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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