Why investors are paying more attention to Washington than earnings.
By Daniel at 4 February, 2009, 2:21 pm
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Todays advance has nothing to do with anyone having a newfound confidence in banks, financials or any of the other reasons so often cited in these articles every time the stock market rises back over 8,000.
These jumps have EVERYTHING to do with open market operations, and Federal Government purchases of huge blocks of stocks, to lend the appearance of some stability. When one looks at the volume, versus the movement of the market, this manipulation becomes clear.
Everyone I know and work with has either sold off all of their stock holdings, or is in the process of re-jiggering their 401-K accounts to try and save the last vestiges of their savings.
I cannot be convinced that this economy is going to be rescued by pouring money into things like the NEA, birth control or many of the other ridiculous items I saw on the Stimuluswatch website.
No, I rather think that The Feds will keep up their phony baloney for as long as they can, even if it means they are the ONLY market maker. We will slide into a depression, irrespective of these manipulations and it will be quite a while before we emerge. When we do, America will be a different place.
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