Proving that they still possess an iron grip on the ‘Stupidity markets’, the Dow tacked on nearly 200 points today on…wait for it…’better than expected’ GDP numbers!
Why else did ‘Government Sachs’ put out a ‘lowball’ number yesterday if not to distract attention from the totally bogus number that was actually announced?
Um, few openly doubted ‘green shoots’ even though nobody could actually point to one. With that being the case, who will call BS on the announced 3.5% GDP declaration , which involves more ‘slight of hand’ (and accounting tricks) than when David Copperfield made the Statue of Liberty disappear!
3.5% is one highly gimmicked number good citizen and the Obama administration shares that shame if they fail to denounce this falsehood which was authored by the financial sector! (P.S. by the way, don’t hold your breath waiting for that condemnation…it ain’t gonna happen!)
Oh, apparently there’s a new kid in the business section of the NY Times, when I copied tonight’s offering this morning it still carried the ‘anonymous’ AP attribution but the latest update has the new kid’s handle attached to it.
Markets Rise After Upbeat U.S. Growth Report
By THE ASSOCIATED PRESS
Published: October 29, 2009
Investors heartened by news of a stronger-than-expected economy went back into the stock market after a four-day slide. [Notice there is no mention of how moronic this looks to the ‘unwashed rabble’…]
The Commerce Department’s report Thursday that the gross domestic product rose at an annual rate of 3.5 percent in the third quarter gave the surest sign yet that the recession has ended and that the economy is healing, although problems remain. [Sadly, the fact these figures are fabricated out of whole cloth happens to be one of them…]
The reassurance weakened demand for safe-havens like Treasuries. That, in turn, gave a boost to stocks. A drop in the dollar pushed commodity prices higher, which helped materials and energy stocks. [How can these idiots even PRETEND this is a GOOD THING? Unless we’re back to last night’s ‘class war’ admission that ‘paychecks are for peasants’…]
The G.D.P. increase was faster than the 3.3 percent increase predicted by economists polled by Thomson Reuters. The growth was the best in two years and stops four consecutive quarters of declines that had pushed the economy into its worst recession since the Great Depression. [Too bad the entire figure is an accounting trick coupled with the ‘imaginary effects’ of pushing electrons around…which is to say there wasn’t enough ‘verifiable’ positive economic activity to fill a thimble!]
The economy was bolstered by government stimulus programs, including the popular “Cash for Clunkers” auto program and tax credits for first-time home buyers. Those programs did raise some questions in the market about the sustainability of the G.D.P. increase.
In midmorning trading, the Dow Jones industrial average was up 78.14, or 0.80 percent, to 9,840.83. The Standard & Poor’s 500 index was up 11.47, or 1.10 percent, to 1,054.10, while the Nasdaq composite index was at 2,085.85, up 26.24, or 1.27 percent. [Left unsaid here is what kind of ‘volume’ accompanied these market moves? The ‘problem’ with the six-month rally back to the 10,000-point level has been the consistent low volume of shares being traded.]
Mitch Schlesinger, a managing partner at FBB Capital Partners in Bethesda, Md., said that because of government support, fourth-quarter G.D.P should provide a better picture of how much the economy has recovered.
”Some of the artificial goosing of the numbers will come out and we’ll get a better picture,” Mr. Schlesinger said. He added that the economy will probably grow in the fourth quarter, but probably not at as fast a pace as the third quarter. [That’s his guess, mine would be that the economy will collapse in the 4th quarter…who do you think stands a better chance of being right?]
In the interim, however, investors will welcome the better-than-expected third-quarter report, he said.
Not all the news was upbeat. The number of people claiming jobless benefits for the first time dropped less than expected last week. The Labor Department said workers filing first-time claims for unemployment dipped 1,000 to a seasonally adjusted 530,000 last week. Economists expected a larger decline to 521,000.
However, the number of people receiving unemployment benefits on a continuing basis dropped sharply by 148,000 to 5.8 million, below economists’ expectations. [Which is a fucking disaster good citizen, these people went from ‘next to no money to no money period’…and in case you didn’t notice, winter is right around the corner…]
Investors were also watching testimony by Treasury Secretary Timothy F. Geithner to the House Financial Services Committee. Mr. Geithner told lawmakers the government was not looking to bail out struggling financial companies, and said legislation being considered by the committee would ensure that firms of any size could fail without risking a collapse of the financial markets. [Yet, bizarrely enough, Timmy and Benber are doing everything they can to avoid re-enacting Glass-Stegall…go figure?]
Meanwhile, bond prices fell, which pushed yields higher. The yield on the benchmark 10-year Treasury note rose to 3.47 percent from 3.42 percent late Wednesday.
The dollar mostly fell against other major currencies, while gold prices rose.
Crude oil rose $1.09 to $78.55 a barrel on the New York Mercantile Exchange.
Three stocks rose for every one that fell on the New York Stock Exchange, where volume came to 197.9 million shares compared with 178.1 million shares traded at the same point Wednesday. [This is wicked low volume…on a normal day, billions of shares change hands.]
The Russell 2000 index of smaller companies rose 7.53, or 1.3 percent, to 573.89.
Overseas, Japan’s Nikkei stock average fell 1.8 percent. In afternoon trading, Britain’s FTSE 100 rose 0.7 percent, Germany’s DAX index gained 1.2 percent, and France’s CAC-40 jumped 1.2 percent.
So yesterday it looked like we were staring at the beginning of what will turn out to be a serious market correction…which is still on its way but the gimmicked GDP data provided cover for more insider selling today (because you KNOW something’s rotten in Denmark…)
Think about it good citizen, the economy is bleeding jobs, wholesale yet we are expected to believe that GDP is advancing…somehow?
Naturally, we have choices…either the economy is getting ‘stronger’ relative to what it has been or we are getting our chains jerked in an effort to make things appear better than they actually are. This is being done so we don’t take the bad economy out on either our corporate leaders OR their bought and paid for representatives…who are merely following orders! (From their corporate overlords, not you, silly!)
Which brings us to the crux of the problem, doesn’t it…do you want to be lied to and told everything will be just fine or are you sick of this blatant manipulation to the point where you want to see some of these lying bastards swing for their crimes?
If we’re going with ‘majority rules’ here good citizen, I’m betting on the latter rather than the former.
Thanks for letting me inside your head,
Gegner
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