There is no one to sell stocks to anyway. You basically just said that when you said that the jobs report is bogus and the jobs created are not paying a living wage.
The ponzi is comprised of two types of "fresh money". The money that the banks are getting from the fed to pump price and the money that would be available from Joe Retail who is barely surviving and opens his or her on line trading account.
And part of the Joe Retail money are things like 401k's and so on.
So......there is no one for the banks to sell it to anyway.
This is exactly why the banks were prohibited from doing this type of activity and Glass Steagall was created.
The bottom line is that the STOCK INDEXES represent nothing other than a talking point for the politicians to reference.
What is the value of a piece of art? Or a so called classic car? Ever go to a live auction?
The entire game is all about hurting the over leveraged traders.
You are correct. There is only so much demand in the world and do you really want to spend 165 $ on a pair of tennis shoes that are the 2016 model when you can get the 2015 model for 42 $?
Do you really want to get that Dunlop M2.1 tennis racquet for 179 when you can get the same one called the M 2.0 from 2015 for 59 $?
Or perhaps go get a used on on Ebay...........for almost nothing.
This is reality.........all hype and marketing........so what do you do?
Watch the show.......and wait for the lemmings to do the wrong thing........it happens everyday.
Ok best of luck on this.......most of the trends are down.......the one year trend has busted the 1 year average.........I do not see that as the best scenario.
I think you missed the point. Brand new Jordache jeans in the 1980's were very expensive.
Brand new Jordache Jeans today are not very expensive. I am not comparing New to used. I am comparing new to new.
Anyway does it really matter?
There are different types of inflation. Prices being driven up because there is a shortage and prices driven up because buyers want to be TRENDY.
A good example of this of course would be food and water. Food has simply been going up and up and up for the most part.
But, certain things, for instance, go up for a bit of time, and then you can find them at Walmart or Costco or Marshalls for substantially less than what they were in the past.
In the 1980's they were all trendy and so of course in 1980 dollars they were about 80 to 100 dollars give or take.
Now what are they? 20 today dollars?
There is no real economic growth. Certain areas of the country for sure housing and land prices are very high.
As they say, location location location.
So did you give any thought to my commentary about how I think that the banking system and the debts owed by the US GOV to the banking system are going to be reclassified? I still think that at some point something like that will have to happen for the dollar to maintain its status.
Just think about the debits and credits. So what my thesis does is extend the life of the game........it lets them print for much much much longer.
I have not done this.......but if you were to take a look at who holds USA DEBT, I think that it would interesting to simply look at what is held by the BANKING SYSTEM versus what is held by let us say.......entities other than the banking system.
I would say that if you back out that which is held by social security trust fund......trust.....that's funny .......and then back out everything that is held by the banks you end up with NET DEBT OWED TO OTHERS than the banks and SOCIAL SECURITY and who knows what other government agencies..........
That is the true debt. for starters.
If I owe you and you owe me......but.....you are in control of me.....in the end......you won't owe me Jack S_it........right? So of course ......since the US GOV really controls the BANKS anyway......in theory.....then in the end ......the debts owed back to the BANKING SYSTEM will be forgiven or reclassified......,I do not see a better way to continue the shell game.
You are correct Pud. So this is my thesis about what to expect. There will be a new way to account for debt.
Government debt will be classified in to different types. The debt that the US GOV owes the Banking System will be reclassified as something other than debt. It will be called something like..........." currency distributed for government necessities "
That debt obviously can never ever get repaid so why not just call it what it is.
An IOU called a treasury given to the banks that simply can not and will not ever get repaid.
Then there will be another kind of government debt. The debt that is floated to public that is not part of the banking system. So let's say there is a pension fund that simply wants to loan the gov back some money.......that debt will be shown as what it is......debt floated to the Private Sector.
The reality is that the banking system and the Federal Government are basically incestuous anyway.. Why else would the phony profits of the FED be given back to the treasury anyway? The banks are really not private anyway. Is anything? But out of all entities the banks are simply the ones closest to K street.
So my guess is that we will see some type of new accounting rule created by the AICPA or FASB that states how to handle this so called DEBT that was created when the banks printed money in exchange for worthless IOU's.
Or,,,,,,,,the whole thing will just collapse. Do not forget......the FASB came out with a way to handle the bad housing debts held by the banks when housing values were substantially less than mortgage values. They did not force the banks to take an immediate write off which would have blown everything up.
We will see some accounting rule changes. It is the only way to keep the game afoot.
I have followed you on GM. GM is in a 1 year down trend. BUT, the short was much higher.
I see this trade that you are engaging in as a counter trend trade. There is NO WAY you could have known how low this could have gone.
31.48 is the 1 year trend line.......so now what are you going to do? Hold for a gap fill to 34's?
Any Bank that is holding government paper is obviously in trouble since government paper is pretty much a worthless IOU. Wonder how much worthless gov paper the banking system is actually holding. Wait...trillions?????
The entire point of glass-stegall was to make sure that Banks, not Investment Banks........but plain boring banks were not speculating in the stock market.
Investment Banks, which were just glorified stock brokerage firms, only had so much fire power.
The moment that Goldman and the other cronies were given access to borrow to pump stocks was basically the beginning of the problem. The bottom line is the pumpers have more money than their clients so of course there can be no place to sell their overpriced wares.......it is that simple.
Mom and pop do not have the clout to move a price. Clearly Wallstreet was given access to something that they of course abused.......and now we will see where things go. They did that when the packaged up mortgages. Look at the result.
All promoters have to maintain bids......when they do not who can support price?
Whatamarket has a point. Nothing has changed.
The Glass-Steagall Act, also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression.
Now just exactly when did this get thrown under the bus?
Equities are a scam for one big reason. Consider how many people actually understand basic accounting.
How many? So few. How many understand data sets and how to actually spot a trend? And then look at just how far away a data point is away from a generated trend line or curve?
Not many. So it gives the financial firms a massive advantage because the uninformed are putting all their trust and faith into the hands of someone that is supposed to be looking at for the well being of the uninformed?
The only other thing I can think of that is very much like that is Faith Based businesses. Yes, I said Business. Can you say Altar Boy? Can you say Jim and Tammy Faye?
This is what Wallstreet is all about. Taking advantage of the people that are utterly uninformed and have absolutely no clue about what exactly an Asset is supposed to be and how to price it.
My understanding of the algos are that they somehow are able to look at order flow and then move things around to their advantage.
But in the end, the truth is that equities are a very questionable type of asset class. They simply change price way too often which implies a complete lack of stability,
I think you are also forgetting something. Technology is a double edged sword. As much as it can help it has also destroyed many jobs. I suppose some would call that progress. I will tell you what I find to be quite ironic.
There is a company that builds robots to do things like build cars, for instance. But, the robot builders are all humans.......go figure........I wonder what will happen if the robots start building robots........