But the cause (market manipulation through monetary inflation) of the economic downturn is not the cure (monetary inflation). For now, people think that is going to work. The boyz have this thing all juiced up in the 4th Q, and are suckering people in with false expectations for 2002.
But we lose either way, because even though we are witnessing a temporary rally off the lows, the price pressure created by the monetary inflation will continue to abort any economic recovery. It is just the nature of the game. Eventually the economic stalemate created by monetary inflation will cause productivity and prfitability do decline further, until finally we see a substantial asset price break.
Right now the cartel 'appears' to be doing everything they can to keep an asset meltdown from happening, but I really doubt they are dumb enough to fall for their own propaganda. At some point they'll slowly grind the market down until thet get what they want.
Banks have a lot to worry about because 65% of all residentail purchase money is based upon the hyper-inflated valuations of the last 2 years. When we throw in refinancing, we are close to 100%. If RE assets break by 40% - 50% that means a vast majority of RE loans will greatly exceed the value of the underlying asset, and will likely spark a massive amoun of foreclosures, and huge losses to the banks. This could lead to across he board bank failures. Which would lead to a complete economic disaster, which means the purported benefit of a fiat ponzi game run by the creeps at the cartel was no benefit at all.
So there is a motivation here by the cartel to do something to save their butts, even though even they must know eventually the cause (monetary inflation) is not the cure (monetary inflation), which means they have to work this thing into the hole so they do not lose their position.
We have a long way to go, down, but geez, after all this suffocating BS in the 4th Q, it could take at least 9 months to get past 9/01 lows. In the meantime the economy will be under seige, held hostage to the artificially created high prices the cartel inflation creates, prices that organic market forces are working their relentless, but painfully sloe process to breakdown. Not much one can do except wait, and sell rallies here and there.
Right now they are playing a technical game under 10K on the DOW, the 4th Q has pretty much been conceded and given to the buyers. heck, I was a buyer in Sep at the lows,but those trades are long gone now. It is a stubborn market, and people are not that bright. It looks like we have to wait an awfully long time for them to find out that whatever their expectations were for 2002, they just are not going to pan out. The pervasive denial as to the reality of what is going on is what creates this inordinate delay.
I thought, maybe, we'd get to the bottom of this process this year, but the global elite is still rigging, manipulating and playing games, 9/11/01 being the centerpiece of it all. So, here we go again.
Lastly, the attempt by the treasury to manipulate the bond market by killing the 30y T-Bond failed. I think that is a sign that all of this other manipulation will fail as well. It just takes a lot longer because the stock market and the stupid gullible public are much ewasier to manipulate than bond traders.
I'm glad you're not my broker.
Your opinion has sucked for the last two years.
It still sucks.