Sunday, 8 June 2008

The irrational market story and market manipulations at play

I think that under the current market conditions pretty much only intra-day trading (without keeping positions overnight) can generate you some consistent money. The alternative to trading would be to stay in cash and wait. The seemingly illogical phase continues, with the markets being manupulated big time by the governments, government agencies and agents, and big institutional players. Once again, the Thurday and Friday market responses reflected in the price of oil showed that very little rational, fair-market behavior is present at this time.

Since when should the garbage words of the Israeli TRANSPORTATION minister about the "inevitable bombing of Iran" deserve any attention? Since when do we not know that the US dollar is going to be a garbage currency over the next several years? We know that this is the case, so why pretend one day that the US dollar has some strength left and will rally and on the other day dump it on the EU CB Head's minor comments? Why believe some bubble-head analysts who seriously tell you the fairy tale that global physical oil demand is currently above global physical oil supply? Why believe analyst prostitutes from the financial services industry who tell you that the oil should be priced at 150, 200, or 400 dollars while at the same time their companies and masters play the commodity and derivative markets to profit off crowd responses to such announcements? Why do the markets believe nonsense unemployment statistics from the US government? The non-farm payrolls did not fall by 49K in May 2008, in reality they most likely fell at least by 200,000-250,000 once you take into account the ridiculous side adjustments, like the birth-death stats loophole. Boy, what a mess in the markets, the US public sector, and the US financial sector.

What is the solution to this mess? First, the feeding of the shameless bankers with easy money should be stopped and rigid controls of the financial sector and of the derivative and commodity markets should be introduced. Second, the private bank named the US Fed should be kicked out and its functions transferred to the Treasury. Third, Paulson should be fired and probably put on trial, along with the other Fed, Treasury, and US administration executives for the economic crimes that they engineered and implemented. The icon Fed head named Greenspan deserves to sit on the front-row bench as a part of this group. Fourth, the US money printing press should be stopped (figuratively speaking of course since most money is created electronically nowadays). Fifth, the oil Texas boy should not be the US president, as the US and global oil interests should not be in control of the US administration. Until he is there and until the US administration shamelessly acts in the interests of the big oil players, oil prices will stay high and market and statistical manipulations will continue. This is a direct example of the moral hazard story at play here.

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