The hybrid bank entities then go to the government and ask for billions of bail out money. Guess what? They are not using the bailout money to lend. These entities keep the bailouts and form an insider trading circle to manipulate the market (the good old boys network is still intact). Not possible? These hybrid entities and few hedge funds combined have at least 300 billion to trade. If that kind of number doesn’t move the market, what will? Notice how the government doesn’t ask where the money is going after its dole out? Accounting rules (GAP) allow these entities to show money is still in the books, but not how it is used. Since nobody has any idea how much the bank’s derivatives and CDOs are worth, if these hybrid entities lose money to market gambling, they will go back to Washington and ask for more bailout, claiming the CDOs and derivatives are killing them.
You will only see strong manipulation with Dow Jones Industrial Average, because there are only 30 stocks to manipulate, and 300 billion goes a long way compared to say, S&P 500.
PPT pulls the strings by providing ammo (money) through government bailouts. This forms plausible deniability if PPT was found out to be manipulating the market; finger pointing would logically point to Goldman, JP Morgan, et al.
Here is the sad part: the middle class lose either way. First, middle class lose money via deteriorating pension fund and 401Ks, because not every mutual fund and pension fund manager can join the insider trading circle. Second, money is taken away by taxation so these hybrid entities can gamble with your money. This is the biggest scam of the century. And don’t get me started with financially irresponsible people.
This entry was posted on Tuesday, April 28th, 2009 at 7:48 pm and is filed under Investment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
