CNBC: The Stupidest People On Earth!

CNBC is really part of Wall Street, as well as being "journalists". This is a double whammy, as this blog has established that Wall Street professionals and "journalists" are the only people in the running for the title of "the stupidest people on Earth". Thus, CNBC people are definitely pare of that group of "stupidest people on Earth", whichever group "wins" that designation in the end ("journalists" or Wall Street professionals).

Today provided yet another example. CNBC (on "The Closing Bell" with the "money honey"--I think Rush Limbaugh's designation, but he ay have picked it up elsewhere) was discussing the reason for the "volatility" in the last hour of trading. The stock market sold off again in the last hour today, and it is only in these sell-offs that CNBC "worries". CNBC, of course, avoided the correct explanation (computer trading, and the broken market that has resulted) like the plague. You only get that information here, on this blog.

What was the "explanation" CNBC was discussing? Obama or the Democrats in Congress (although that was mentuibed, only partially in jest). Nope. That is reserved for the last hour, irrational rises in the stock market. Nope. CNBC was trying to sell the (irrational, stupid) theory that mutual funds and hedge funds wait until the last hour to see the kind of redemptions they have to fudn, and then desperately sell (the kind of "explanation" that would confirm my conclusion that Wall Street people are the stupidest people on Earth, but which has no other merit).

Notice how the last hour rises recently have been larger, and more irrational, than the last hour drops--although they are both irrational, except with my "manipulative" explanation of computer, momentum trading. You only learn from me that the last hour, irrational rises are just as disturbing as the last hour drops, and have the same explanatiion. You only learn from me that both the rises and the drops are symptoms of a market that is broken and needs to be fixed. Am I the only non-stupid person left in America? It certainly seems.......No, I must reject going down that road, true though it may be. That road still leads to madness.

We can agree, however, that the people at CNBC are in the group of the stupidest people in America. In fact, the stock market has pretty much stayed the same since that big drop during, and after, that first "bailout" "crisis" (money never used for the purpose for which Paulson caused that "crisis"). The market continued to fall, in the week after the bailout, because it became clear that the bailout did not solve anything (as an automaker "bailout" will not). The stock market did briefly go lower on November 20, but we have mainly traded slightly above that post-bailout low, even though the news has gotten pretty much worse.

All we have done for some six weeks is go up and down, in irrational, computer trading driven moves. As I have told you. The people who buy at the top of the false rallies, or who sell at the bottom of the fictional declines, have to be the stupidest people on Earth. They see it happening time after time (the stock market returning to where it was), and yet they keep doing the same thing over and over again. This is truly irrational, and/or a symptom of a totally broken market which needs to be fixed.

Message to CNBC people: Just go away. No one should listen to you, I am confident that few do.

Yes, the stock market is holding up fairly well, overall, even while showing everyone other than the computer gamers why they should not invest in an irrational, broken market. The stock market pretty much should be "reading water", while waiting for the future of the economy (the real future, and not the "plans" of central planning politicians) to be clearer. It is the wild swings that are irrational--not where the stock market has need up (although where it has ended up on individual stocks may well be irrational).

I truly am the only one that seems to be worried about a broken stock market, enve though this computer gaming of uor financial markets has come pretty close to destroying this country and the world (bieng a big part of that financial "crisis" that panicked Paulson). We really do need to fix the broken market, or it will destory us in the end.

I say "Skyscraper Souls" on TCM in the last day or so (middling movie, with rating of 65 out of 100) A part of that movie was the exact kind of manipulation that is happening today: both irrational rises and falls created by people caught up solely in the fiction of the manipulation and crowd psychology that was occurring. The movie was made in about 1931, and clearly talking about 1929. Isn't it comforting--not--that peole on Walls Street (those stupidest people on Earth) have learned absolutely nothing since 1929?

I am not a believer in talking about another "Great Depression", when we are not even close. But if it does occur, you now know the reason.