Posted on 09/04/2014 2:20:28 AM PDT by markomalley
There is no other place to put your money.
Investors from around the world are parking their money in the United States stock market. The economy is rebounding. All this may be true. But is it not also true that the “stock market” has become a managed affair? Managed by whom one might ask. Well, some evidence is starting to come to the surface.
The Federal Reserve is a Central Bank that is charged with a curious power to smooth out the blips in the banking system, keep stable prices, maintain moderate interest rates, and promote full employment. Noble endeavors no doubt.
The Fed, as with other central banks around the world, have their ranks often filled by those plucked from the banking and brokerage industry. Those schooled in economics and the like should be in position to dispense wisdom when such is required.
Some claim that the entire arrangement is designed to enrich a few due to special flows of information regarding the bank’s operations. In the past the Central Bank’s machinations have mostly dealt with interest bearing securities such as bonds and notes.
The Fed and other Central Banks seem to operate at arms length to any arrangement of accountability. Because of this, these banks seem to self expand their powers and broaden their scope. If the environment is good, a blind eye is turned. If the environment is really good, both eyes are blind. Stocks are at all time highs.
Central Banks are buying the stock market. Do not question if this is in their mission statement or within the scope of their mandated operations. Stocks are up, all is good.
(Excerpt) Read more at americanthinker.com ...
The bubble caused by this is massive and it cannot continue indefinitely. We are living in crazy times where any sense of moral hazard is gone... There will be hell to pay...
bmp
For some reason it helps certain people cope with the natural chaos of reality to believe that there must be some secret cabal that is actually controlling everything. It’s not the cabal that frightens them nearly so much as the idea that nobody might actually be in charge.
The forces are called supply and demand and the evil twins risk and reward.
The real question is....What is going to happen when interest rates rise?
Will investors take their money out of the fake stock market and put it into real bonds or other interest bearing instruments when they are able to compete?
I think that is the reason that we have been seeing the stock market GO UP when there is bad economic news. The investors know they have a couple of more quarters of low interest rates and thus more money being pumped into the only game in town (stock market).
I fear that an economic recovery may lead to the stock market's undoing.
Comex ( Commodities Exchange) is no different. Precious metal are kept fairly low so the paper investors won’t try to exchange for physical metals, which are not available to cover the amount of paper sold.
It ain’t the elites unless you mean government.
parking their money in the United States stock market.
This has happened before. Time to read THE VAMPIRE ECONOMY - DOING BUSINESS UNDER FASCISM.
Unfortunately the lesson from reading the book appears to be that it has to play it self out. Survive and be ready on the other end.
http://mises.org/document/3080/The-Vampire-Economy
The stock market is inflated by China.
China is currently knocking our socks off, in global competition.
We cannot invest in China except as minority owners.
China is the reason for our inflated stock market bubble.
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