Monday, December 01, 2008

Hillary Clinton Tapped for SecState; DOW Drops 700 Points

And no, one has little or nothing to do with the other.

But it’s interesting that in the last go-around of cabinet appointments we had five consecutive days of colossal rises in the stock market, 1,276 points in total, this time when President-Elect Barack Obama announced his security team headed by Hillary Clinton as Secretary of State-Designate, the DOW drops nearly 700 points.

It’s as if saying that physical security and financial security have nothing to do with each other, which is preposterous. If that were the case, the huge drop in stock prices in the days after 9/11 should have actually been a few good days at Wall Street.

No, I have a theory.

The theory goes that the stock market is still being manipulated by short sellers.

Here is my reasoning. Everyone who has been paying even the slightest attention to what is going on knows that we are in a big economic fix, a fix that was engineered by over-zealous free marketers who deregulated the market to almost pre-1929 levels. Everyone knows that we are in for what is euphemistically termed a “deep recession.”

So when confirming news hit the streets today that the United States’ economy is officially in recession and that the recession will be around for some time to come should have been met with a collective ho-hum.

Instead it unleashed a selling frenzy that drove stocks back down to roughly 600 points above the lows where they sat last week, undoing half of the gains that resulted from the Obama financial appointments euphoria.

So, it’s either this or that. It’s either the fact that our stock market is being driven by a bunch of ignorant nincompoops who react wildly to news that has been common knowledge since September, or the fact that our stock market is being manipulated by short selling brokers who take advantage of any bad news at all, surprise bad news or yesterday’s news, it makes no difference, and rake in huge profits in selling stocks short, driving down prices and effectively creating tomorrow’s bargains. Bargains that they will make huge profits when they buy them back at low low prices.

Someone is making lots and lots of money here.

It just isn’t anyone I know.

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