Monday, September 15, 2008

The Plunge Protection Team in Action

And the comparison to 1929...

Elaine Supkis:

Here is the Nikkei at 9pm EDST:


In just one hour, a fall of over 500 points! Wow. Here is the US stock markets today:


Due to interference of the Plunge Protection Team, it took all day to fall the same rate as Japan. This whole business utterly echoes the Great Depression's cycles. Here is a graph that shows clearly how the bubble/bust cycle operates:


Just like back then, once the bubble pops, the actions of the bankers and the government as well as the bell-weather buffoons at the Federal Reserve created this jagged graph. Note all the red lines I added: these were 'rescue operations'. Each one came after a set period of time. About six months apart. Each infusion of new money and new deals would cause the markets to shoot upwards but never to the previous highs. Each high is lower than the previous one. This gives all graphs of recessions and depressions the same graphic lines downwards. Once it hits bottom, it can crawl there for a long time. Assuming all bottoms=bull markets is foolish.

This is because the see-saw decline decimates both bears and bulls. The people with money to speculate with are fewer and fewer and more cautious each cycle. We see the warning flags of this caution in government bond markets. This is the 'rush to safety'. Only in this case, there is no safety since the governments themselves, especially Japan, England and the US, are heading towards bankruptcy. The Japanese do have lots and lots of bonds from the US and England but this simply makes them more vulnerable. For Japan is carrying a huge government debt just like the US and England. The three G7 nations owe collectively almost $30 trillion. This is a lot of money.

Again, this is just a tiny part of a long long article explaing in the ongoing financial catastrophe in terms of Greek Gods. Very entertaining and ghastly.

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