DOW Tumbles 400 Points
It's a bad Tuesday for folks that gamble money at the stock exchanges.
Is it a trend or can Goldman Sachs and other PPT Players inject $billions in newly minted and borrowed money, into the system in order to shore it back up?
Its hard to imagine that it was allowed to slip so much. If the slip was intentional, then was it a sell off by folks in the know?
The market remains levitated far beyond what the fundamentals would price it at. Only the rapid flow of cash borrowed from our future has been able to keep it propped up so high, for so long. The recovery that has had news anchors smiling for the last few years has been abysmal. When compared to the rise in oil prices over the same period, it looks pretty shitty. I guess for economists that are used to eating dog crap, whipped dog crap must be an improvement.
Now the froth from the housing markets has gone flat. The money is draining out of accounts, banks are desperately looking for ways to hide crappy accounting and losses from lax lending. Everyone is looking to hand off their buckets of frothy dog turds to someone else. But no one is buying. Everyone has their own collection of frothy dog turds to get rid of.
So in this dramatic sell off, where is the money going? Its probably covering losses. Its inflationary money chasing after debt servicing. If so, then those frothy dogs turds are going to be flushed. Too bad the sewer lines are backed up. That deflationary spiral is going to be a bitch.
Will the Federal Reserve be able to create money fast enough to slow the free fall? Stay tuned, its a show you don't want to miss.
2 Comments:
The question is, is this a real correction, or the PPT covering their tracks? We shall see. It sure was boring, watching the indexes move in a straight line for six months, that's for sure. (Spell check rulz!)
This is why Rickey puts all his money into Soy futures. Soy!
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