August 1, 2012
Gummint Things Up
This is my second essay on banks involved in trading, possibly being influenced by the government.
Tuesday, the government was in the stock market, again. Yes, it ought to be illegal, but there is a
technicality that allows it. Some trading companies are also banks who need the favor of government, in order to
stay afloat. They stay afloat by receiving cheap money from the Fed who uses our tax money. And they use some of
that tax money to buy stocks for their portfolios. What happens to the market when they buy stocks? The market
goes up.
I have never seen Bigfoot. I have never seen a ghost or a UFO. But I have met an honest politician.
Jim DeMint is one. And knowing Jim, and the abuse that he receives for living by his principles, I can vouch for the
fact that they are very rare in the circles of real power. Most turn out like Jim Clyburn, who rides the lightning and
will some day wind up being electrocuted by it. Others, like Ben Bernanke, run into the Peter Principle, and wind up
being the pawns of the very powerful and very ruthless.
Not all bankers are bad. Not even most. Many, however, are self-deluding pitiable creatures, who
pray that people will not find out what a real fraud their bank is. They are the ones who believe that paper has the same
validity as things with real value, like diamonds or silver or oil. They are the ones who will "help" the market by moving
it upward, trying to make the administration look good - fruitless endeavor. Sometimes it works. Sometimes it fails Look
at any chart of the market volume for Tuesday and you will see their handiwork, moving the market up, only to have smart
people sell into the rise.
Soon, a real sell-off will cause these "helpers" another billion dollar loss which "just can't be explained,
except as bad decisions on our part," they'll grouse. I'm not even going to try to explain what happened to
the so-called chinese curtain that's supposed to exist between the trading section and the banking section so that
one can't influence the other. It's all legal, and it doesn't matter that it's unethical.
This story went online at 10:45pm Tuesday night. Today we get a "glitch" from a company that
moves millions of shares of stock a day, serves eight of the ten biggest banks, and makes a market in over 680 different
stocks. The SEC is investigating. Fox Business is reporting that there is a rumor the FBI is beginning to ask questions.
(click here to read last month's Pokes
and Prods -
use browser back button to return)
(click here to
go to the all articles archives)
- Dick Anderson.

©2012 - 2014
SwampFoxNews.com