It was a match made in heaven…for them:
Guess which two Wall Street banks were acting as informal agents of the government in order to support the bond and stock markets and reinflate them?
Two big banks that are showing record trading profits, and a small group of enablers and assistants.
Its a near layup when the US fronts you the money and then works with you to take the markets higher via its Working Group on Financial Markets. Especially when it is on thin volumes based on ‘news’ which you help to create and control via frequent calls to young Tim who is your coordinator, in addition to all your other well-placed backchannel sources. You get a heads up, you use the futures to prop the markets. You need some good news, some can be arranged. Just like the good old days when Timmy was riding herd on the NY Fed desk.
Proof? No. But I was wondering just who was doing it – who was taking the stock market up on thin overall volume but massive volume on the most beat down financial stocks? Who was buying all these stocks when the Wall Street insiders were bailing out of stocks at a record pace? Well, it seems it was you, taxpayer – it was your money being used to play the stock market, artificially inflate it, give favored banks some big (and entirely illusory) profits. Why? Because the big banks and the big government need you to feel that things are getting better – so that you’ll go out and spend, so that revenues to big corporations and big government will rise, thus allowing them to carry the toxic assets for one more year, or so. To call this smoke and mirrors is to be nice about it – outright fraud is a better description.
Think about it – we’ve been bombarded by “good” news for months now. What is the good news? Well, when you dig in to the numbers, its all about how things aren’t as bad as some people predicted, while profits are better than some other people predicted. That less-bad doesn’t actually work out to good and beating the street after your expectations have been massively lowered doesn’t mean squat isn’t at issue – because along with this “good” news was the rapid rise in the DOW. The latest bit of “good” news I’ve heard is a story being floated in financial circles that consumer spending is expected to pick up for Christmas. With millions more out of work than last Christmas – which was a miserably bad season for sales – we’re being told that things will perk up this Christmas? Yes, we are.
The big question: How long can they sustain this?
I don’t know – its flabbergasting what they’ve already done. This is the biggest swindle in human history – Ponzi would be aghast that people could be this financially corrupt. But, if you’re going to be absolutely dishonest and use the taxpayers money as if it were free candy, then you might tap dance around catastrophe for a while, yet. I suspect it will be some months before it all comes home to roost – though it is certain that Timmy and Barry are hoping the collapse holds off until December of 2010 or, even better, until December of 2012.
Once we do get back in power, we’re really going to have to clean house, from top to bottom – and a lot of people simply must go to jail over all this.
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