Wall Street: The Stupidest People on Earth Take Advantage of My Vacation to Get Stupider

Yes, while I was away in New York City and Boston (amazingly surviving those cities, my daughters, AND what we laughingly call our air travel "system"), Wall Street was unchecked by my restraining sanity. That resulted in expanding the BUBBLE in stock prices, and re-inflating the BUBBLE in oil prices.


Stock prices reached essentially their HIGH level since October, although they had previously reached essentially that BUBBLE (momentum driven, casino gaming) level THREE times since October. This was as we approached the end of July.


Now stock prices have often risen in JULY. However, August and September are notoriously the WORST months for the stock market. Some Octobers have been bad, but many have been "recovery" months. As I have said, Wall Street people are so very stupid that they never LEARN. They never actually anticipate. Therefore, the fact that there has been a MAJOR market decline EVERY year for the previous FIFTEEN YEARS (at least), during the period from the end of July to October, does not cause the truly stupid people on Wall Street to be cautious. In this trait, they are MUCH more stupid than sports gamblers, who destroy trnds by ANTICIPATING their continuance.


Thus, Wall Street computer gamers drove the stock market back into this computer gaming BUBBLE, in the face of both all logic and all recent history. Then the "smart guys" will BAIL at the first sign of a recurrence of that August and/or September SWOON, accelerating any drop and leaving the slow to hold the bag.


As usual, I am not telling you that there were no reasons for the stock market to go up. I am just telling you that there have been no reasons for the stock market to go THIS HIGH, in these burtsts of IRRATIONAL EXUBERANCE. I will go further on oil. There have been NO reasons for oil to go up at all.


Has not the "news" been "good"? Not that good. Yes, we are no longer in "free fall" on the economy. But there is no indication we are really recovering. We are merely bumpting along the bottom. In fact, we have done everything possible to short circtuit any recovery as soon as it starts, and the stupid computer gamers on Wall Street are doing their best to make sure thant happens (driving up commodity prices with every little indication of a "recovery"). Interest rates, inflation, and commodity prices are set to EXPLODE upward with any real--or even not so real--sign of a "recovery". Yet, the computer gamers on Wall Street keep hyping that every bump up is just the beginning of a BOOM (instead of the excuse for a BUBBLE in stock and oil prices).


Of course housing and auto sales are not doing as badly "as expected", and of course some corporate sales/profits are not doing as badly "as expected". Not GOOD, mind you, but not as badly "as expected". The economy shut down for awhile. Theat reduced inventories. At some point, some of those inventories have to be replaced, so long as the economy did not remain totally shut down. This is the SEASONAL time that usually happens--the SEASONAL time trucking usually does well (my brother owned that trucking company). Remember last summer? There was an uptick then, as well, as the first "stimulus" kicked in, and as we had a seasonal rise. Did not last.


We are doing the same thing again. $4500.00 for every "clunker" you bring in as a trade in on a new car. Think of what a boon this is to JUNKYARDS, and SLEAZY USED CAR DEALERS, as people make sure they have a junk car to "trade in". Then there is that $8,000 subsidy for peole to buy a house (first time house buyers). Don't you taxpayers fell "good" to know that you are giving people money to buy cars and houses!!!! I knew you did.


Wait a minute!!!! No, I am not even going to make the point that we are really printing the money, rather than using government revenues, as we mortgage the future of generations with unrestrained spending. Rather, I am asking the question as to what happens when these subsidies END. What happens when people can no longer get $4500 for their junk car, and can no longer get $80000 to buy a house? Is not EVERYONE who can possibly afford a new car or house going to buy one NOW (or before the subsidies expire)? Wehn the sububsidies end, is not the market (for cars, houses, etc.) going to COLLAPSE? Of course it is.


That is why this blog says that the present government has made an economic recovery impossible. The real "free market" has been DISTORTED by the Federal Government, and there is no cure for that distortion, except pain. It is like heroin. The withdrawal results in TERRIBLE PAIN. Or else you simply keep increasing the dose until you drift off into a constant fantasy world of oblivion.


Will we even be able to stop spending short of the final collapse--a collapse that WILL come? I don't think so. We are now addicts. The politicians are even more addicted than the "hick" people, who instinctively understand that there is something WRONG here (as exhibited by polls--meaningless as pollls are--on Obama's health care plan).


The "establishment" has become much more stupid than the people at large. Nowhere is that more true than with the Stupidest People on Earth on Wall Street, including the economic fascists featured in financial media outlets like CNBC. These people have bought into central planning, and this idea of a "partnership" between government, Wall Street, and Big Business. These are the people, of course, arrogant enough to believe that they could use computer gaming to turn our entire fiancial system into a computer planned casino. Loo9k how well that woked with derivatives, and all of the rest. Yes, I specifically include the evil people at Goldman Sachs in this--even as they head for RECORD bounues. Those bonuses are coming from US, as mot of the government actions since October have been specifically aimed at BAILING OUT GOLDMAN SACHS (a compnay that FAILED, and povided us with FAILURE Henry Paulson as Secretary of the Treausry). Where did the AIG bailout money go? It went, in substantial part, to GOLDMAN SAHS. Otherwise, Goldman Sachs was INSOLVENT. So if nayone tells you that the people at Goldman Sachs are the "smartest people in the room", they LIE. That is , they lie unless you regard that talent at getting the government to bail you out is "smart".


Yes, Wall Street is in yet another BUBBLE. You would thinkg they would learn. But these are not sports bettors, who are at least capable of learning from experience (in terms of specific bets affecting odds). These are truly the Stupidest People on Earth (always excepting the mainstream media, and similar thinking leftists, who have retired the original trophy).