Wall Street’s Resume
I really feel that it is about time that Wall Street and the Federal Reserve pack up finance and go and get a real job, in the real economy. They are clueless as regards finance, and have actually been the driving force in the destruction of Americas real economy, and therefore YOUR REAL JOBS.
Does anybody want to give them a job? Here is their Resume.
We got into a real rip roaring boom, times were good the Dow rose from about the 180 mark to 1000, good boom times. Unfortunately big problems laid directly ahead. But at least we had some morals back in those days.
This was a tough period, the market wanted to react after such a big boom. We got into the money printing game in the late 60,s to finance the Vietnam war. The problem was that we were running a big trade deficit with France who started to demand real Gold for the boatloads of Dollars we were sending them each month. In 1971 Nixon dumped the convertibility of the Dollar into Gold so we all became Keynesians overnight. Now the printing could go into overdrive, we kept printing but the problem was that Gold went crazy against the Dollar and inflation was north of 15%, but at least we avoided the stock market crashing. It did crash in real money terms but all the sheep need to see are some nominal gains or even sideways action it always keeps them happy. They never understand the true meaning of purchasing power losses, as the value of the Dollar shrinks. In the late 70,s things had got so bad with inflation that Paul “hitman” Volcker was called in, interest rates went to 20% and we wiped out the industrial heartland of America with that move, but at least we got inflation under control, and that pesky Gold came back into line. It was finally time to party hard again.
1982 – 2000
We partied hard, up, up and away, we got into that nasty October 1987 crash, but we had easy Al Greenspan at the helm, a real party animal is our Al, this guy never takes the punch bowl away, he always keeps it full. We got out of that crash by dropping interest rates and printing hard. We also set up a market intervention department so that we could keep all profits and avoid the losses.
The problem was that bubbles started appearing everywhere. Al became like one of those Greek plate spinners, trying to keep all the plates spinning without crashing to the floor. He was good at it, he would talk about this and that and nobody would ever understand him, it was always about the party for Al. The biggest bubble was in real estate in the late 80s. Eventually it popped and we had the Savings & Loans crisis. The boyz made out well with this scam, huge profits in the boom, and the dumb taxpayer picked up our tab in the bust, it was also “alleged” that plenty of the repossessed property also went AWOL off the Governments books at the HUD. Just beautiful! Then in 1995 we started the tech boom. This was a gem the mother of all booms, we got dumb money to cough up billions of dollars for what were basically websites, these turkey businesses had no income and no assets, but were valued at crazy money. Sweet times, but this bubble popped…it had too.
2000- To Present day
After the Tech hangover we were all looking to easy-Al to get the next party organised. This guy never disappoints, we love Al. We were going back to our old friend real estate once again. Crazy Al dropped interest rates to 1%, and we gave away mortgages to anybody who was warm and breathing; and we were not actually checking out that criteria very carefully, if you know what I mean. Speculators, condo flippers, fraudsters; you were all more than welcome to the party. Dumb money really believed that their “investment” would go up by 20% every year!!!!!. Problem was going into 2007 this party was well and truly over, and it had a real nasty hangover. Al got out, and now we now have Ben. He is a good lad, but nobody partied like Al. I guess the public is finally wising up to all our scams, so it is time for me to get out and get a real job. Also been a shock to see Northern Rock die from the credit overdose as well as Countrywide and now Bear Stearns. These boyz partied real hard but I never thought it would kill them. Sure the Fed is trying to get another crazy party started someplace, along with their Government lapdogs. We have all these schemes, and interventions -- but in essence it is the same old scam: devalue the dollar and dump all the losses on the dumb taxpayer. I finally want to go straight, my conscience is bugging me, we have pulled so many scams and tricks, hurt so many decent people, it’s difficult to sleep at night. So I am looking for anything really, is anything left out there?
The history of Wall Street in a nutshell
- They have destroyed the purchasing power of the Dollar through excess money printing.
- This has led to massive and sustained inflation far higher than the farcical and lying statistics show.
- This has then led to a massive off shoring and outsourcing of real business and real jobs to less inflated lands.
- As the real economy moved largely offshore, Wall Street and the Government have defaulted to lies and manipulated statistics, together with blatant and repeated free market intervention to try and keep the illusion of prosperity going for a little while longer.
Just look at Henry Paulson last summer. He stated that “The economy is now by far and away the strongest that I have seen in all my years on Wall Street.” This is why the Fed which is not FEDERAL, and certainly not a RESERVE, is administering daily infusions of cash for Wall Street to survive in this strong economy. Any old junk is accepted at face value as collateral. It must be great to be able to run a business whereby massive bonuses are generated at all times, and all losses are socialised, impossible to actually fail, and carry any consequences of failure.
The Fed is now organising a very cosy, but sordid little takeover deal for JP Morgan, one of its own shareholders!! (No conflict of interest there then) which completely stitches up Bear Stearns shareholders, and it is all guaranteed by the Government, therefore completely risk free to JP Morgan.
Maybe I am wrong and we need to take the “experts” tips? like Henry Paulsons old firm Goldman Sachs, who caused quite a flurry in the Gold market at the end of 2007 by stating that the hot trade for 2008 when Gold was trading at about $800 an ounce was to SHORT Gold !!!!! THAT beauty would have worked well with a bit of leverage, made your trading account look like Bear Stearns share price over the last few days.
Or take the advice of CNBC’s top market man, the one and only Jim Cramer, who stated at the beginning of last week, and I quote directly
“No, No, No Don’t move your money from Bear, that is being silly, don’t be silly, Bear Stearns is fine, Bear Stearns is not in trouble”.
A customer once asked me what is the City Of London really like. I replied that behind the flash glass facades and the fancy suits it is really like a casino on the outskirts of town, run by the mob, frequented by all the local hustlers and fraudsters, full of flea bitten prostitutes, where all the tables are bent and the cards marked. Wall Street is the other lower class establishment.
Wall Street in reality is the only place whereby a man can glide into town in his new Rolls Royce to take financial advice from somebody who each night goes home on the subway. Nowhere on this planet does the old Latin saying CAVEAT EMPTOR = BUYER BEWARE apply more than on Wall Street.
18 March 2008
We at Trendinvestor have written many articles concerning devaluation and the market linkages and would state that we were probably the first serious analysts to work out the Federal Reserve Banks devaluation game and its effects on the various markets! Please review all our previous articles for yourselves.
At www.trendinvestor.info we offer services for trading the NASDAQ 100 our original system and two new systems for 2006 that trade 20 of the worlds largest International Stock Markets and also the Commodities markets. We also offer a managed account service.
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