By Dr. B
Are you angry that Congress overspends and the Federal Reserve continues to print money out of thin air? Then why aren't you angry that Wall Street robs small investors through dishonest manipulation of prices? Dr. B. compares Wall Street's manipulation of their money supply to that of Congress and the Fed in this insightful article.
A contradictory investment climate exists because the Fed bombed Wall Street with money. Hedge funds and investment banks don’t care that short-term Treasuries pay next to nothing. They buy Treasuries as collateral in up-leveraging speculative plays, especially in commodities. Wall Street elites expect to recoup the losses of 2008 as well as to grasp massive new profits, even if major indexes top out well short of their former highs later this year or next year.
A continuing rally gives Wall Street elites an elevated platform from which to go short when the U.S. economic sovereignty crisis ripens. Additionally, the rally works to dilute the portion of total capital held by the general public — a public that is skeptical of the stock market because it has its eyes on Main Street conditions.
The malaise on Main Street is thick because manufacturers and consumer service suppliers are worried about the financial health of the American homeowner. For the time being, Wall Street is on another track. It doesn’t have to provide good value or quality service to America. Among the things it needs most is for the U.S. government to keep churning out more Treasuries. Government debt instruments (as collateral) are useful to market manipulators in supporting bid pressure on stocks, thus keeping the bull trend alive.
An Unholy Trinity: Congress, The Federal Reserve, And Wall Street
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