STOCK MARKET WATCH -- Tuesday, 29 May 2012

[Demeter]

60. The thing is, Nancy

The "market" is an artificial and highly rigged and hourly manipulated abstraction. It NEVER reflects the reality of the underlying economy. Since EVERYBODY lives in the underlying economy, that is the ball to watch.

If the underlying economy (and the government that watches over, regulates, or otherwise imposes conditions upon it) is sound, the markets are sound and reflect reality. They function as they ought....raising capital for corporate ventures.

But the economy hasn't been sound for a long time. Depending on whom you ask, it went into the toilet when:

The Federal Reserve abducted the money-printing
FDR took us off the goldstandard temporarily
Nixon took us off it permanently

But in reality, the economy has never really recovered from the credit bubble that led to 1929. We were held together for some 60 years by the regulations that came out of 1929 and the Pecora commission, but when the "faith healers" in office ripped off those bandages, we started bleeding to death.