Wednesday, September 07, 2005
Bushco officially makes US a socialist nation
Government Intervention in Stock Market
That is, socialism:
A major Canadian financial management firm that a year ago published a compilation of evidence of central bank manipulation of the gold price has just done the same in regard to the U.S. stock market and has reached a similar conclusion. ...But, the Sprott report notes, frequent surreptitious intervention, conducted through intermediaries, the government's favored financial houses in New York, gives those intermediaries enormous advantages over ordinary investors. Frequent intervention, the Sprott report adds also makes it impossible to distinguish between national emergencies and political expediency....It is time that market participants, the media and, most of all, the government acknowledge what should be blatantly obvious to anyone who reviews the public record on the matter: These markets have been interfered with on numerous occasions. Our primary concern is that what apparently started as a stopgap measure may have morphed into a serious moral hazard situation, with market manipulation an endemic feature of the U.S. stock market.
It's pretty obvious that disinvestment is the only logical thing to do. A country that is rapidly running up unpayable bills to keep the stock market propped up? It's pretty obviously a bubble waiting to pop.
Moral hazard?
No. An investment hazard.
More blogs about politics.
