The following statement is the single statement by this blog which has been confirmed the most often in the past 6 months (rivaled only by similar statements about the sanctimonious, stupid hypocrites in the mainstream news media): WALL STREET PEOPLE ARE THE STUPIDEST PEOPLE ON EARTH। You will recall what prompted this blog to issue this statement. It was not just that the people on Wall Street revealed that they were Communists one and all--willing to abandon the "free market priniciples" they clearly all never had so long as the Federal Government bailed them out. No, what prompted this blog statement was the beyond stupid habit of the coputer gamers/momentum computer traders on Wall Street to refuse to learn by experience. Thus, we had traders continuing to buy on days when the Dow was up 500, or even almost a thousand, points, and continuing to sell when the Dow was down 500 points. The buying was especailly stupid, given that the economy was clearly on the way down. But the continued selling, usuall mainly in the last hour, was clearly insane. How do we KNOW it was insane? Easy. The market ALWEAYS (I mean absolutely ALWAYS, since October) reversed these huge moves. Thus, the Standard and Porrs 500 has traded in a range between essentially 800 and essentially 900 since the big drop in October (actually pretty good, since the economy has deteriorated even worse than expected by those people who panicked in October--like Hentry Paulson and Ben Bernanke). How stupid do you have to be to continue buying when the Dow is already up 200 in a single day, and to continue selling when the Dow is down 200 in a single day? Easy. You have to be a Wall Street person. WALL STREET PEOPLE ARE THE STUPIDEST BEINGS TO EVER WALK THE EARH (thereby including Neanderthal Man). As I have said, it does you no good to tell me either that these people are day trading (obvious), or caught in a short squeeze. If, after all that has happened, you trade so that you can be caught in the kind of short squeeze to move the entire market, YOU ARE ONE OF THE STUPIDESTR PERSONS TO EVER WALK THIS EARTH. And "day trading" (or really short term trading, where you are playing a game of computer musical chairs) does not explain how you can be so stupid as to continue buying when the market is already up a crazy amount (which experience tells you will be reversed either the next da or in the near future), and experience tells you the market is already down a crazy amount which is likely to reverse the next day or two or three. Thus, we had the Dow go up the "most" in history on the last two days of last year. What significance did that have. NONE. First, it was stupid to look to "history" for this short a period of time, and no different than the Dow being up the "most" in history on May 18 and May 19. That is what I am telling you. There is no difference in the last two days of the year, and May 18 and May 19. They are both simply two day periods of no significance, especially in a period where the stupidest people on Earth are in control on Wall Street. What did you have to be to see any significance in that "rally", which continued into the first day or two of 2009. Easy. You had to be a Wall Street person or a media person. In other words, you had to be ONE OF THE STUPIDEST BEINGS EVER TO WALK THE EARTH. Predictably, the market fell right back into its established range, after trading above Dow 9000 and above 900 on the S and P 500 for a day or two. Those people buying at the top of these irrational rallies are, again, THE STUPIDEST BEINGS EVER TO WALK THE EARTH. You think anyone has learned their lesson? Think again. The Dow was down 332 yesterday (the NASDAQ a whopping 88). That broght the Dow under 8000 and the S and P close to 800 once again (the low was November 20-21, but that low was not much lower than the lows of October). Predictably, the Dow was UP 279 today, and the NASDAQ up 66. What happened to change things that much in one day? NOTHING (ok, IMB came out with good earnings, but not good enough to drive the entire market up this amount). What happened was mere computer, momentum trading by the computer gamers on Wall Streeet playing the same game over and over again. But how was buying after the Dow was already up 200 today? Right. THE STUPDIEST BEINGS WHO EVER WALKED THE EARTH. I have told you before, and have been almost the only one telling you, that the stock marketis BROKEN. It is SICK. These wild swings, when rational beings would learn from experience, can only be explained by a computer casino out of control. Why shoulw anyoe invest anymore, unelss you wanted to get in on the computer casino that Wall Street has become (confident in your ability to play musical chairs)? Not many. Yes, I am telling you that the "smart guys" on Wall Street--the ones playhing these momentum, coputer ganes--the ones buying after the stock market is already irrationally up and selling after it is already irraionally down--are killing the goose that laid the golden egg. No stock market can trade this way for long and survive. THESE ARE TRULY THE STUPIDEST BEINGS WHO HAVE EVER WALKED THE EARTH. Their only comopetitors are "journalists". Financial "journalists", being of both stupid worlds, may actually win the prize (by a whisker). Almost as stupid are the people acting like this is no problem, and that theere is nothing fundamentally wrong with the stock market. Whenever "experts" start talking about the "reason" the market went up irrationally one day, or down irrationally the next day, hod your wallet. You are listening to ONE OF THE STUPIDEST BEINGS WHO HAS EVER WALKED THE EARTH. There is no "reason", other than the sick computer manipulation that has taken over the stock market (and most other financial martkets, including the oil market). I am talkig about those "experts" who solemnly talk about the fundamental reasons that "investors" have moved the market so far up one day or down another. Those reasons do not exist. Sometimes there may be a reason for the direction the market moves. The magnitude of this moves is totally computer FICTION (in terms of rational, fundamental economic or "investor" reasons for the move). As I have said, I have been PROVEN right on this. I dare you to go back in the archives and tell me that any of my entries on Wall Street, and irrational stock moves, have been wrong. Even if the economy improves, a rational stock market recognizes the slow process involved and goes up in a measured way. The same can be said of market declines. These thousand point, or 500 point, or 300 point moves one way or the other, in a single day, are IRRATIONAL. They are being produced by the STUPIDEST BEINGS EVER TO WALK THE EARTH. Yep. I know that Wall Street is now running this country to try to save themselves--being responsible for our sudden lurch into socialism (alnog with our gutless politicians willing to be stampeded by Wall Street). So much the worse for us.
P.S. You may not have noticed that yesterday the stock market had its "worst" loss ever on an inauguration day. Now the mainstream media did not make much of a point of that (to avoid ruing Obama's big day). Indeed, of course, it had no ore meaning than the "burning" questioin of WHO FLUBBED THE OATH (major AOL headline today). Both things were totally meaningless, along I find the whole attention paid to WHO flubbed the oath as hilarious, as I found the original Drudge headline amusing (not to mentin that I found it amusing that my entry on this headline drew one of the rare comments on this blog, leading to the question of whether Obama supproters outraged at any suggestion that Obama is not perfect were "policing" the net to make sure that entries like mine did not suggest Obama had blown it). Prediction (fearless but obvious): If the stock market stages one of those irrational rallies here back to the top of its range, so that it is up a "record" amount for the week or month or next month, it will be a big deal in the mainstream media, as if Obama is totally responsible--when it will likely be another one of these meaningless gyrations we have had since October (meaningless, of course, except to illustrate that our financial markets have become a sick computer gambling casino).