Why does the business media insist on casting a blind eye on what is obvious?
By Daniel at 1 June, 2009, 9:00 am
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There are NO REAL INVESTORS buying this market. It is purely PPT. On Friday, for example, almost everyone lost money, all day, until someone, in the last 6 minutes of the trading day, all of a sudden, started to buy incredible numbers of S&P 500 index futures. Hundreds of thousands of contracts were purchased, and the buyer was seemingly oblivious to the fact that a sudden huge buy like that is so disruptive to the market as to insure that the buyer will lose millions of dollars. Yet, someone was buying hundreds of thousands of contracts, in the very last minute of the cash trading day, even though the futures had more than an hour left to trade. This entity was oblivious to the inevitable huge losses it would take on such a transaction. And, the ES (S&P 500 minis) launched upward, dragging the cash market (the real S&P 500) up with it, through the actions of arbitragers.
Who did it? Guess who? PPT with newly printed fiat dollars from then Federal Reserve. Yep, the filth that operate the New York Federal Reserve did it. They are crooks, and are trading against the real market (the rest of us).
Why waste taxpayer money in this manner? Simple. The big underwriters, Goldman Sachs and JP Morgan Chase, are sitting on billions of dollars of regional bank shares, newly issued, that no real buyers want to buy. Why spend 5x as much money pumping markets artificially?
Why not just buy the bank stocks directly? Because it is politically impossible to give yet more overt bailouts to banks, so they are turning to a covert bailout process of printing money, injecting a flood of this newly printed cash into the financial markets, and come what may. In the process, because a lot of newly printed dollars were exchanged for S&P 500 futures contracts, which increases the number of dollars in the system, and brings down the value of each one.
The big dealers who sell futures contracts (by far the biggest are usual J.P. Morgan and Goldman Sachs, again) love it. They know that PPT is eventually going to allow the S&P 500 to crash. So, when the Federal Reserve provides money to buy long in the futures market, the derivatives dealers will clean up, once the market crashes. The dealers, of course, are short to every long.
Smart traders will start heavily shorting the stock market, and going long on the dollar, because that is where the financial markets must go in order to enrich the PPT member banks, in the short to medium term, before this filth initiates hyperinflation, which is coming, but won’t get here until they deflate everything to escape from all their short contracts.
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