Tag Archives: how is the stock market rigged?

The Stock Market is Rigged

I just want to go on record as saying the stock market is rigged. Since I don’t have a job, I am free to tell the truth. When the crash comes, the art of not knowing will be called into service by all who could possibly be held accountable. At any other time in history, rigging such a huge market would be impossible. It is possible to day and it is ongoing.

Dismiss this if you wish but I encourage you to wake up and think about what is going on. You might say “I have no money in the stock market, so why should I care?” My answer to you is that a stock market crash, which is coming will cost you everything you own because it will literally destroy the whole economy. The stock market’s rigging changes the way corporations function and it changes the way corporate insiders get paid. You have heard complaints that corporate officers are overpaid. Their salaries are not even a fraction of the money they make. The big money comes from running the price of their stocks into the stratosphere independently of earnings and and economic issues.The easy money is made by running up stock prices, so who needs to innovate.

This one thing is the biggest cash cow in the history of the world. In twenty years or so, this kind of thing might be explained in text books of economic history. Whether you realize it or not, the money is all coming out of the public’s pockets.

The rigging of the stock market has its roots when the Reagan administration first tampered with the financial markets. There is no conspiracy. It is a wink and nod system. Others wonder at the bizarre trading dynamics they see day after. Hedge fund managers who use trading tools that evolved out of observing free markets go broke and commit suicide. Hardly a soul will admit to being played for a sucker.

In the current era, goosing the stock market is the highest priority of government policy. It will and has destroyed the economy. The only thing keeping the entire economy afloat is the stock market itself. The tail can wag the dog for only so long, Virtually all of any growth in consumer spending since 2008 has come from driving up asset prices. Right now, the American economy is like a boxer who has taken a hard shot to the liver. For a short while, he continues to box but faints and falls to the canvass due to too little oxygen to the brain.

So, when will the stock market crash? It can happen anytime because the damage to the economy is so great that all of the tricks in the world are not enough to keep it afloat.

Chances are, somebody well respected will come out and say something like “Who are we kidding, the stock market is rigged, get out now while you have a chance.”

Will Trump Rig the Stock Market?

In 1987 the Reagan administration began managing the securities markets. Since that time, to varying degrees politicians on both sides of the isle have supported programs to enhance asset prices. Both monetary and fiscal policy have been used since that time for that very purpose. There have been no exceptions. Easy money has had only one purpose and that is to further enrich politically powerful constituents and investors.

Beginning in 2006 efforts changed from simply enhancing stock prices to completely preventing any loss of value. In 2008 asset prices declined in the face of unprecedented preventative efforts.

From 2008 through the present, all government efforts have centered around saving the stock market and elevating asset prices and goosing profit margins. Although they have no idea how or why it has happened, the poor and middle class have been devastated financially by the process.

All increases in corporate profits and GDP are rooted in spending by the super wealthy who are the only group to benefit from the rigging process.

When the stock market declines, the economy will drop into a very serious depression which will make the Great Depression of the 30s look pale. Will Trump rig the stock market?

The stock market is already being rigged. A better question is, will Trump interrupt the process? I would guess not. Trump will do everything possible to continue goosing asset process at least until the second year of his presidency. The Trump tax cut and spending plans are very much a way of passing the rigging baton to congress and taking pressure off the very tired Federal Reserve.

It may not be possible. Reality can impose itself on the world at any time, without warning and without anyone’s permission. Trump’s personal case will be better served by accommodating Wall Street. That is what he will do.

The public is still clueless as to how these things work. In this case, Trump has nothing to do lose by continuing to funnel wealth and income to the upper 1%. People know they have been burned, but are still clueless as to the source of their suffering. Suffering does activate the thinking process but it can take a long time.

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

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