Crooks, Computers, and the Coming Crash

www.kitco.com...

Very interesting opinion article from Graham Summers, a senior market strategist and investment advisor. There are a number of claims he makes which certainly ring true to me concerning what a smoke & mirrors job the idea this economy has turned the corner really is based on.

As stocks continued to rally into September, one has to ask one’s self, “just who’s buying this rally?”

The answer?

Computers and no one else.

I’ve written extensively about the computer trading programs that are dominating this market. All told, High Frequency Trading Programs HFTPs control 70% of trading volume on the NYSE.

However, at this point, five stocks (yes only five) account for 40% of the trading volume on the market. Those five stocks: Citigroup, CIT Group, Fannie Mae, Freddie Mac, and AIG. Think about that, five stocks out of several thousand, are accounting for 40% of ALL trading.

Please take the time to read his entire offering... it's very educational and pretty damn disturbing/anger inducing. Our system is beyond help and sooner or later they're going to be forced to pull the plug for the life support and we're screwed. Unfortunately, they've managed to ensure that even after the loved one dies, they've been held on support long enough to ensure any true recovery will include all of us being crushed under debts incurred trying to prop everything up.

I appreciate this article Burdman. There's been a lot of talk about this and it's good to see a plausible explanation.

One thing I don't undertahnd, is he talks about throwing lots of money at the problem and that being the cause of seeing the uptick in the market.

I came a ccross a graph earlier that shows the trillions that we are on the hook for and a confusing point for me was that there is almost THREE BILLION in line for various financial markets, but they don't show that they have paid any of that OUT yet...I just don't get it.

Is the assertion that the infusion of money into the market by the government is just the tip of the iceberg? What I mean is...if they have alloted close to three trillion and are not 'on record' as having paid any of that out yet, do you think that the three trillion is going to be an accurate number for what the gov. will spend on bailing out financial firms and diddling the market?

reply to post by KSPigpen


I think it is purely a transparent safety net, KS. Overall, I have seen the figure topping $25 Trillion that the tax payer is on the line for should the banking system outright fail. That figure covers less transparent insurances our "leaders" have given behind closed doors to the banksters telling them "Do whatever you want, we're insuring you won't suffer the effects of losses from your actions."

The 3 Trillion is only the amount Washington has deemed We the People are worthy of knowing about.

I expect it will be used/spent/stolen from us somehow regardless. Possibly in the next wave of recession that is looming on the horizon or down the road when the banks start reporting some real figures and we see how insolvent many of them are (how can you be insolvent when you hold trillions of dollars? I'd love to know that one!) either way, that money will disappear and we (taxpayers) will be left holding a bill for it somehow.