The elite investing media views you, the common man, as a chump. They fool the ordinary man for two terrible reasons; first, you are competition to them, and if used properly you can become a tool for them to make even more money; second, because many of these elitist frauds feel it is patriotic to talk up the stock market even when they know you're likely to lose your money.
Right now there are many various ponzi schemes and other types of schemes perpetrated by Secretary Geitner and others. Most of which never gets reported on the elitist news. The biggest ponzi scheme I've ever heard of isn't Madoff's, but rather Geitner's banking plans where our taxpayer loans to the banks are being paid back to us through our own money. This is done through purposeful government overpricing & overpurchasing of bad assets as well as free money given to banks which then get loaned out to the common man at a much higher markup rate. In the end, this gives the illusion that the banks look like they are making money when they aren't.
I wish I heard about these kinds of stories in the media. The sad fact of the matter is that I hear more people lying on CNBC than probably any other network. It's one thing to be ignorant and to be wrong, but often on these investment news channels it's more about lying to people, frequently talking up the market and making money off of stupid viewers that don't know when to buy and sell, what fundamentals are happening and why, etc..
For example, just the other day I watched an episode of Jim Cramer on CNBC. For background I will tell you the market had gone up big that day, April 9th 2009, because Wells Fargo Bank (WFC) had pre-announced its extremely good quarter. Of course, everyone on Wall Street already knew this was going to happen weeks/months in advance. How many of you knew about this though? Even after it happened how many of you knew the real reason why it happend?
So you ask me, how was I so sure WFC and bank stocks were going to skyrocket weeks or months before they pre-released this earnings season? How did I know that everyone knew, except for the common man? It's very simple as everyone else knows, if you markup your assets on your balance sheet WAY above what those assets are worth with Mark-to-Model, your balance sheet will look impressive overnight. Not to mention other schemes on their balance sheet as well, which I won't go into. Everyone on Wall Street knew this was going to happen and all they needed were the chumps on mainstreet to come in and help take that stock up. And the reason why I say chumps is because in the end when these stocks likely fall in price later all of these professionals will have gotten out of the stock and it will be the ordinary man that will be stuck in the stock. The common man likely will have bought high and at a poorly evaluated price. Through no fault of his/her own, except lack of "detailed" research and a misguided belief in banks/business's balance sheets.
Anyways back to Jim Cramer, a very bright person in the know on CNBC news. When he came on television that night I was expecting him to tell some kind of half truth to partially keep people in the dark, but rather he just flat out lied to everyone. The lie he made was that WFC and the other banks went up because of one glorious reason, the housing market has bottomed! Wow!! The housing market has bottomed! I laughed for like 20 minutes after that comment. Jim Cramer himself doesn't even believe what he's feeding his audience. But he wants and expects you to believe it, the common man. First, I already explained in the paragraph above why the banks stock price went up drastically higher. No one educated on the subject will argue that reason. Second, the housing market hasn't bottomed. It's far from it. The housing market must fall at least another 10% at a MINIMUM to just get back to the historical average of housing prices. And don't forget there will probably be an overcorrection. 1
Look I'm not here to bash on just one person. Frankly I'm an equal opportunity offender and I wish I had the time to bash on all of those that deceive you. The point I'm trying to make is that many of the people on stations like CNBC don't know what they are talking about at times, but also "much" of the time these people are completely lying to you. And it happens more often than you think. Further there is a lot of important information like the problems in Iceland, that these investment stations will keep off the air that would help you explain why things are moving the way they are.
In the end I hope this helps the average man to understand some of the treacheries that exist out there in this market and in the elite media. And I wish the best of luck to all investing during this Depression.
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Ps: Watching a show like Jim Cramer's Mad Money can be useful, but you must be able to figure out when he's giving you good information, misunderstood information, or if he's just flat out lying to you. This can be very hard for many people to do.
1 Meridith Whitney whom everyone, including Cramer, touts as the expert on the subject believes housing prices will infact overcorrect, going down another 20%. I agree with her analysis of an overcorrection (although my severity is greater) as it's both normal and healthy and I would stipulate that this is a 20%+ price drop in real purchasing power. Also I would add that if brainless governmental economic policies continue for long then the real wage will have to decrease in real value, which then means the housing price must compensate downward further to get to a new, even lower, proper housing price.
Edit: Corrected some numbers which CNBC misreported on April 6th, Whitney interview.
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