed by a corrupt industry and government. If the
situation continues to deteriorate, it is probably only a matter of
time until a revolution commences. The Bankers, Wall Street
institutions and the regulatory divisions of our government are
living on borrowed time. No wonder they are flying around in a panic
trying to save the fiat system. Sadly, the situation is explosive
and much unrest may be ahead. It didn't have to be this way but
greed grabs mankinds' soul and distorts his view of right and wrong. |
