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Looking Like You Know What You’re Talking About Doesn’t Mean That You Do
Enough is
enough.
The
mainstream financial media always tries to offer fundamental reasons for why
stocks do what they do. If stocks rally it’s because on good earnings or
improved consumer confidence or some other development.
On the
surface, this approach is valid: the markets are meant to react to economic and
financial developments. However, the problems with the mainstream media’s
attempts to explain the market’s actions today are:
1) These
people are journalists, NOT investors
or businesspeople.
2) None
of them know what they’re talking about.
3) The
markets haven’t moved based on fundamentals since 2008
4) Most
if not ALL of the data coming out of the US is massaged at best or fraudulent
at worst.
Let’s start
of with the first two points. The people on the mainstream financial media
channels talking about investing aren’t investors themselves. They’re not
entrepreneurs or businesspeople either. As such they have little if any actual
experience in the markets other than as observers (on the outside I might add).
However,
this doesn’t mean that they’re not very good at acting knowledgeable or convincing on camera. And this is where
things become confusing for viewers. Oftentimes the people speaking on camera
is so good at looking confident and
knowledgeable that you are tempted to believe what they say.
However, if
you listen closely to what they’re actually saying, it’s clear they do not
actually understand what they’re talking about. Yes, they have the right
vocabulary and have some basic grasp of the terms and relationships they’re
describing, but that’s as far as it goes.
Case in
point, when was the last time ANYONE reporting for a mainstream financial media
outlet pointed out that the US’s GDP, employment, and inflation numbers are an
absolute crock?
Name one
time a talking head addressed the fact that the Federal Reserve is chaired by a
guy who has absolutely NO understanding of finance or economics. Or that he’s
committed perjury, fraud, and outright theft.
I could go
on for another 12 pages, but you get the general idea. These people are nothing
more than front-people for large corporations that make their revenue from
advertising dollars (usually from the financial sector). Their salaries and
income are directly related to how
much money Wall Street wants to spend on advertising. That, and their
viewership, which is directly related to how high the market is (and the US
Government’s bailout of their bankrupt parent companies… which of course
results in them being objective in their reporting).
So don’t
expect to ever hear any of these folks tell the truth, which is that that the
market’s moves are in fact controlled by just three factors:
1) The
Fed’s money pumps
2) High
Frequency Trading Programs
3) The
suspension of accounting standards and permission of endless fraud in the
financial system
Everything
else is simply peripheral issues at this point. Indeed, if you remove any of
these three key market props we’d be at sub-1000 on the S&P 500 in a matter
of days (if not hours).
We’ll go
there again at some point regardless, but don’t expect any of the guys on TV to
let you know it’s coming in advance. Did they warn about it in 2008?
On that
note, if you’re getting worried about the future of the stock market and have
yet to take steps to prepare for the Second Round of the Financial Crisis… I
highly suggest you download my FREE Special Report specifying exactly how to
prepare for what’s to come.
Make no
mistake, the Financial Crisis is not over. Not by a long-shot. Europe’s banking
system is collapsing, the Middle East is literally going up in flames, the
Japanese nuclear disaster is likely far worse than anyone’s admitting, and the
US stock market is showing a great deal of similarities to its performance
pre-the Crash of 2008.
My report
detailing how to prepare for another 2008 type event is called The Financial Crisis “Round Two” Survival
Kit. And its 17 pages contain a wealth of information about portfolio
protection, which investments to own and how to take out Catastrophe Insurance
on the stock market (this “insurance” paid out triple digit gains in the Autumn
of 2008).
Again, this
is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.
Prepare Now!
Graham
Summers
PS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.
You can
access this Report at the link above.
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You need to realize that everything Obama, Geithner, & Bernanke do, they do for The Banksters. Many people have lost homes. Many more are paying inflated rates on inflated properties which the banks refuse to refinance. Savers are getting lousy rates on CDs, but are charged 10%-24% on a credit card. From the top of the credit menu-board to the bottom, The Banksters have FREE REIGN to suck as much blood out of the middle class as they possibly can. It’s a criminal plan that TARP was paid for by The Taxpayers to save the banks from extinction, only for them to revive and viciously attack the hands that feed them. Henry Paulson should be charged with Treason for using The Taxpayers' Money to re-arm The Banks of Mass Destruction. Everybody is a victim, even the homeowner without a mortgage, his equity is dropping in its entirety; he's losing more than the guy with a mortgage. Condos sit empty because banks don’t want to pay association’s maintenance fees, while those fees rise for the rest of unit-owners to make up the shortfall. The Banking Cartel is waging a war against every American Citizen, and it won’t be happy until every savings account is drained, every homeowner is broke & evicted, every credit card holder is paying 24.9% + $88/ mo. in overlimit and late fees, and every house is in their possession. Even the foreclosure process is financially draining for the owner, with insurance and electric payments continuing until property is taken out of owners’ name, an average of 2-3 years. (Upon repossession, the bank doesn’t book the loss until resale, artificially covering-up insolvency issues). Wake up people, its not us against each other, its Us vs. The Banksters who run this operation with impunity.
I don't believe Josh Billings was referring to talking-head financial journalism per se but he could have been:
"It's not ignorance does so much damage; it's knowing so darned much that ain't so."
http://www.youtube.com/watch?v=0zYYCCsSjkw&feature=fvst
i think this guy pretty much sums up the MSM , hilarious...
"So don’t expect to ever hear any of these folks tell the truth, which is that that the market’s moves are in fact controlled by just three factors:
1) The Fed’s money pumps
2) High Frequency Trading Programs
3) The suspension of accounting standards and permission of endless fraud in the financial system"
Exactly.
But they can spend 24 hours a day talking about "market fundamentals."
Jesus wept.
as long as we are subject to central banks and fractional reserve lending, i will never believe the MSM. however, every "statement" or "story" will contain that one sentence of truth, but it is surrounded with irrelevant spin designed to work on the aspartame-high-fructose-corn-syrup modified brain. the trick is to weed out the one sentence of truth and move on quickly before one gets mis-directed.
This would be the perfect time for some Radio Zero...
Today's action at the close is a perfect example.
With 5 minutes to go the DOW and S&P tanked hard.
The speed of these dramatic swings that result from a confluence of factors is still initiated by a major player or players that many others are key'd to. As these true or currently favored market makers buy or sell they create a cascade across the floor to the pits to the public. While these ripple-turned-tsunamis are generated from competing sources, each with their own or subset of followers, the bottom line is that the general public is the last to know and assumes a great deal more risk for the reward.
Attempts to provide live broadcasts of activities on the floor are a nice attempt to capture for the retail investor the swings of greed and panic that flow across the floor throughout the day, but this has only come about since the advent of electronic trading dominance where the eyes on trained on the screen and the rise and fall of emotion captured by the announcer is in response to the trades already entered/executed.
The attempts to then display Level 2 bid/ask would then seem to be the indicator to follow for clear evidence of a shift but there is amazingly little correlation between any bid ask imbalance to a stock's impending movement. In fact, if anything, an imbalance is a usually a key to bet the other the other way!
I too could go for twelve pages but suffice it to say that market makers are legal bookies who job is to always keep things within their control by always attempting to keep things confused.
The trick is to look for opportunities like the USD/YEN where it is urgent that the YEN devalue in the short term and there's enough Yen floating around that there isn't a need for the primary dealers or anyone else to look to you as a funding source.
a mouthful is a mouthful
Hi, Graham,
Do you regard ETFs as phantom stock and just as vapourware ..... http://www.reuters.com/article/2011/03/31/us-usa-markets-etfs-idUSTRE72U... An incestuous market play in a creative virtual reality field for those inside and in the know?
Hi, Doe anyone know which 10 ETFs they were and what the reason was for the crash? ETFs track terrible.
Its worse than people everywhere not knowing what they’re talking about. Since these are unprecedented times all those who are calling the shots, by definition, literally do not know what they are doing.
Most of the population wants to hear news tempered with opinions that reinforce their beliefs. In terms of expertise, I tend to use the following scale:
1. I've heard of it.
2. I can spell it.
3. I know what it means.
4. I can explain it to others.
1) These people are journalists, NOT investors or businesspeople.
These people are actors and actresses, journalism is and has been dead.
Journalism is not dead...it's just not allowed on mainstream TV or Newspapers.
Without going into a long list of examples that journalism is not dead...may I point you to a place known as Zerohedge.com:-)
The article is about MM financial news, I was replying within that context.
Corporate media v. free media seems more accurate. A "mainstream" media that were free from exploitation for macro corporate ends would not be the same problem we have.
Paul/Santelli 2012
I'm voting for Trump.
Now there's a ticket for ya. Trump/Palin. Or vice versa -- same thing.
No, Rubio/Paul.
If voting could change anything...it would be illegal.