Monday, May 7, 2012


Greetings good citizen,

Once again we observe the ‘sun up over the NYSE effect’ on global stock markets. For some bizarre reason exchanges around the globe rise in tandem with the opening of NYSE…

Must be that anticipating great things phenomenon…

Because there is no ‘logical’ reason for stocks to be overpriced by some 2000%! (Or some other ridiculous number, it’s hard to tell when you don’t have a reliable benchmark.)

Um, like many things we hear in the corporate owned media we will have to be patient and see what the newly elected Mr. Hollande does with the French economy before passing judgement on his alleged ‘socialist’ credentials.

But I digress, today’s offering is indeed about the stock markets.
The departure of long-term investors does not always lead to lower trading volumes. When people are pulling money out it can lead to spikes in trading, as it did in August when the European debt crisis heated up. But when long-term players exit the market it can lead to a reduction in trading over time, which has many market participants watching the behavior of ordinary Americans like Fred Lines, a retired electrical contractor who lives on Long Island.

Mr. Lines, who is 75, said he used to trade stocks regularly, and had most of his money in stocks even after retiring and many of his peers pulled back. He started to retreat after the demise of the investment bank Bear Stearns in 2008 and has continued to retreat, most recently in December when he shifted funds from preferred stocks in blue-chip companies to corporate bonds. The recent positive returns have not dispelled his fears that the market will suddenly turn on him.

“If it goes up, I know it’s going to go down again,” Mr. Lines said. “I used to just buy the stock and hold it — after a few years it was always up. Now you can’t trust that.”

Hey, once upon a time the expression was ‘as safe as houses’…now it appears unlikely that any of us will find a ‘greater fool’ willing to overpay massively for a stack of lumber that can be replicated for a fraction of what we currently owe on it.

And if you think that’s going to turn around anytime soon you are sadly mistaken.

The Real Estate market won’t get fixed until we repair the employment situation…in fact, under A Simple Plan they would be repaired in tandem!

The only way to solve the unemployment crisis is to cut the workweek/day in half…in order to successfully do that we also need to cut the worker’s expense picture in half…and the easiest way to accomplish that is to eliminate their ‘housing expense.’

Slightly more than half of what the average worker earns goes towards the expenses associated with keeping a roof over their heads.

To make matters worse, many can’t swing lodging of any type unassisted…largely due to the global race to the bottom our negligent politicians have done nothing about.

Shift mental gears with me as we double-back to Saturday’s post when Mr. Chomsky accused the West of committing ‘economic suicide’.

Labor force participation is down while poverty is skyrocketing!

And yet the greedy few are richer than they’ve ever been.

In the Nineties this phenomenon was brushed off as the result of a ‘lack of international law’…which was then and is now happy horseshit!

What we’ve really been, er, observing is the outright collapse of the international justice system!

As I have pointed out repeatedly, we DON’T have a money problem, we don’t even have a labor problem…what we’ve got is a resource problem that is creating one fuck of a LEGAL PROBLEM!

Another universal scapegoat has been ‘incompetence’.

Which is to ask just WHO thought it was a GOOD IDEA to ship our production capacity HALF WAY AROUND THE PLANET when we are RUNNING OUT OF FUEL?

‘Cheap’ super-freighters huh? Worse, (as I have pointed out repeatedly) the ‘cheaper there’ doesn’t exist!

The ‘high price’ of US labor is pure currency manipulation! Just as the (artificially low) price of Chinese labor is achieved the same way!

Then there is ‘productivity’ which is also just so much twaddle!

Units per hour only matter when a capitalist is trying to wring a profit out of effort.

Eliminate the coin in the greedhead’s pocket and ‘productivity’ becomes an exercise in meaninglessness!

By eliminating this useless measure we can return the focus to where is should be, building more durable and efficient products rather than the current (wasteful) drive to build faster and cheaper, often resulting in shoddier work.

A shoddiness that is often met in the marketplace with, hey, if you don’t like it, buy someone else’s…and guess what? There isn’t anyone else’s to buy.

They get away with their shoddy tactics by turning their customer base into a captive audience.


You take the shoddy crap and like it or you don’t get the sumbitch!

And if you don’t like the ‘roller coaster’ that the stock market has become…don’t play it!

Actually, you’re an idiot if you invest and you’re NOT being coached, step by step, by an insider. Without reliable inside information, you’re going to lose (largely because the markets are no longer connected to reality.)

How’s that as a repository for your retirement funds?

Thanks for letting me inside your head,


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