General Category > Economy/Business

Sign of a financial Armageddon?

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Oceander:

--- Quote from: 240B on February 08, 2013, 03:01:24 pm ---My understanding is that the stock markets have been artificially propped up by simulus cash for the last four years. What this has done is it has taken away the natural ebb and flow of the markets. Markets tend to self-correct. When this economic correction cycle is stymied by printing money and throwing it at the markets, it creates a dam-like situation. When econmics and math is replaced by politics, the markets become unpredictable because suddenly the normal rules no longer apply, and nobody knows what the new government 'investing' rules are or what they are going to do from one day to the next. Government interference and manipulation doesn't 'fix' the downturns, it postpones and interferes with them and causes uncertainty.

Government does not have the same outlook and priorities as investors. And, since government money is either taken or printed, they do not worry about profit and loss. After all, its not their money. It is not money that they worked for and made, in the traditional sense. Government money is a kind of artificial money. It is like it is not even a real thing to them. So, they are willing to do anything with it. They give it away to their friends and all over the world. They spend it on wild lavish parties and luxurious vactions. They give themselves 'crazy' salaries and benefits. And they invest in industries which have no economic viability, while tearing down through regulation traditional companies which have been profitable for over a hundred years. A wildcard element like this in the markets really mucks everything up. In the effort to create 'stability', the government has actually undermined the markets by injecting an artificial, unpredictable, factor into the equation.

Furthermore, obviously, printing money devalues the dollar. So, you may have a screaming market topping 14,000 but it does not matter because the market is being valued in worthless newly printed Obama-bucks. And, the increases in capital gains taxes, skew the investment profitability calculation. A screaming market is worthless if the government is just going to confiscate the profits. You have to ask yourself, is this investment worth the risk, or should I just spend the money now?

So, you have a market which is volitile and manipulated by the government, which is being valued in a currency which is volitile and manipulated by the government, and more is printed every day. All market forces and economic theory is then out of the markets, and everyone is left to wonder what the crazy government is going to do next. Ergo, you have dependency on and linkage to the government for stock evaluations which used to be a purely market driven calculation. So now, when the government goes south, everything goes south, since the government has inserted itself into every crack and crevice of all the functioning markets.

And that's how it goes. Leftists just cannot leave anything alone. They saw a functioning equities market and they had to control it, for no reason, just because it is there. They saw functioning coporate and energy industries and they had to contorl it. They saw a thriving small business market and they had to control it. They saw private ownership of land, property, and estates, and they had to control it. The only way the government increases their relevance and authority is through regulation and control. At this point, they are totally out of control. They see a thriving functioning society and they must control it. Now, they want to control what you eat, what you drink, what you say, and what you think. However, in their attempts to control, they ultimately wind up destroying the very thing they covet.

And Lennie continues to pet the dead mouse.

--- End quote ---

Bingo!  I'd give you a cigar, but they're too da*ned expensive now.

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