The New American Loser Society
Now in American Business, you are a winner to Wall Street if you are a Loser.....as long as Wall Street can sell SWAPs against your debt. The MORE you lose, the higher the value of your swaps and the more banks can make by selling them. Who cares about the stock.....why should Wall Street care about a $10 Trillion dollar stock market when they can sell HUNDREDS of Trillions of dollars of SWAPs to our pension funds and cash in with unprecedented profits.
But in order to conceal the profits, all you have to do is write down trillions of defaulting debt and dump them on the taxpayer through the TARP and TALF programs. It is a great way to rob America of its wealth and have America subsidize the theft at the same time.
But if you are going to steal from the sheeple in broad daylight, you have to give them a bit of medication to soothe the pain. Welcome to High Frequency Trading where most of the volume on the Stock Market are a few colacated computers trading back and forth to each other manipulating the market and reaping massive profits for the firms that own those computers.
The problem comes in if you are a "legitimate" business that actually has to earn money to support your business and those that work for you, or a municipalitiy or state government that depends on tax receipts from those businesses and citizens and MUST balance your budget...you are screwed as there is no one to back stop you.
Even though trillions in debt is defaulting, the reported PE of the S&P is now over 140, millions of businesses and families are going bankrupt, our cities are being forced to shut down, pension funds are running out of money due to the manipulation of SWAPS......the citizens are cheering on the losses as Obama has inherited the most difficult business climate to ever confront an American President.
If Obama keeps spending trillions that does not exist, soon America will be accused of counterfeiting by the worlds central bankers and our currency will decay into worthless paper. Or he will have to tell America we are out of money and contront decades of reckless borrowing.....most of which was incurred in the last eight years due to the creation and Fed support of Credit Default Swaps.
It is amazing how Wall Street now rewards losing as a means to enrich itself through SWAPS. Unfortunately, our citizens, private businesses, and municipalities are failing as a consequence. Few understand the relationship at this point, but as the decay continues, tens of millions will feel the effects of the Zombulator and the Zombulation policies.
It is not too hard to see where this is heading.....just wait until your pension fund manager tells you how low your pension has become as America's pensions are handing over your retirement to Wall Steet bankers. You still think this is a joke? Just go ask Jefferson County, AL officials what happened to its government as a result of BIG losses on SWAPS....or ask shopping center owners what is happening to their tenants.
What an irony, the nation that was founded on the principals of rewarding hard work, innovation and winning.....has now morphed into a society where bankers profited from infecting our nation with a debt load it can never repay under the current policies.
Prepare.......9.09 is getting closer.
Once you understand the relationship between credit default swaps and the destruction of the American economy, you will undertand Alstrynomics.