Wednesday, October 5, 2011

Very Superstitious

Does anyone else find it strange that as the "Occupy Wall Street" astroturf protesters smell up the Street, stocks shot up at the very end of trading yesterday and posted nice gains today as well?  Italy has been downgraded.  Greece is going bankrupt.  The government is limping along.  There should be indictments coming for Holder and, assuming Obama was informed, for him as well on the Gunwalker scandal. 

Yet in the last hour on 10/4/11, the Dow climbed 4% after being down all day long.  This makes no sense to me.  One tends to think such volatility is something other than the result of totally transparent, aboveboard and honest trading.  It seems manipulated.  For be it from me to offer reasons for the behavior of an irrational market, but I cannot help being suspicious. 

My opinion is that the losers of OWS are simply tools (possibly unwitting tools) of The Powers That Be.  What both Wall Street and the protesters want is further expansion of government debt and spending -- i.e., another round of money printing, QE3, full-blown and completely inflationary.  The protesters may be the means of giving cover to Bernanke, the Fed, and the Obama Administration as they try one last time to blow a bubble in the economy.  It will give the financial sector a chance to bail out of the equity markets on a plateau before the ground opens beneath them.  If it would happen to find some traction and inflate wages, the result would be increased government revenues.  It will not find traction, of course; it will simply shoot up the price of commodities, of food and transportation, and, by devaluing savings, become a huge tax on those with the foresight to live within their means. 

I may be slightly too conspiratorial here. I am usually more cautious in assigning motives.  However, the result is likely to be the same whatever the motives of the OWS stooges might be.  They will end up helping the sector they claim to be protesting.  Meanwhile, the decent, moral, honest, and honorable folks paying the bills and doing the right things are fixing to get hosed. 

In the end, so will the stooges.   

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