Totally silly to even pay attention to that comment. First of all to use the word STOCKS is so broad. There are PLENTY OF STOCKS that have not only dropped 50 % or more but are trading down at levels that are less than 40 % of their all time high to low range anyway.
So what he should have said is there are certain select names that will probably not lose 50 % of their high to low range because they are being propped up to make the INDEXES look good since these stocks are tools to move the INDEXES.
Now of course he WILL NEVER EVER SAY THAT.
So then you know how this has to end. Is government capable of anything other than screwing everything up?
I am not making this up. This happened today at 10 15 am when the selling really got going. To me that was the ultimate signal. Pay us interest for your house and buy our overpriced stocks and use margin interest while we take it back down in your face.
Banker told me today to not pay off my house.......refi it and take the money and invest in stox.
And as I said about PLUG. Only down 41 percent. No big deal...really...no problem........
MAMA, HOKU, PEIX, SCON, LMRA, and how many dead internet graveyard stocks.
The indexes really mean nothing. Non-reflective of anything. Many suckers got taken on PLUG as I suspected they would.
The financial statements told us how dumb it was. They can survive now until they run out of cash due to their pump and dump. Then they will try again.
They can demolish all the cities they built with out people living in them and then rebuild them and say there is demand.........
PLUG is pretty much the same as some of those old silly deals that could not survive without issuing more and more stock until poof,,,,,,,no more.
Such as MAMA, HOKU, LMRA, ESLR, ...lots of solars.........SCON........there are so many of them from the past. Lest I forget,,,,,,,,C and BAC.......
There is a whole new generation of suckers as well, that listen to the commercials about retirement funds and so on. The INDEXES are NOT REFLECTIVE of the way most stocks bag common shareholders. How can they be? They are indexes with special math formulas that dislocate reality intentionally to get the attention of Joe B Sucker.
None of it matters. There is simply going to be a day when it all implodes. There is no market for US Gov debt. If there was then the FED would not have to print and stick debt on their balance sheet. Notice I did not say buy. The FED does not earn trillions to then go BUY something the way we earn and buy. They just exchange QE credits.
If there was a market for US GOV debt the the social security trust fund would not have been raided and sitting on 8 trillion or more of treasuries.
The boys are intentionally pushing this stuff up because if they get it high enough, as it falls, it will appear as if it is a good bargain on the way down. Kind of like the NK futures looked like a great bargain too. IT then took YEARS for the NK to get off the floor, and NOT RECOVER. You are looking at a very long term event and process developing right before your eyes.
A little early to say 20k. How about taking out 165.26 on the diamonds to see if higher prices attract more buyers. Hard to believe it but buyers are higher.
The value is expressed in the electronic markets. If I am short at 100, and the company is bought out for 200, and then DELISTED, I lose.
If I am short at 100, and the company stops trading due to fraud and then delisted, I win. If there is no company left there can be no stock and no trading.
Was I ever a shareholder?
No I was not.
QE credits end up in the accounts of bond dealers out of thin air. The credits can be used to buy stocks. That is the summary of the article.
If I short and I am correct and I never cover, was I ever a shareholder? What if the stock is delisted, So where did the money come from that lined my pockets? It could not have come from another shareholder because I did not buy stock from a shareholder to get short.
That's the point of this topic.
Who gets QE CREDITS? Do the short funds get them?