WHY WE'RE IN AN ECONOMIC MESS
The current state of the world economy is very, very, very easy to explain. I can easily best any economist in a discussion of current world events. Never mind the fact I can best any economist concerning any issue...I'm just talking about the current situation. So here's the explanation: People are really stupid.
Today, the very slight and not unexpected drop in the Dow-Jones Average (DJA) of about 150 points is being linked to the current Egyptian situation. It also is providing an excuse for a rise in oil prices. Really? Is everybody really that stupid? Just when, exactly, did Egypt become a dominate world economic power? Hell, cheap, greedy corporations don't even contract out their customer service lines to Egyptians. When's the last time you called Sprint customer service and spoke with an Egyptian? Their total imports are around six bucks, American. Their exports are about twice as much. Just what sector of our economy is being so strongly influenced by unrest in a country whose major export is digital pictures of pyramids?
The other day a spike in unemployment was announced and the DJA rose!!! Good news...more people then expected filed for unemployment?!?! The interplay between the Market and world events is so complex, isn't it? And the people making the calls are so...so...so intuitive? Is that why there's usually a drop in the DJA every Friday?
Certainly unrest in parts of the world can influence where the big money goes but the guys that make the really big bucks off all the suckers investing in the stock market tend to wait until the end of the week to do some selling and skim off a few bucks to make their condo payment. Come Monday/Tuesday the exact same guys will be snatching up those “under-valued” stocks and will sit on them for a couple of days while everybody else realizes they may be missing out on a good thing and will also start to buy in pumping up the price.
It's EXACTLY like this: Buy 10,000 shares of Widget at $54 and sell it three days later at $55, guess how much you made? Sound simple? Too simple?? But that's the way it is. That's the way it's always been.
Attributing a drop in the Market to some world event may be valid from time to time, but just how, exactly does the current situations in Iraq and Afghanistan figure in? At one time the “escalated” activity resulted in a Dow drop and higher oil prices but all that “stabilized” and things were normal.
You sweat or get giddy when you're 401K moves up or down a few percentage points every couple of months. Meanwhile the guys on Wall Street are churning your portfolio and eating up whatever meager profit you may be making or taking a bigger bit out of your loses. They can do whatever they want since the Federal Government has absolutely guaranteed that you will bail them out no matter what happens.
In effect, you buying all the bullshit some moron spouts about the stock market directly contributes to gross manipulation of the price of everything and the wealth of a select few. Unrest in Egypt? Really? It just happened today? None of the geniuses in the world saw this coming? The guys whose very wealth depends on monitoring such events were caught completely off guard? Now they're in some sort of panic? Clearly and indisputably, these guys are really bad at their job if anything like this ever comes as a surprise. I admit, I had no idea what was going in Egypt because I didn't care and it doesn't matter. It puts no money in my pocket...and that's what it's all about.
Today, the very slight and not unexpected drop in the Dow-Jones Average (DJA) of about 150 points is being linked to the current Egyptian situation. It also is providing an excuse for a rise in oil prices. Really? Is everybody really that stupid? Just when, exactly, did Egypt become a dominate world economic power? Hell, cheap, greedy corporations don't even contract out their customer service lines to Egyptians. When's the last time you called Sprint customer service and spoke with an Egyptian? Their total imports are around six bucks, American. Their exports are about twice as much. Just what sector of our economy is being so strongly influenced by unrest in a country whose major export is digital pictures of pyramids?
The other day a spike in unemployment was announced and the DJA rose!!! Good news...more people then expected filed for unemployment?!?! The interplay between the Market and world events is so complex, isn't it? And the people making the calls are so...so...so intuitive? Is that why there's usually a drop in the DJA every Friday?
Certainly unrest in parts of the world can influence where the big money goes but the guys that make the really big bucks off all the suckers investing in the stock market tend to wait until the end of the week to do some selling and skim off a few bucks to make their condo payment. Come Monday/Tuesday the exact same guys will be snatching up those “under-valued” stocks and will sit on them for a couple of days while everybody else realizes they may be missing out on a good thing and will also start to buy in pumping up the price.
It's EXACTLY like this: Buy 10,000 shares of Widget at $54 and sell it three days later at $55, guess how much you made? Sound simple? Too simple?? But that's the way it is. That's the way it's always been.
Attributing a drop in the Market to some world event may be valid from time to time, but just how, exactly does the current situations in Iraq and Afghanistan figure in? At one time the “escalated” activity resulted in a Dow drop and higher oil prices but all that “stabilized” and things were normal.
You sweat or get giddy when you're 401K moves up or down a few percentage points every couple of months. Meanwhile the guys on Wall Street are churning your portfolio and eating up whatever meager profit you may be making or taking a bigger bit out of your loses. They can do whatever they want since the Federal Government has absolutely guaranteed that you will bail them out no matter what happens.
In effect, you buying all the bullshit some moron spouts about the stock market directly contributes to gross manipulation of the price of everything and the wealth of a select few. Unrest in Egypt? Really? It just happened today? None of the geniuses in the world saw this coming? The guys whose very wealth depends on monitoring such events were caught completely off guard? Now they're in some sort of panic? Clearly and indisputably, these guys are really bad at their job if anything like this ever comes as a surprise. I admit, I had no idea what was going in Egypt because I didn't care and it doesn't matter. It puts no money in my pocket...and that's what it's all about.
Labels: economy
posted by PONUSJOE at 11:34 AM
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