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Five Facts You Need to Know About the Financial System
Let’s connect the dots on the ENTIRE financial system right now.
Fact #1: Banks are Insolvent.
All of the above are facts that have been staring us in the face for well over six months, if not a year. If you suspected that something was “strange” about the market, you’re absolutely right, it’s that our entire financial system is based on fraud, lies, and BS.
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Fact #1: Banks are Insolvent.
The only reason they’re still in business is because they are permitted to value their balance sheet at whatever price they choose. I could privately value my car at $500 TRILLION, but that doesn’t mean I’ll get that price for it when it comes time to sell.
Ditto for the banks and their garbage saturated balance sheets.
Fact #2: Countries are InsolventDitto for the banks and their garbage saturated balance sheets.
Europe, a union of broke countries, recently announced it is bailing itself out. This is a bit like your bankrupt friend announcing he is gifting himself $1 million: it DOESN’T SOLVE ANYTHING. As I’ve stated time and again, you CANNOT solve a debt problem by issuing more debt.
Fact #3: Wall Street is CrookedAnyone who even wants to debate this can look at Goldman Sachs’ latest trading results: Goldie made money EVERY SINGLE DAY of last quarter. As if that wasn’t statistically impossible enough, the firm pulled in $100 million+ on 35 out of 63 days. This simply cannot be done ethically. The only way your trading is that good is because you’re cheating (front-running your clients or manipulating the market).
Fact #4: The Central Bankers Cannot “SAVE” AnythingThe world’s central bankers are clueless about fixing the debt problems (see Europe). If a private business employed the same tactics as Ben Bernanke and pals, it would be bankrupt. Leaving a paperweight on the “print” button is not a policy. Neither is buying garbage debt (something of NO value) at 100 cents on the dollar. Indeed, there’s a word for someone willing to the latter action; it’s “sucker.”
Fact #5: The Stock Market is Controlled by ComputersThe stock market has rallied courtesy of outright manipulation and fraud. Bailout Ben’s money didn’t go to Mom and Pop America, it went to Wall Street where they gunned the stock market higher on next to no volume using algorithmic computer programs to front-run their clients (see Goldman above).
So markets today are not moving based on real investors, they are moving based on computers that trade back and forth in nanoseconds if not faster. These programs were created to reap a ¼ penny profit for each transaction the make (a policy the NYSE created to induce investors to continue trading and provide “liquidity”). However, as last Wednesday showed, when things start to get ugly all these “liquidity providers” seem to vanish in a hurry.
What It All Adds Up ToSo markets today are not moving based on real investors, they are moving based on computers that trade back and forth in nanoseconds if not faster. These programs were created to reap a ¼ penny profit for each transaction the make (a policy the NYSE created to induce investors to continue trading and provide “liquidity”). However, as last Wednesday showed, when things start to get ugly all these “liquidity providers” seem to vanish in a hurry.
All of the above are facts that have been staring us in the face for well over six months, if not a year. If you suspected that something was “strange” about the market, you’re absolutely right, it’s that our entire financial system is based on fraud, lies, and BS.
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