Bacause this market went up on pure intervention by the government which has poured cash in to the hands of Wall Street. What we saw Friday and yesterday is just a preview of what will come. The market is only up on minor short covering today, I doubt it will hold up.
Have fundamentals improved? Colonial Bank Group just went tits up, BBT had to raise capital to do the deal, credit defaults are rising and jobs are still being lost. The media has been preaching recovery because they are told what to say, not the truth. The truth is simple, out economy continues to shed jobs, there is no growth. Bank stocks are now 100% under the direct control of Goldman Sachs which has unlimited cash from the US government to prop up the equity in banks.
The taxpayer has to cough up almost 4% interest on the money the government is borrowing which is then given to banks for zero! That my friend is a taxpayer subsidy to the banks. They then lend that money from 5-30% interest depending on if it is for a mortgage or credit cards. Shareholders get nothing, not even a dividend.
Wall Street has one agenda, to rape the people of this country. Do you know of any industry that has the pay scale that bankers have and get 100% support from the government? Wait until you see the bonuses paid this year to the very bankers that were all but bankrupt back in March.
What happens when the Bush tax cuts expire? Anyone who wants to lock in 15% cap gains will have to sell this year. Stocks like EXM and DRYS are just toys that they can manipulate any time they want. I am convinced that we have not seen the bottom in the markets, without government controlling equity prices through Goldman, this market would have crashed long ago. GS is now responsible for over 50% of all the trades on the NYSE, you know who is in control.
They could care less about your money, they need to churn the markets for profit, right now the money will be made taking it down, not up. Just watch how the media feeds in to it, all to justify the downturn. Without government life support, the markets will tumble. Sooner or later they have to pull the plug.
Did you notice that many firms won't sell you leveraged short ETF's? How did that happen? They don't want you to profit in a downturn or to interfere in their manipulation. How did bank stocks suddenly become the darlings of Wall Street?
If you think this market is safe for investing, you are crazy. There are no investors, only day traders. Every firm on Wall Street trades, 24/7, they invest in nothing, why should you? It is worse than a casino, they fabricate false truths and lie all they want without penalty. Go to Vegas, you have far better odds.
Invest your money in hard assets that are not under the control of Wall Street. You have no clue what these companies are doing and who controls the stock. You are at a severe disadvantage, by the time you get the news it is too late.