Even if Obama, Geithner, and Bernanke execute their ideas perfectly, stock prices will drop as much as 95%, because as bankers, they are earnings-focused instead of market-focused.
Earnings only make up a tiny portion of a stock's price, the vast majority is investor confidence in the free market.
Like the horrible depressions that resulted from the same, misguided "steal to prop earnings" strategy, they will have no idea why they caused prices to collapse.
That is why bankers are the least qualified people on earth to orchestrate a desperate plan to avert imminent banker failure. But that is obvious, isn't it?.
I think you're ascribing to incompetence what should be ascribed to malice.
ReplyDeleteThe people behind this strategy know what will happen this time around because they have an historical record to examine. They're doing it anyway, because they're not interested in actually helping the economy.
The average person is someone they desire to control and to leech from, not someone they desire to help.
No, I think in this case they're deliberately doing this in order to funnel as much in the way of resources their way as possible at the expense of everyone else. Because economics, after all, really is a zero sum game once you remove technology-driven productivity improvements from the equation.
Bankers are the least "qualified" people (if you measure "qualified" by their ability and desire to restore prosperity to the people of this country) to orchestrate a repair plan because they have no desire to repair anything, only to gather more wealth and (more importantly) power to themselves. Their motivations have not changed in the slightest. If anything, they must be encouraged by the resounding success of their machinations thus far.
And I see nothing now or in the future that can possibly work to counteract them.
Does your "95%" devaluation also apply to the corrupt banks who are so obviously feeding on the teets of the US government/taxpayer?
ReplyDeleteSeems GS and JPMoragan may go on indefinitely until we reach a recovery in some miraculous way or the whole system collapses entirely.
Thought this group might get a kick out of this site - http://inflation.us/
ReplyDeleteThanks Russ,
ReplyDelete"By spending $300 billion on long-term U.S. Treasuries, $750 billion on worthless mortgage-backed securities, and $100 billion on other federal agency debt; the Federal Reserve will be doing nothing more than printing $1.15 trillion out of thin air, which means Americans are guaranteed to see a sharp decline in the purchasing power of their U.S. Dollars."
Haven't they been saying that since $1 bought 1/14000th of the Dow?
Don't forget, Bernanke's very first interest rate cut, back in August 2007 is still officially "temporary" until it creates inflation. That was some powerful magic, wasn't it?