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Idiocy drives the market these days

Well I wanted to write something what I think about this market and investors who are selling and asking questions later, but at this point I am so disgusted that I lost my appetite. When yesterday SPY dropped and erased all gains from Monday because of French banks, my first though was “who cares?”.

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When I read professor Stiglitz explanation on our (US) financial or monetary policy it made sense. Our banks under the Obama Administration policy of “too big to fail” (which I have opposed strongly from the day one) did nothing to clear their investing and make their monetary transactions more transparent. They still hold and invest into European bonds secured via CDS and no one knows what they really have in their balance sheets. So if French banks fail, this idiots in our banks will have a hard time once again.

So not only our bankers got us into a credit mess at the first time, they still continue the same procedures they did to continue the mess. So the selling might be by those stupids from our banks who probably know what they did recently. Well, we need to wait until this mess clears and the sky get bright again.

We might be bottoming at this point. The market stopped on a support level at 112 level (SPY; $SPX at 1120). Will this level hold? I do not know and I bet on it at this point. However, even though I believe we will see some rally (this oversold level we are in now is not sustainable), but all investors who bought on high levels few weeks ago will want to get out (to break even), so the rally will be short lived. We are in a bear market, so I am expecting a rebound to 118 level, in better case scenario to 123 and then we will most likely go back down.

2 responses to “Idiocy drives the market these days”

  1. George says:

    Tell me about it. This market is totally crazy! It will be a nice bang when it bursts.

  2. Mario says:

    I see a lot of people are confusing the government with Wall Street. Wall Street has purchased our government – mostly the Republicans because they love the system and are in agreement with Wall Streets values – but they own both parties – yes even the tea party Republicans – the system has been set up so that candidates can’t get elected without Wall Street.

    Wall Street is never satisfied, they want your Medicare dollars, Social Security dollars, your 401K until there is nothing left – it is all consuming.

    They are counting on the stupidity of Americans to keep choosing R’s of D’s to bicker against each other and name call while they steal the rug out from underneath you but until we wake up – if we ever do – we will be responsible for our own demise.

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