Wednesday, August 11, 2010

Stock Market Lower For The Year

Down 265 for the Dow after the Fed signaled economy is up shit creek yesterday.

Here's how Reuters puts it:

(Reuters) - Stocks erased the year's gains in the broadest selloff in a month-and-a-half on Wednesday as fears of sustained global economic stagnation caused investors to flee to safer assets.

All three major indexes posted their worst percentage drop since July 16 following the Federal Reserve's bleaker assessment of the economy on Tuesday. The U.S. central bank said it would take steps to hold down borrowing costs. However, some traders questioned how effective these measures would be.

"Adding liquidity to the system by saying they would buy Treasuries isn't helping the average man on the street," said Robert Pavlik, chief market strategist at Banyan Partners LLC in New York. "This isn't going to be creating jobs or helping the housing market."

Indeed, as I wrote yesterday, printing money and handing to the banksters for free will NOT put people to work or fix the housing market or help middle and working class people.

But silly Reuters writer, you're assuming the Federal Reserve and the Obama administration actually CARE about putting people to work.

They do not.

They care that Whitney Tilson and his hedge fund criminal friends continue to make money.

They care that Goldman Sachs and JP Morgan continue to make money.

On both counts, all is well.

So fuck putting people to work or fixing the housing market or helping middle and working class people.

So long as the Masters of the Universe continue to live off the gigantic taxpayer-provided punchbowl first Bush and now Obama have created for them, nothing will change.

Now if the stock market continues to tank, well, THAT would be a different story...

2 comments:

  1. Pertaining to the stock market numbers, these are ALSO manipulated by the Fed. I don't have the link to another article on how Bernake has been dodging specific questions on how the Fed uses its PPT (plunge protection team) in controlling the markets. In the longer article there is more discussion of the manipulation of currency markets.

    But the following link relates how The Fed (which hasn't been formally audited since its inception in 1913) refuses to open its books to the government. Notice Bernake's reasons for keeping the Fed COMPLETELY unnacountable to The People through the Congress.

    http://www.financerevealed.com/2934/bernanke-tries-to-stop-the-federal-reserve-from-being-audited/

    "Federal Reserve Chief Ben Bernanke spoke at the Bank of Japan on May 25, 2010, demanding that central banks be considered “independent” of politics. “In undertaking financial reforms, it is important that we maintain and protect the aspects of central banking that proved to be strengths during the crisis and that will remain essential to the future stability and prosperity of the global economy,” Bernanke said. His meaning was perfectly clear. Congress — don’t pass legislation that allows you to audit the Federal Reserve. He said, “Chief among these aspects has been the ability of central banks to make monetary policy decisions based on what is good for the economy in the longer run, independent of short-term political considerations. Central bankers must be fully accountable to the public for their decisions, but both theory and experience strongly support the proposition that insulating monetary policy from short-term political pressures helps foster desirable macroeconomic outcomes and financial stability.” The link above contains a much longer article.

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  2. By the way, the Fed hasn't produced any list of where and to whom the TARP money was given to. Why? Because he doesn't have to. When bluntly asked to produce this list by a U.S. Senator awhile back, he just said "No."

    The American public, as well as the entire government is totally in the dark as to where the money went.

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