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I argue that price/profit manipulation of stocks are a large part of what’s driving crises issues.  Those manipulations are not created by the average investor, who doesn’t hold enough financial power to cause huge shifts, but by wealthier investors, who do.  Hope and marketable shifts in public attitudes are talked up by brokers and media shows to create investment in stocks which then rise.  Then comes a manufactured “crises” which will, predictably, cause uncertainty.  The wealthy investors, who filled their portfolios at lower prices, now sell those shares and the average investors, who were only able to buy as the stock was rising, are put on an unavoidably losing trajectory.  At best one can only hope to tread water by having bought a valuable stock early enough that it’s basic price can’t fall much lower than what it was purchased for.  That can only be done by choosing established companies with high budgets that are integral to societal needs.
So the Fiscal Cliff “crises” is an obvious con by wealthy investors designed to take invested 401K money away from workers and put it back into the Plutocrat’s pockets.  It’s a shell game which workers are basically forced into playing by the creation of 401K matches heralded as “raises in pay.”  Even investing all 401K money in Market Funds is not safe as those can become playable if Stock Funds are insufficient to cover sell-offs.  That means the Plutocrats who run the companies can’t lose while the worker can’t win.
It is VERY IMPORTANT to see these politically manufactured market “crisisses” for what they are; expedient tools for creating uncertainty which provides the trigger for market manipulation and subsequent recapitalization of Plutocrat’s funds.  One way to stop it is demand for legislation that ties an employer’s pay-raise DIRECTLY to our pay, not our 401K’s, and retirement accounts that actually reward funding.  I would argue that profit sharing should also be mandated as a way to achieve fair and integrated pay-raises with company success.  This is basically what CEO’s are getting but without the necessity for the company to be successful (I'm looking at you, Hostess).  

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Comment Preferences

  •  Tip Jar (9+ / 0-)

    "When you think about the money spent/on defense by the government/& the weapons of destruction we've built/we're so sure that we need/then you think of the millions that money could feed/How long?" J Browne

    by rainmanjr on Sat Dec 29, 2012 at 12:50:45 PM PST

  •  Gosh. NT. (1+ / 0-)
    Recommended by:
    Einsteinia
  •  Fake as Boehner's tan (5+ / 0-)

    This IS a manufactured crisis.  The middle class lost their 401ks, equity in their homes, and now their Social Security is going to be about is relevant as the "minimum wage," on which no one can support a family.  

    Let's go off the cliff and cut the Pentagon budget, keep the CPI tied to Social Security, and then in the first week of the new Congress:  restore unemployment benefits and and retroactively restore the middle class tax breaks.

    This is what the middle class who voted for the democratic agenda deserve--and nothing less!

    Separation of Church and State AND Corporation

    by Einsteinia on Sat Dec 29, 2012 at 01:13:22 PM PST

  •  you aren't wrong (1+ / 0-)
    Recommended by:
    rainmanjr

    you can look at the percentage of institutional investors in any one stock (or whatever) and clearly if they want to keep the share price stable, they can make some small purchases. There isn't the heavy trading of the pre-bush-market-collapse, which is why the exchanges are merging to make the problem you highlight even harder to change.

    Those guys also thought Mitt would win (most of them bet on Mitt, as we know based on where they donated), and they were very wrong, which would make anyone wonder how bright they actually could be.  

    But in the end greed wins out, so, up or down, they want up and that means getting regular investors to buy in. They want congress to cut a deal too.  They're not as powerful as they'd thought?    

    "oh no, not four more years of hope and change?" Karl Christian Rove

    by anna shane on Sat Dec 29, 2012 at 01:14:53 PM PST

    •  I don't believe they are...currently. (1+ / 0-)
      Recommended by:
      anna shane

      Thanks.  We got lucky and, with help from immigrants and younger generations, twice voted for a Pres who is mostly on our side.  He can't hold off the wealthy alone, though, and I'm hoping he gets more help in this term.  But, if the Plutocracy were as powerful as they thought, we would have lost this last election.  Our standoff won't last forever, though.

      "When you think about the money spent/on defense by the government/& the weapons of destruction we've built/we're so sure that we need/then you think of the millions that money could feed/How long?" J Browne

      by rainmanjr on Sun Dec 30, 2012 at 01:18:22 AM PST

      [ Parent ]

  •  There is no law that requires employers (0+ / 0-)

    to give raises, at all.

  •  Huh? (3+ / 0-)

    While the crisis is no doubt manufactured, your explanation is far off base.

    Markets these days are broken. About 70% of all stock trading (or more) is done by high frequency trading (machines that trade in microseconds). Most of these algos will only hold stocks for very short periods, often less than a second - no long term investors here - and many of the major traders during the day go home flat (not long or short) or totally out.

    The ones making money these days are the parasitic HFT algos who add nothing to the system, yet just try to bleed it for their own gain. Of course the SEC does not seem to give a crap, as usual.

    The small investor has left the market and is not coming back.

    Even the hedge funds are leaving the market and shutting down.

    The stock market is now broken, ruined by HFT and zero interest rates (Interest rates are the price of money that is supposed to be a market signal - that signal no longer exists in a working form).

    The market as it stands is now being kept afloat by a tide of money printing ... that is it. Ben & co. are doing everything in their power to try to create a wealth effect ... with less and less success.

    There is no real way out. Cliff or no cliff, the die has been cast. They are printing money, looking for inflation, and hoping to hell they will be able to control it once it finally comes and gets out of control (which they won't be able to do). It is inflation that will rob the small and the big alike. The fiscal cliff/debt ceiling sideshows re barely even that. they are, in the bigger scheme of things, all but irrelevant.

    There's room at the top they're telling you still But first you must learn how to smile as you kill If you want to be like the folks on the hill

    by taonow on Sat Dec 29, 2012 at 01:29:15 PM PST

    •  A 0.5% transaction tax (6+ / 0-)

      on all equity trades would cure, well, about 99.5% of what ails the stock market.

      Restoring the statutory separation of commercial and investment banking (and limiting the FDIC to deposit insurance (with a million dollar limit)) would fix the banks.

      Ending the "securitization" game would fix real estate.

      Regulating "derivatives" ("swaps") like insurance (with the requisite reserves) or gambling would take care of the rest of Wall Street.

      All easy.  All opposed by the vampire squid . . .

      Fake Left, Drive Right . . . not my idea of a Democrat . . .

      by Deward Hastings on Sat Dec 29, 2012 at 03:37:07 PM PST

      [ Parent ]

      •  a transaction tax, and make MERS totally illegal. (2+ / 0-)
        Recommended by:
        taonow, rainmanjr

        They knew from the start MERS was wrong, and they just counted on people not being in a position to do anything about it by the time it got discovered. Too big a crime to fail.

      •  Interesting response. (0+ / 0-)

        I'm in favor of all your suggested fixes but also think employee compensation needs to get better protection.

        "When you think about the money spent/on defense by the government/& the weapons of destruction we've built/we're so sure that we need/then you think of the millions that money could feed/How long?" J Browne

        by rainmanjr on Sun Dec 30, 2012 at 01:25:22 AM PST

        [ Parent ]

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