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I didn't hear about yesterday's Big Dow plunge at the Wall Street Dog Track until late last evening. Just after 2PM yesterday, the Dow dropped 980 points. The market recovered after the plunge, somewhat, and the Dow wound up down 347 points for the day.
What's interesting to me is that none of the Very Serious Financial Experts can explain why the drop occurred. This morning there are a few discussions about a shadowy "glitch" as the source of the drop.....others are placing the blame on automatic computer program buying.....others blame Wall Street reform....while still others blame the huge oil slick in the gulf.
But few blame the video images yesterday on the teevee where banks in Greece were set on fire by protesters of Greece's announcement of new deep cuts in pensions, basic government services, and a proposed increase in taxes.
Yesterday, Digby caught this exchange on MSNBC...
MSNBC anchor: Is what we're seeing here (huge Dow drop) a preview of what we're seeing in Greece?
Ratigan: Yes. What you have is a corrupt government rigging the game for special interests ... the banking industry being the most obvious right now where we subsidize the TBTF banks. And when that is done where the government comes out and says, Alex, "we're going to have an austerity measure for you and we're going to raise taxes on you," and the people say, "hang on a moment, the government is corrupt and rigging the game for special interests, has given all this money away to bankers and is now turning its attention back to the American people --- basically to say they're going to cut our social security in order to pay for the banks."
That's the sort of thing that gets people pretty upset.
I don't know if Greece's problems are what caused the radical drop in the American stock market yesterday. When everyone is simply gambling, it's very difficult to figure out why stuff happens.....you know, the fear and greed endorphins kick in when they kick in.
What I do know is that whenever a precipitous drop occurs at the Dog Track.....a handful of folks make a boatload of money...and, really, isn't that the whole point of the Wall Street Casino?
As we've learned from the Big Bankster caper, Wall Street doesn't produce anything for the nation. Recessions, perhaps,....but nothing of value, nothing tangible. What happens on Wall Street should be understood as wealth, or asset, redistribution. Far right wingers would be much further ahead to direct their redistribution rhetoric, often pointed at "commie liberals", towards New York stock exchanges
Yesterday's Dow drop is a huge case in point. As the market was dropping so radically yesterday....and again as it rebounded a short time later....trillions of dollars were redistributed. Nothing was produced, no investments made.....yet IRA's, 401K's and pension funds indexed to the stock market are smaller this morning than they were yesterday morning. While the accounts of slickster schemers, like Fabulous Fab, are fatter this morning than they were yesterday morning.
Poker games redistribute money. Wall Street redistributes money. As the market plunged yesterday, seasoned poker players shorted (bet a stock would drop in value) everthing in sight with reckless abandon.....making huge sums of money very quickly. When the market bottomed and reversed course yesterday afternoon, those same short betters cashed out their shorts and bet long (bet a stock would increase in value)......redistributing even more chips to themselves from the other poker players chip stacks.
In a previous incarnation, I watched (online) a trader make $38,000 shorting 1000 shares of Barr Laboratories stock.....in less than three minutes. Was anything produced? Were there any investments made? Did America benefit somehow? Don't be silly.
It happens each and every day in the "market." Poker playing. Redistributing...NOT PRODUCING....value. It's just that some poker game days are better for the career gamblers...than others.
The question today is: Why is it necessary for America to base it's entire financial system on gambling? Does that seem reasonable to you?
UPDATE: Reuters is reporting that....just maybe...the Big Dow Drop had something to do with all the new computerized Poker Game technology today's Wall Street gamblers are using.
Also, this....."Investment shops like Goldman Sachs compete to place their trading computers as close as physically possible to stock-exchange computers to make trades an instant faster."
That is what Very Serious Professionals refer to as "the investment industry."
UPDATE 2: Bad day at the Dog Track...again. Dow is collapsing right now....down 270 at 10:30AM.
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