This country is getting dumber by the second. Recent events, including last weeks perilous drop of over 1000 points in the Dow, point to a coming crash again. As nothing has been done to fix the problems, bubbles are forming back in the stock market, derivatives and gold. The Dow is rising way to fast for its own good. As no one seems to know why last week's drop happened, here are some ideas.
First, there was no fat finger as was previously noted. No one used a b instead of a m when writing out reports. This was readily apparent to anyone who looked as accused culprit Citibank only did 6 billion in trades all day, a low number and in no way capable of a billion dollar mistake. So what happened? Market Manipulation is possible. Betting against these funds using derivatives is an exceedingly dangerous prospect. Someone with billions could effectively crash the market and reap a fortune beating against it. It's the equivalent of someone burning down their house and their neighbors and collecting insurance in both. As intrinsic interest does not lie with making these bets, they should be made illegal. It is possible that someone bet against P and G whose stocks tumbled by 50% in minutes last week and reaped a fortune off of derivatives as a result. As these trades have never been made public, we really don't have any way of knowing.
The other possible outcome is outside influence. Cyber terrorism is hot right now as you can crash a system half a world away and not leave your living room. Regular attacks are being done by China, North Korea and the Middle East on American interests on a daily basis. Our preparation is not good enough , experts have warned. If someone did hack into the system, a stock market crash would be a possibility. Unknown to most, the stock market is almost completely controlled by computers now. A hacker could reap havoc upon such a system. Perhaps last week that's what happened. If it did, the government would never tell us as it would create a panic within our financial markets that could ultimately destroy us economically. If no one thought their money was safe, they take it out en mass like an old Depression era run on the banks. The effects would be catastrophic.
So where does that leave us? Screwed as usual. The stock market is a fixed casino where all but the wealthiest are using a stacked deck. You and I a destined to lose to protect the losses from those above us. Who in their right mind would walk into a casino where there was a 100% chance of loss? No one. Yet we do it everyday in the stock market. Smart money is In CD's or ING accounts, both of which pay a guaranteed 5% rate.
Notice the tea party isn't screaming about any of this. Why? Because the tea party is the lunatic fringe of the R party. Their frustrations are real , but they are going about it the wrong way. The way to fix things isn't by electing more conservative Repubs. It's by electing people with no party affiliation or RELIGIOUS BELIEFS. The cow towing to the Christian right has to stop for the good for all mankind. I'm tired of people like Rev. Reeker, a noted anti-gay activist, who was caught with a male hooker. The hypocracy must end and we must fix what is broken. Will it happen? Probably not. But we must try for the good of everyone. So for the next election remember, none of the above should be your vote. Otherwise, get ready to wear that swastika really proud, dem or rep, the next time you do.