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Varchild2008 (84.67)

Why Won't the U.S. Stock Market PLUMMET BIG!?

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February 25, 2010 – Comments (8)

Why Won't the U.S. Stock Market PLUMMET BIG!?

Answer:  The U.S. Stock Market is the U.S. Savings Account.

What common theme does Alstry mention over and over on his CAPS blog if you pay attention to Alstry?  It is that the Government + Banks control the nation's $$$$$.

Welllllll.......  If that's going on in the minds of Americans since the 2008 Bank Bailout schemes what do you think is going on in people's savings accounts at banks???

It's simple....  People are pulling cash out of their BANKS and stuffing it into the U.S. Stock Market....  There..... If Government and Government's bank bailouts are the culprit.... And no one feels safe leaving their cash in Banks.... They pour it into the U.S. Stock Market...

What about unemployment?  Shouldn't that damage the U.S. Stock Market?  

WRONG!!!!

The amount one gets from a Unemployment Check + heavy reductions in spending  is indeed enough money to stuff a portion of those checks into the U.S. Stock Market.

Look at it this way:

FOOD STAMPS + UNEMPLOYMENT CHECKS +  WIC + CHILD TAX CREDITS  + WELFARE = $32,000 per year.

At $32,000 per year of receiving every bit of Government Assistance you can most certainly invest a portion of the Government Assistance money and still get by raising your small family.

Believe it or not.......  The Stock Market's "Plunge Protection Team" exists..... They are the SCARED and ANGRY  American Public that is out of work and the only game in town is the U.S. Stock Market.

The Stock Market is becoming America's only employer..... unless you have a Government job.




8 Comments – Post Your Own

#1) On February 25, 2010 at 8:35 PM, truthisntstupid (94.07) wrote:

What, I'm the first to rec? 

Anyway bingo!   Didn't everybody know this already?  But you're the first one I've seen say it.  It isn't that I don't trust banks, though... Nobody should keep any money in them till they start paying up for the privelege of holding our money again!  Tie up $1,000 for a year for $10 in interest?   BS!!! That $1,000 will get you a $15 or $16 quarterly dividend!  Screw banks!!!

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#2) On February 25, 2010 at 9:03 PM, russiangambit (29.45) wrote:

OK, somehow I have hard time envisioning this. And unemployed union worker  sitting at his PC and daytrading. In fact, there were a number of studies showing that majority of retail money went to bonds and the big players in the equities are investment banks and hedge funds.

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#3) On February 25, 2010 at 10:55 PM, starbucks4ever (98.98) wrote:

There are hypotheses that are hard to refute but even harder to take seriously...

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#4) On February 25, 2010 at 11:34 PM, truthisntstupid (94.07) wrote:

I think a lot of people are probably smart enough to seek more from their savings than a bank will give them.  Am I giving people too much credit?

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#5) On February 26, 2010 at 7:30 AM, cthomas1017 (72.98) wrote:

not hard to refute, but so full of holes that it's not even worth the time to try.

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#6) On February 26, 2010 at 7:41 AM, islandcleaners (< 20) wrote:

The problem is that it never should have become a savings account. Investment account..yes. But not savings.

http://yieldpig.blogspot.com/

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#7) On February 26, 2010 at 4:10 PM, Varchild2008 (84.67) wrote:

"big players in the equities are investment banks and hedge funds"

Only because you are expecting the unemployed population to compete with Banks that for 2 years were able to borrow cash from the Government for FREE and stuff it into the Market.

Sorry... But saying that Hedge Funds + Banks make up the bigger portion of investment pie..

That's not enough of an argument here to say that unemployed people aren't investing dollars into the market.

Sure some are not... some are soooooo poor and unemployed they simply can not....

But many others are thinking about DIVIDEND payments as a *JOB* they actually get paid for while they sit unemployed looking for a real job.  And seeing your money sitting doing basically nothing in the bank versus DIVIDEND payments..

How long as it bend that CHASE and CITIGROUP and BAC have had below .5% interest on savings accounts???

At those APY numbers big banks have held....for quite a long time... why on EARTH do you think my hypothesis here is wrong????   You can get 4% and even much higher than that out of Stock Market Dividends versus what.... .5% or less?

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#8) On February 26, 2010 at 4:18 PM, truthisntstupid (94.07) wrote:

I'll be damned if I'll keep much of MY money in the bank....

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