- Jun 6, 2007
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What the American people should currently be afraid of is systematic mischief in the stock market by some of the major players like hedge and private equity funds with the big investment banks acquesencising in the market manipulation. The reason for this suspicion is some of the statements made by professionals after this past Thursday's 1000 point decline in the Dow Jones Industrial Average which brought this Index into correction territory which did not make any sense. Now everyone knows that the markets have been on a steady rise since December up until the end of two weeks ago this rise has been all over the news it had created exuberance in the market and then after this past Thursday when the markets moved into correction territory you have professionals in the industry people that are supposed to be experts in investing saying nonsensical things like the following. We the investment community did not expect the inflation pressures seen in recent days in the economy; really you did not expect inflation pressure in December of 2017 Washington passes a tax bill injecting a trillion and a half dollars into the economy and over the next two years brings back into the U.S. economy two trillion dollars of foreign profits parked outside the U.S. and the unemployment rate is at historic lows, what are you brain dead? Or we did not expect the U.S. Treasury bond interest rate increases seen (which really have been moderate all things considered); really you did not expect moderate increases in Treasury rates when the Federal Reserve Board at the end of December says it anticipates raising the Fed Funds interest rate three times in 2018 and three times in 2019 and Washington is injecting a major shot of fiscal adrenaline into the economy through its tax legislation guaranteeing to boost inflation what are you completely clueless? These astonishing comments by professionals are setting the foundation for mischief by powerful forces in the U.S. financial industry to drive down the market in the short term scaring and driving out the Mom and Pop investor and then when bottom hits these forces and the mass of professionals that see what is going on and will be happy to go along for the ride buy in big-time and capture the rise in stock prices that will result from very good to great earning results that are practically guaranteed for the next two quarters because of the fiscal stimulus from Washington!
People should remember what really happened over the past two weeks and not be confused by those people and businesses scheming to drive the market lower! There was euphoria in the market, people jumping into the market thinking only that the market will rise not fully considering that the market can readily go in the downward direction that prices of stocks are ultimately linked to earnings not to the euphoria of stock buyers. What also happened in the markets is that you not only had a drop in the markets resulting from the inevitable removal of investor euphoria but you had this effect magnified by algorithm traders which are a big portion of the market selling en masse because their algorithms directed them to do so because of the drop in the market coupled with the increase in Treasury rates plus the country saw the magnification of this drop brought about by margin investors (investors that borrow money to buy their stocks) having to sell because the fall in stocks brought the stock prices of the ones they own below the mandates of their loan terms so they had to sell to pay off the loans as per the terms.
What the American people need now is the Federal Regulators to be on the job especially in regards to algrorithim traders insuring that changes to their algorithms are based on sound economic and financial principles. Federal Regulators now need to especially remember that the American people need you to be the watchdogs of the system to insure that the fix is not in that the system is operating fairly and that there is no mischief going on! Those inclined toward mischief in the markets would be prudent to remember that there is a God who sees all and all human being are accountable for all their actions to and as the Bible tells us God knows even how many hairs are on your head so if you're involved in a major offense like manipulation in the markets be assured God knows it and look out for his justice! God Bless America!
People should remember what really happened over the past two weeks and not be confused by those people and businesses scheming to drive the market lower! There was euphoria in the market, people jumping into the market thinking only that the market will rise not fully considering that the market can readily go in the downward direction that prices of stocks are ultimately linked to earnings not to the euphoria of stock buyers. What also happened in the markets is that you not only had a drop in the markets resulting from the inevitable removal of investor euphoria but you had this effect magnified by algorithm traders which are a big portion of the market selling en masse because their algorithms directed them to do so because of the drop in the market coupled with the increase in Treasury rates plus the country saw the magnification of this drop brought about by margin investors (investors that borrow money to buy their stocks) having to sell because the fall in stocks brought the stock prices of the ones they own below the mandates of their loan terms so they had to sell to pay off the loans as per the terms.
What the American people need now is the Federal Regulators to be on the job especially in regards to algrorithim traders insuring that changes to their algorithms are based on sound economic and financial principles. Federal Regulators now need to especially remember that the American people need you to be the watchdogs of the system to insure that the fix is not in that the system is operating fairly and that there is no mischief going on! Those inclined toward mischief in the markets would be prudent to remember that there is a God who sees all and all human being are accountable for all their actions to and as the Bible tells us God knows even how many hairs are on your head so if you're involved in a major offense like manipulation in the markets be assured God knows it and look out for his justice! God Bless America!
