They have insider trading which allow them to sell their stocks at high value, and then the rest of you have to sell at lower value, lower than what you invested.

Legal, transparent, easy distribution of money from the powerless, to the powerful. They do this all the time, but sometimes the pyramid scheme collapses like the dot com bust, and everything resets to their real values.

I’ll jump back in when I see something that shows me this craziness is slowing down.

29.01 Down 11.73(28.79%) 11:23AM EDT

time for the liberal idiots with yellen to start opening their mouths and clobbering the market over saying nothing of any substance… cue them in 10, 9, 8, 7, etc…

hang seng
21,404.96 +153.39 (0.72%)

Is today a DEAD CAT BOUNCE?

probably… but the market is clear over and over that it doesnt want to go down… why? cause where else on the planet would people put their money and stuff?

take it out, inflation takes its value away – you lose wealth

go into bonds, and the yeilds are so low, not the 8% of the prior big drop that was structural, so you cant even beat inflation with what they are giving…

stocks are really the only game in town
buying real estate is ok if you have the cash, but wait. when the rental market gets overaturated, boy are you gonna see lots of losses… LOTS of them… i am seeing 20% vacancy rates on mortgaged properties converted to rentals…

tons of empty investments losing value without proper maintenance. which is why i decided NOT to join them and will wait a bit as i do other things….

like start small cottage businesses that use cheap labor that is not permanent… hopefully that will pan out, but now my issue is high rent for working space…

but since my employers have not given me even a cost of living raise in 11 years, and i am out the child and home the 250,000 dollar difference i am out of… well. i am just working on making my wife ok.. then i hope for some event that erases me as i am an expense without a future or anything like that.

my family is everthing…
nothing else matters to me, not even me…
🙂

here’s Max Baucus, whom Obama nominated to be Ambassador to China, on the expertise he brings to the job: “I am no real expert on China.”

Senator Max Baucus, one author of Obamacare and one of its biggest proponents, admitted in 2010 that he never read the bill. He said that reading the bill would be a waste of his time. Now, Baucus, “a key architect of the healthcare reform law,” warns that implementing Obamacare will cause a huge train wreck.

such good hands…

Imagine if they were leading in a big war!!
you can be sure the ones that started the most wars in human history are imagining it… but they are torn… they would wait if it was a biden warren presidency next..

actually not… in 2008 we were trading 29 times earnings… The average market P/E ratio is 20-25 times earnings. Current S&P 500 PE Ratio is 19.08

so no. its not overvalued.
what it is is over etf
that is, huge amount of the market are in the hands of fund managers who when something happens run for the doors and sort it out later.

so stocks that have NOTHING to do with china are hammered.. VLO got hammered despite that it benefits from cheap oil as an input, so the oil price down helps them (and their finished products can be sold outside the US)

the saudies are doing what they did in the 1970s… or dont you notice how many old buildings even in obamas socialist video of things have slanted roof dormers… and angled to the south… today they waste energy as their surfaces get extra hot, but they were for the solar business that the saudis put out of business then when contracted caused the rationing… (which fuelded the chicken little contingent who yelled peak oil, peak oil, peak oil)

well, it was a given that the saudies would pump and ruin their wells to collapse the market in oil, and collapse the solar industry, to which obama just pleged another few billion to toss into it.

ie. if solar is more expensive than fossil fuels, then collapsing fossil fuels will make solar many times more expensive!!!!

the saudies been doing it for ages, and you can even find interviews where they explain what they do.. they know no one will pay attention to things that matter that way..

the contraction will come once the saudies damage their wells from overpumping!!! which is now starting to occur…

this is just a correction after a long rise without one. the US economy is not coupled with the chinese economy in terms of investments and so on. and theirs dropping with our high dollar means that we will be able to get products from them cheaper.. even more so with the yuan devaluation…

the bigger problem is that the ETF managers are not all that bright and run like scared rabbits causing this crapola to be worse than it would be…

remember they were edumacated by the chicken littles of academia…

i see this as a buying opportunity… and it will hit bottom soon, as there is nothing to keep it going down… other than irrational fear… and irrational fear is a buying opportunity… and you know it when everything drops and there is no systemic reason (like the CRA) large enough.

i am not even worried at all about it…
and am just avoiding selling so as to gain when it pops back like in the recent past… in fact it popped back so fast that those that sold off didnt have time to get back in!!!!

watch the vix… when it goes down again to more reasonable territory, thats when things are close to a bottom.. you cant call it, but there are things that are more likely then than not… a vix that hits 45 is not one of those things that indicate a bottom.

🙂

i got back into the market again a few years back and we turned 83% in the first year… and did more the second… this year i am down 16% with things situated to change that later… so i am not worried one iota…

if i worry, then you can bank on the fit hitting the shan given all the reading and studying i do…

there is nothing here but uncertainty
and the market HATES uncertainty
[which the left does not comprehend when they say the market loves war… really? the most uncertain of things is loved by the market? no, its loved by a few big players who can work it at the expense of all otehrs… what markets love is stability and predictability to remove uncertainty in what random things cant be stable or predictable]

you just described classical fascism…
ie. the left calls fascism (a socialism) chrony capitalism because people naturally dont like that collusion against them… they then dont mention that what they want is state ownership of everything, which is even worse!!!!

chrony capitalism is the communists term for facism, which attributes to capitalism the manipulations of fascism which is NOT capitalism any more than their solution, communism, is.

basically they claim that since capitalism allows fascism to take over without going after the fascists, the only viable system is the punitive deadly communism, which will avoid facism by removing the market itself and putting all ownership into the hands of politicians.

1) capitalism, the people protected from government and companies by the state

2) fascism socialism, companies and state against the people, once the state betrays their job towards the people whom they claim to protect

3) Communism socialism, the people are enslaved to work for the state which is everything, with a few owning it all collectively, including the people

calling it chrony moves the goal posts…
once in the middle, you can get people to run to the wrong goal and score for team enslavement

…and thanks again to Neo for your great blog!

2) S&P earnings figure to be absolutely PUNKED when the currency shifts are addressed by GAAP treatment.

3) So you’ll see a roll over in S&P earnings at the same time that KSA, Red China et. al. HAVE to exit the market due to external pressures.

4) No small amount of the selling pressure is coming from KSA// Kuwait sovereign wealth funds — now being tapped in a major way as a direct consequence of KSA’s price war in oil.

5) The currency// trade war between Tokyo and Beijing will not be letting up any time soon.

6) Red China built an economy on VOLUME not profitability. It’s the crux of most of her current ills. Poverty stricken proles are no basis for a consumer led economy.

7) The chronic sand bagging of silver and gold in futures pits// paper trades markets will end in tears. The Morgue will not be able to unwind its positions. ( I’m rather surprised that The Morgue has not bought out a slew of silver mining firms. )

8) It’s not possible to safely short most securities due to systemic corruption within the system. The only role of the pubic is to be the patsy. Wise investors are absolutely not wanted, as they’d queer the markets.

9) Momentum following hedge funds are quite happy to follow a down elevator.

10) The general public will continue to be fleeced by the insiders. The corruption within the SEC // NASD is nothing short of breathtaking.

Since these financial // economic crimes are hard to explain to a jury — they persist.

errrg

Fasten your seatbelts; it’s going to be a bumpy ride.