Master Liars

As a resource for the novice investor this blog should more than give you information the major media wont, but I should alert you to their tricks as well. The mission of this blog is to alert novice investors and the general public to the reality that the stock market, being more than a few bad apples is a Mafia whose sole purpose is to bleed you dry to the last red cent. The conduit for the transfer of your wealth to the Street elites is the stock market, the simple tools used to facilitate the transfer are the interest rate and Madison avenue packaged lies. Pile onto that a bunch of complex sounding high powered economic BS, the major media co conspirators and you get a full blown abomination. Here is a classic from Allan Greenspan in the fall of 1996. With the DOW over 6000 Al coined the famous phrase ‘’irrational exuberance ‘’. This is what mouth piece Al says of it now.

In his 2007 autobiography, The Age of Turbulence: Adventures in a New World, he talks at some length about his suspicions in the 1990s that there was irrational exuberance in the stock market. But in the end, he says, he just couldn't figure it out: ''I'd come to realize that we'd never be able to identify irrational exuberance with certainty, much less act on it, until after the fact.''

That lovely piece of Pravda comes by way of Mr. Robert J. Shiller of Ohio.com. in a piece entitled Even the experts missed the housing bubble. Bull!

This is what was really going on. As Al was blowing up the dot.com bubble knowing full well what would happen when it popped, he cast his grand fatherly scorn at you and me and blamed us for the bubble he just created. Latter the FED chief raised interest six times in a row to bring the dot com crashing down on millions of pension funds and retail investors (you and me). And poor uncle Al cannot ''identify irrational exuberance with certainty''. What an excellent example of the often used incompetence or it’s just too complicated lie. I will mention that your kids wouldn't get this one over on you, but the media fall hook line and sinker for it.

Were all these people stupid? It can't be. We have to consider the possibility that perfectly rational people can get caught up in a bubble. In this connection, it is helpful to refer to an important bit of economic theory about herd behavior.

Three economists, Sushil Bikhchandani, David Hirshleifer and Ivo Welch, in a classic 1992 article, defined what they call ''information cascades'' that can lead people into serious error. They found that these cascades can affect even perfectly rational people and cause bubblelike phenomena. Why? Ultimately, people sometimes need to rely on the judgment of others, and therein lies the problem. The theory provides a framework for understanding the real estate turbulence we are now observing.

See that the experts can explain it all. They couldn't help it. I have a better explanation, THEY ARE LIARS!

These people are not stupid or the kind who get caught up in anything. Rather they are cold calculating criminals who set the trap with easy money and wait for the masses to get caught in the hype. The boom and bust cycle not only can be avoided with 100% accuracy, the FED actually have to manufacture them with interest rate gyrations. Then they hide behind high powered economic gibberish and FED speak, then blame it on ''information cascades'' and the irrational public. Yea that's good for city folk Al, but I know the cat by the paw.

This is the same old MO at work as in the 1930s the dot bust and the housing bubble pop. First the FED dope pushers drop interest rates to near zero, delivering an enticing initial fix of credit crack. Then with business and the public hooked on the ponzi financing after-effects they cut you off by raising rates again. Over extended on the high of cheap money, but with suddenly no credit available the credit addicted economy crashes, bankrupts, defaults and ultimately is forced to sell the business factories homes and land back to the bank for pennies on the dollar. And of course the FED is Godfather to all US banks.

Novice investors should know that there was no money is lost when bubbles pop, wealth is simply transferred from the masses to the elites. Did you notice how men like Morgan, Kennedy and Rockefeller, just happened to be in cash and out of the stock market before on black Tuesday? Did you know that Joe Kennedy was actually short the market on that day? And so it was that Goldman Sachs partners were shorting the subprime sector through all of 2007 while they invested client money long in subprime.

Goldman with nerves of steel made no secret of its success in its Q3 report of Sept. 20th:

"Net revenues in [trading] mortgages were...significantly higher, despite continued deterioration in the market environment. Significant losses on non-prime loans and securities were more than offset by gains on short mortgage positions."

So, the Goldman Gangster made a killing in the summer of 2007 by selling subprime mortgage-backed bonds short, the bonds that they had just been long in their client portfolio.

These experts didn't miss the housing bubble they made it. No one is saying that it was illegal, bi it Kida shoots that imperfect information theory in the foot doesn't it?