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IDS World Markets Wed 30th September 09


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Yeah - the markets are a completely diseased organism - a machine that is in one of two states:

- Fast Forward

- Breakdown

 

The markets are screwed up beyond belief. There are no "investors" in them anymore - just indexed computerized arbitrage programs that run 24/7 - good luck wid dat.

 

 

The real losers have yet to recognize this.

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From a purely political viewpoint having askyrocketing stock market is only going to enrage the majority of the population - who by and large dont own much in the way of stocks- at a time when they are jobless and hurting. Just reinforces the increasingly popular view that the govt only cares about the rich.

Then there is the risk that having the market run up sky high with no support in the way of earnings and a heathy economy only raises the risk of a severe crash. That will certainly not be viewed as a positive either by the majority of the population.

So - it seems to me it is not in the govts interest to keep goosing the market up.

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