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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: LTK007 who wrote (67083)8/2/2007 11:51:15 AM
From: Crimson Ghost  Read Replies (1) | Respond to of 116555
 
As markets rise and the value of financial asset soars it becomes harder and harder to keep stocks levitated.

Especially considering the huge debts owed to foreigners and the need to prevent a dollar collapse.

Much easier to support market at Dow 11,000 and foreign debts a few trillion lower than they are now than at Dow 14,000.



To: LTK007 who wrote (67083)8/2/2007 12:57:27 PM
From: benwood  Read Replies (2) | Respond to of 116555
 
While I know the PPT lurks out there, I think it's a forest/trees thing. If you watched that clip of Cramer the other month talking about all their pump and dump scams, and multiply his power over the market forces by a factor of 100 or so, you have GS. I believe that the gyrations we see are nearly all a product of powerful private forces sheltered (not run) by the gov't. With the leverage they enjoy and the schemes they employ, they can jerk the markets about anywhere over a short time scale. They have been honing the paint-the-tape game for twenty years now, and so between their computer simulations and on-the-job training, it's just a big video game where they shake the money out of those less informed or those less prepared to go "all in" at the critical time, either because they blink, or their pockets don't turn out to be deep enough to overcome the rogue wave tossed their way.

Eventually though, since they are artificially enhancing the market action, mostly up, and providing no service but instead draining away money from elsewhere, the game will collapse I think in a very surprising and awful way. However, as with a positive feedback loop in ultra slow motion, it could be ages before the screeching sound is heard and everybody covers their ears, unable to remain in denial because of the pain.

I think the actual number of people involved in making ramps like yesterdays happen is very small, 20 or 30 people perhaps, which is why it's so effective. It's highly organized and extremely focused. China's leadership is a good example of this sort of ruling elite.

Meanwhile, the entities involved have certainly infiltrated the gov't and so have paved the way through helpful legislation to make it all happen as desired. The rub is that the gains are short term and will continue to inflict damage on the real economy (same as our Everlasting War) and so the end game is a diminished standard of living for all but the Chosen Few.