Rick Santelli, "Rogue Brokers", Wall Street, Commodity Traders, and Our Financial People: The Stupidest People on Earth!!!!!!!!!!

"The startling spike in oil prices to their highest level this year on Tuesday was caused by a rogue broker who placed a massive bet in the Brent oil market, triggering almost $10m (€7m) of losses for his company.
PVM Oil Associates, the world’s largest over-the-counter oil brokerage, said on Thursday it had been the “victim of unauthorised trading"


The above is a news story presently linked on Drudge. You might note that the market "close" yesterday was apparently (according to MarketWatch.com) delayed 15 minutes on Friday by "irregularities"--it not being clear to me whether that was related to the above story or not.


What is the difference between a "roge broker" in the financial markets, these days, and a regular broker? Answer: NONE. These truly are the Stupidest People on Earth, and perhaps the most CROOKED (Enron anyone?). As this blog has repeatedly, and correctly, told you, the advent of computer trading strategis has completely divorced present fianancial markets from economic reality. It is WORSE than 1929, and the various fianancial markets (stock exchanges, Chicago Board of Trade, brokerage houss, etc.) seem to be doing nothing about it. If you think the government is doing anything about it, you are not paying attention. If you have any "confidence" in our financial markets these days, you are almost as stupid as the people on Wall Street (and elsewhere in the fianancial markets).


Doubt me? Don't. Listen to Rick Santelii. Remember, Rick Santellie is one of the "good" guys (a very ralative term) amond the economic fascists on CNBC. He seems to actaully believe in a free market economy, rather in this "partnership" between government and big business/the financial community (economic fascism: Larry Kudlow, this continues to mean YOU).


I heard Santelli on Friday, and it is the same line of bull a broker at Schwab have me years ago :(and repeated on MarketWatch.com and every other financial site for many years). Santellie was asked how he could justify oil (not to mention other commodoties) rising in price (to a price bubble, as correctly stated in this blog), while SUPPLY is at 21 year highs (in the case of oil and gasoline).


Santellii's answer was revealing, and the Bible of the Stupidest People on Earth: "Economic reality does not matter to traders. All that matters to traders is that the price is going UP". I ask you: Is this any different, really, than this "rogue broker? It seems to me the only questioon is whether these people are CROOKED, or merely stuid market manipulators. As usual, I tend to vote for both. . The Schab broker, by the way, told me that there was no such thing as a price "bubble" (can you see the echoes of the dlot.com debacle in 2000 and the housing "bubbble" that just put us into this deep recession, in conjunctiion with government policy). That broker told me that, by definition, the "market price" is whatever the stock (commodity, or whatever( is selling at. There is no such thing as an "overvalued" or "undervalued" staock. Therefore, there is no such thing as a "bubble". That last sentence is my translation, but a correct one. If you take the Santelli approach, which is the present computer gaming, "technical", approach of vritually all of today's traders, then DISASTROUS price bubbles are inevitable. There is no top in prices, because no one cares about economic reality. The corollary, of course, is that THERE IS NO BOTTOM (zero not being a bottom to these people). Once prices (of stocks or commodities) start collapsing, there is no one crying "ecomomic reality" to stop the fall.


These truly are the Stupidest People on Earth. I am beginning to think that, in their own way, they are as stupid as mainstream "journalists" (who are also in the process of destroying their own livelihood forever). Mainstream "journalists", of course, have retired the original trophy as Stupidest People on Earth, to give other people a chance at the new trophy. No, Surely that is IMPOSSIBLE> It just isn't possible that our financial people are as stupid as mainstream "jouralists".


IT ISN'T PSSIBLE. PLEASE tell me it isn't possible. I am having nightmares about it. I am no longer sure. Now we know that CNBC people are that stupid, but they are BOTH mainstream "journalists" and Wall Street people. But there may never be any sleep for me again. I am coming to the nightmare conclusion that almost everyone on Wall Street is that stupid. If so, we are in real trouble (for this includes Geitner and Beranke--Bernanke being the SECOND WORST FAILURE IN THE HISTORY OF WOLRD FINANCE, just behind Paulson, and Geitner being a contender for both of their crowns).