The purpose of this lens is to document and highlight the current inhumane and abusive treatment of dogs in The Peoples Republic of China, with the hope that worldwide knowledge and attention will support and assist the Chinese people in securing adequate and necessary animal welfare protection. So, my argument at Seeking Alpha is that the Fed may want to crash the stock market to scare investors into fleeing stocks and buying bonds, which will also keep interest rates low, which is another Fed goal. The pumped stock market may go on for awhile, but it is a crap shoot for the little investor who does not have access to the information that the biggies have. I still say it would be better had the Fed not bailed out the banks, bought bonds, bought stocks, controlled the housing market. Selling of pledged shares by the lenders may prompt a fall in the price of a stock.
And they have the power to drive the market back up. Hedge funds have an interest in helping their counterparty buddies, the big banks. They have the ability to get out of the market on a moment’s notice if bad news is worse than anticipated. So far, the market is ignoring the ominous sign that commercial defaults are starting to pick up, also announced by Bloomberg on 4/1/2009.
It is my opinion only that people with time or savings limitations be very careful in this market and don’t get greedy. The fear of deflation that comes from this California market is igniting the massive spending that is taking place. Market manipulation is in full progress and the stimulus package probably gave the manipulators more clout. I think the stock market is overvalued right now considering the low economic recovery we are in. I’m not sure what investors are all excited considering that unemployment hit 10.2% the highest in 26 years. The growth of the stock market since its march low does not match the pace of our ‘economic recovery’.
I think those banks bought as much stock as possible with the $700 billion they received from the US taxpayer. The first week of march is when the dollar started declining, the stock market started its trek back up, and the same time that the other currencies started appreciating against the dollar. It is hard to have faith in the stock market, for some of the reasons you mentioned.
There is too much bold font, and the discussion is an assortment of things, including your take on the Federal Reserve, some pundit’s take on unemployment, references to the mysterious crash in May, your opinion on whether the market was oversold etc. You assert that the stock market is being manipulated in the title, and although you provide evidence in favor of that point, you tend to overreach with random asides, such as the part about the whole credit crisis being fabricated.