Falling Knife: Collective Panic In Markets Due To Trading Stocks Using Loans

Every stock market crash has the same thing in common: too much debt infiltrates a system and then stock traders who should be buying their stocks based on PROFITS instead bid up the price of stocks by using DEBT which they hope will pay off the debt when the stocks shoot upwards.  As each other pursues the same game, the markets overheat as they are trading with EACH OTHER and then when any group of stocks fall for any reason at all, all the traders using debts who now outnumber the sane traders, panic and sell frantically so they can close their debts and break even.

 

Example of crazy trading game strategies that kill markets eventually every time:  How To Buy & Trade A Penny Stock Before It Triples & Make $25,000 in 5 Days.

 

This had been fixed repeatedly in the past only to see it fall to the wayside when banks and other lenders circumvent the rules in various nifty ways and end up lending to traders who get crazier and crazier bidding up stocks, giddy at all the ‘free money’ they will collect while paying little in debt charges.  Even the slightest breath of a problem causes this to destroy the market which is why regulators must control the level of debt traders use but the only way to do this is…raise interest rates on them which the Fed didn’t do this time around because…THE FED WANTED A HOT STOCK MARKET!

 

This all goes under ‘duh’!  It is most annoying to see this happen since it is fairly obvious it will happen and people all know this but the ‘clever’ guys think they can pre-empt this by selling off ‘early’ but this sell off early scheme is what is the trigger for the raptor traders on the floor and they immediately react.  All a nice muddle.

 

My ex-husband once made his living working the floor of the Wall Street exchange and after the market fell on everyone back in 1973, he went off to shipping instead considering it a much safer, reliable business.  He was not a hysteric.  The hysterics that gather on the Floor and I used to watch them since I went to Wall Street for lunch with my husband, was amusing.  It was all quite irrational back then and still is today.

 

What is causing this mess this time around?  FEAR.  As FDR said famously and correctly, we must not fear, fear itself.  But these crashes have consequences and world wars are quite connected to stock crashes war in general is connected to causing these, too.  The seventies crash was connected to winding down the Vietnam War which boosted stocks attached to the war spending efforts and restricting this money caused panic.  In today’s case, Muslim radicals spurred on by insane CIA plots against RUSSIA back in the 1980’s have created a monster that is ripping apart all oil exporting Muslim nations.

 

Israel and the US want these nations utterly wrecked except this means SALES to these nations collapse after crazy Muslim radicals take over and wreck everything in a wild jihad to turn back the clock to the Dark Ages again and they are amazingly successful.  Attacks in Afghanistan, Syria, Iraq, Saudi Arabia, Yemen, Libya, Egypt, etc. are causing chaos and deaths and destroying entire cities and causing waves of refugees and more jihadists to move into Christian Europe where the outcome is obvious: chaos and destruction.

 

Paris has been basically wrecked thoroughly this last month thanks to the bombings and machine gunning down people in the heart of the city.  Tourism, a major money maker, has collapsed.  Germany stupidly let in over a million angry Muslim males who have spread over northern Europe and now are raping and looting the populations there to the point, all the EU nations are rapidly closing borders and putting up barbed wire fences to keep the mobs at bay.  The EU was never a really functional entity, too much history of violent, hideous warfare, no common language imposed aside from English and the English refused to integrate entirely so now in England, seeing the smoking ruins of the destruction of sovereignty in the EU, voters might vote to move entirely out of the EU and I am not surprised by this at all.

 

I have lived and traveled heavily in Europe and mastered German to the point when I was arrested after making a speech about East Germany on the border of Czechoslovakia, when I tried to convince them I was an American, one cop said, ‘Sprict Englisch, bitte,’ and I couldn’t do it without a heavy German accent which made me laugh hysterically and so I was arrested.  HAHAHA.  Anyways, the point is, Europe’s leaders hate the English domination and therefore refused to use English when passing laws, they mainly did this in German and French who HATE each other’s guts, I was very amused by this years ago.  Well, horrified, actually.

 

I was traveling at one point with a former Nazi tank officer who was now a professor and we crossed into Lorraine and he asked for directions.  The farmer who was French figured out who he was in the past and insulted him in French and my travel companion said in German that he might come back in his previous vehicle and this is how close, 20 years after WWII, the two countries really were: miles apart and for good reason!

 

History never sleeps.  She may be lazy some times but her quill is dipped in blood and she laughs hysterically as she writes the Chronicles of Humanity.  We never, ever learn really from past mistakes.  We, perhaps, love repeating mistakes since this feels ‘NORMAL’.  And perchance, it is normal for the apes who created stone weapons and immediately went forth to kill.  Prehistoric tribe of men, children and pregnant women were bound in Kenya which clearly shows that killing other tribes is normal for humans.

 

From this morning’s news, Pakistan attacks: Scared to send their kids to school and Satellite pictures suggest oldest Christian monastery in Iraq razed to ground shows that this war against modern society continues apace.  Meanwhile, China, Egypt sign financing deals worth at least $1.7 bln as the Chinese, despite market chaos, plow forwards relentlessly.  In Japan, a S Korean re-arrested in Japan after Yasukuni shrine blast after he was found with a pipe bomb in the toilet area there again yesterday.  The wounds of WWII still are very much alive, note how the Japanese rulers snarl and snap about a very innocent statue with no text attached to it, parked in South Korea in front of the Japanese embassy there!  The fury of the Japanese nationalists is red hot at Nazi levels right now and are hotter than ever after this news.

 

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12 Comments

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12 responses to “Falling Knife: Collective Panic In Markets Due To Trading Stocks Using Loans

  1. hans

    Satellite pictures suggest oldest Christian monastery in Iraq razed to ground

    Pity everybody forgets that the US army had already trashed the site of the monastery in 2003. Painted graffiti with the logo of the 101st Airborne all over the ancient murals.

  2. Jim R

    Stawks are declining, because they were already maxed out (with all the real growth, and financial fraud, mostly in housing, that they could stand) BEFORE the declines of 2008, and it has been an amazing experience to watch, as they went up and up on freshly printed money, and promises of MOAR freshly printed money. Nothing in the fraud markets was ever actually fixed. None of the top level criminals was ever prosecuted. Not one. Back in the ’30s, the Roosevelt administration rounded ’em up some of ’em and jailed ’em.

    Last month, Janet Yellen announced a 0.0000025% increase in interest rates, reminding all the financial weasels that there might actually come a time when the Fed expects some payback on all this debt-money.

    And these facts are finally beginning to be known by all the various participants in the finance “industry”, down to holders of IRAs and 401Ks. Therefore, a selloff. Technical indicators say that we are due for a little bounce about now, so we may have a few green days on the tickers. But the decline is far, far, from over.

  3. Jim R

    And, speaking of monuments from old conflicts,

  4. Petruchio

    “As each other pursues the same game, the markets overheat as they are trading with EACH OTHER…” It is usually at this point in time, When the bought-and-paid-for financial press will start telling their (gullible) viewers, “Now is the time to invest in the Stock Market. Take advantage of this upswing in Stock prices before it is too late.” These “ho’s” of the financial media will often couch this tidbit of “golden” advice in reports on how the economy is improving. Sometimes they will include optimistic (!!) “news” about unemployment going up. I only watch about 30 seconds of Jim Cramer when I am channel surfing, but I imagine Jimbo is touting the wonders of buying stocks NOW. Cramer was telling his viewers that banks like Lehman Brothers were healthy–right before Lehman was sold for pennies on the dollar.

  5. tio

    I am, and will remain, very pro-european, but the EU? It is a veritable cesspit only surpassed in this regard by its primary sponsor.

    Nazgûl fear ‘Brexit’ may be deathknell for EU
    http://www.telegraph.co.uk/finance/financetopics/davos/12113163/Davos-leaders-fear-Brexit-may-be-deathknell-for-EU.html

    Conservative Party Political Broadcast

    Who is Luring the Middle Eastern Refugees Into Germany
    http://www.informationclearinghouse.info/article43998.htm

    Calais migrants given green light to use European human rights laws to come to Britain
    http://www.telegraph.co.uk/news/worldnews/europe/eu/12111494/Syrian-migrants-in-Calais-win-green-light-to-come-to-Britain.html

    Nobody knows where the shit show of 2016 is leading
    http://kunstler.com/clusterfuck-nation/worse-than-1860/

    When America fails, so will Washington’s vassal states
    http://www.paulcraigroberts.org/2016/01/18/the-21st-century-an-era-of-fraud-paul-craig-roberts/

    amen.

  6. Jim R

    See, I said we were due for a bounce. …

    The stock market, as it is currently configured, is little different than bitcoin.

    By which I mean to say, your little donations to the casino do not result in companies going out and building railroads, mining diamonds, nor paving streets and developing neighborhoods. That stuff is all done. In the past.

    So, your money is just chasing other money around, in an endless discussion of how much some abstract ‘share’ of a ‘company’ is worth.

  7. Lee

    Jim, when the Dow indicated USAs economic ‘mood’, the price of a stock may have indicted something other than gambling.
    Now there is high frequency trading, so forget any take on ‘stocks’ other than gambling.

  8. Christian W

    I see some speculation that the price of oil might go into negative (not just Dakota fracking) in the near future. Negative oil prices, negative rates… I do wonder how long the inverted reality bubble will last.

  9. Christian W

    I see the good residents of Flint, Michigan, have been asked to pay their overdue “water” bills for the Toxic Waste the local authorities served them.

    Yay, laissez faire capitalism.

  10. Nani

    Keep warm and safe in the blizzard EMS🙂

  11. Lee

    Christian W-have you ever visited a city or town ruined by Blacks? take a tour— from the Paris of the West to a somali like sh– hole—-http://www.detroityes.com/fabulous-ruins-of-detroit/index.php

  12. emsnews

    Detroit was destroyed deliberately by our RULERS. They vacated it. They did the ‘free trade’ thing and America was flooded with Asian cars.

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