Banks and Brokers bank big bucks as Little People get Played - Again!

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Once again it was the individual investor excluded from the buy and sell and buy action that sent shock waves through the financial markets today, because once again the computers took over the stock markets with programmed selling forcing the market into an unexpected correction and creating a mountain of opportunities for the computers to profit in any recovery.

By now, most informed people know the American stock markets serve no public interest, fail to do what they were intended to do, and act to feed their wealthy owners even more wealth.  It is a vicious cycle begun in earnest with the last major stock market crash in 2009, and it operates at a level of legal, but immoral corruption that the Obama administration has never fixed.

It was back in 2008 I warned that Goldman Sachs owned candidate Obama much like they owned President Clinton when he needed millions of dollars to pay his legal fees during his impeachment.

Once he got elected Goldman people were placed throughout Obama's administration and controlled all fiscal policy of the government.  As it became clear billions of dollars were going to be lost only the two major banks who supported Obama in 2008 received virtually all the money they had at risk, an amount totaling billions of dollars, Goldman Sachs and J.P. Morgan.

Here we are, seven years since the economic crash that cost consumers trillions of dollars in wealth and not a single banker behind the economic manipulation was prosecuted, or wound up in prison.. This is the same pattern they perfected with the Clintons by providing millions for Bill's legal defense fund to save him from impeachment, then arranging for hundreds of thousands of dollars in speaking fees, and helping his rather mysterious Clinton Foundation.

Hillary is the most recent recipient of the Goldman purse strings as Bill and Hillary have now received over $23 million in speaking fees.

Well Goldman and Morgan will no doubt benefit from the stock market crash, what the pros call a correction, since some of those massive computers are theirs.  In the meantime, the average person in America will lose 10% more of their wealth while the bank boys make 10% more on their manipulations.

Once upon a time such practices landed executives in jail but no more under the Obama administration.  Perhaps one day, people will realize that it really does not matter whether a politician is a conservative or liberal, Democrat or Republican, they are all owned by the rich and only the rich and their political stooges are getting richer.

After the collapse this week the market is down 10% and the professional economists blame it on China, North Korea, excess oil inventories, the wavering of the Fed on cutting interest rates, and the instability in Europe because of Greece.  None is true.

The market will rise when the rich can make money and will fall when they stop making money.  They sell when the market peaks and buy after the collapse, all with the help of their monster computers.

If they still do not make money, they bring new companies into the market through public offerings, known as IPOs.  Of course they really do not want them to succeed so they buy up all the stock before the first public offering, then sell it to the stupid public the first day it is available to buy when the price is being driven up.  Once the stock rises, they lose interest and so far this year 38 IPOs have gone bankrupt, which cost the little people untold millions or billions of dollars.

I guess there is a reason our founding fathers did not trust big banks, international banks, or even capitalism.  Maybe our current leaders should pay attention to history, not just their campaign fund raising efforts.

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Russia and China Save Obama Presidential Legacy with Iran Nuclear Votes

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Thank you President  Xi Jinping of China and President Vladimir V. Putin of Russia

How bizarre is the news?  After years of negotiating with Iran over nuclear weapons by the Obama administration, at the eleventh-hour the breakthrough came and the world first heard about approval of a treaty between Iran and the United States, and the UK, and Germany, and France, and the European Union, and who did you say?

In the end, it was the vote of Russia and China, equal partners in the negotiations, who gave life to the treaty and hope to the people of Iran, who have lived under the yoke of sanctions for years.  President Xi Jinping of China and President Vladimir V. Putin of Russia saved the day for Obama.

 

Funny, you do not hear much about how Russia and China made the Obama treaty possible.  I did not hear Obama and Kerry thanking the two semi-bad boys for making possible perhaps the greatest peace development in the Middle East.

Last year I wrote an article calling for an end to sanctions against Iran, Cuba, and Russia, on the grounds the sanctions did not work.  So far, actions by the Obama administration are ending them in Cuba and Iran.

The wisdom and effectiveness of the lifting of sanctions will take years to determine but the initial hope it has given to the Iranian people is gratifying.  The people of Iran believe they have been set free and that is a good side benefit.

Which brings up another question, why is it the Iranian people were the only people in the world celebrating this new treaty?  They refer to it as "freedom."  Perhaps the significance of the treaty goes way beyond nuclear bombs, and it will open the gate toward improved relations with the people of Iran.

I say give the treaty a try, things cannot get worse with Iran.  At the same time, Obama needs to start mending fences with other friends and allies like Israel, Russia, and China.  Stop blaming them for everything bad and try working toward something good.

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The Facebook IPO - A Billionaires Delight and Forbearer of the Next Internet Stock Collapse

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The culmination of greed in America

Tomorrow the boys of Facebook become billionaires as they cash out just before millions of new stockholders are left holding another Internet stock that lost half it's value.

Make no mistake, the billions to be made over a 48 hour period will be the last profits from the Internet for years to come because there is no business model for pure and simple greed.  This IPO and every other Internet company surviving on revenue from Internet advertising will crash because the truth slipped out of the bag too early.

Yes, the speculators who control the IPO and have purchased all the offering before the public even had access to it, will simply let the value increase since the IPO was over subscribed and that means fewer shares are available for purchase.  In a day or two they will sell into the market, take their billions of cash and walk away.

GM created a huge potential problem for the IPO when it announced just a couple of days before the IPO release that it was stopping all Internet advertising on Facebook and everyone else because after spending billions of dollars on Internet ads over the past few years because the ads have no impact on consumers.

For years the Coltons Point Times has warned of the foundation of quicksand when it comes to valuing Internet stocks and advertising revenues.  In fact a year before the last Dot.com bust in 2000 we published a column outlining why the market was about to collapse.

For those who don't remember, it has now been twelve years since the dot com bubble began to seriously deflate.  The financial climax had its high water mark on March 10, 2000 when the NASDAQ peaked at 5132.52.

The subsequent stock market crash caused the loss of $5 trillion in the market value of companies from March 2000 to October 2002, and those parts of the world which were the epicenters of the dot com boom, such as the San Francisco Bay Area, were plunged into a financial nuclear winter.

More than a decade later we still haven't learned.  Facebook is going public with over 97% of their revenue from Internet ads, ads General Motors, the largest car company in the world, says are worthless.  American's and foreigners driven by greed will purchase the stock, not from Facebook but from the financial institutions who already bought  stock before the people had a chance.

Now that's fair President Obama, our first president to embrace the Internet speculators as economic wonders not to mention huge financial contributors to the President's reelection campaign.  You don't suppose Obama has some of that Facebook stock do you?

There is no financial basis to say Facebook is bigger than Exxon, Proctor & Gamble or GM when the sole basis for revenue is advertising which recent polls indicate 83% of Facebook users never click on.  The other 17% say they occasionally click on one if it is of interest.

Don't be surprised if another five trillion dollars is lost and that most of it comes from Internet stocks, or should I say stockholders.  Of course the Internet executives will cash out starting tomorrow leaving you holding the bag.

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