Wednesday, June 3, 2020

In Stocks We Trust

Pandemic with resulting high unemployment, disease, war, fanaticism, environmental degradation threatening mankind's future, looting, rioting, poverty.... None matters as far as the stock market is concerned. Money keeps pouring into it. The federal reserve, government and the corporations and interests that control the economy and government ensure that the stock market is the only game in town.

At this point, the government might as well just outright buy stock. They have done everything else  to keep markets inflated.

Two thirds of the American economy is driven by consumers. Consumers are hurting, with unemployment high and small companies going out of business. The main driving force of the American economy is not propping up the stock market, but still the market euphorically goes higher.

Big drivers of the market, such as certain social media companies, basically produce nothing and are little more than advertising companies with a social media presence. They help the euphoria that is not rooted in reality.

One analyst said that a certain company's decline was the market actually getting it right about the company. The analyst said that the company burns through cash daily and therefore is worth less each passing day. True to form, the negative news from the analyst came out on a day when the stock was already hard hit. In the days and weeks that followed, the company's stock dramatically rose, proving once again never follow the singular financial advice of anyone. On bad days, bad news comes out. On good days, the news is upbeat and even euphoric. Financial news is often about appealing to reader sentiment.

Speculation runs rampant. On the New York stock exchange casino, an insignificant company was treated as a world shaking giant, heavily traded days ago as gamblers nimbly made their bets

One day a price will be paid for inflating stocks, making them the only game in town, letting the environment fall apart, nuclear weapons spread, war, corruption and hatred grow, while blindly believing in stocks we trust.


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