Friday, September 19, 2008

The Smoke And Mirrors Stock Market Recovery

George Bush And The Wall Street Financial Crash

In order to take the bad news of the Economy out of the news, the Bush Administration took the aggressive steps of announcing a 2 Trillion Dollar Bailout of the Banking Industry that has been preying on the American People since the start of this Republican Administration. This Administration has allowed Banks free reign on fees, charges, over limit fees, and account fees, yet they are still broke after muti-million dollar salaries were taken by the Republican Executives that run the Banking Industry.

After the announcement Wall Street Had a major rally in response to the news that the Government will insure that no bankers will loose their multi-million dollar salaries, the People through the Federal Reserve will guarantee that the Bankers will not have to sell their mansions, cook their own food or wash their own clothes.

When George H.W. Bush was running against Ronald Reagan for the Republican Presidential Nomination he recognized that the Economic Agenda of Reagan was full of "smoke and mirrors", Mr. Bush went so far as to call the Reagan Policies "voodoo economics". Of Course he had to eat those words when he became the Vice Presidential Nominee, but truer words have never been spoken by Mr. Bush.

The Bailout plan announced by the Republican Administration of George "Hoover" Bush is also a plan of smoke and mirrors. After the massive rally of Friday the news reports changed from, "we are on the verge of a depression" to "look at the rally" on Wall Street. Along with the Bailout plan announcement the Republican Bush Administration put in place rules (yes the Republicans who are so against regulations, enacted regulations) that short selling can not occur on certain equities. If short selling can not occur, that means that any one who had an open short sale would have to cover that position and buy the equity, so as the short sellers rushed to cover their positions it caused a massive rally on the stock market. It does not mean that anything fundamentally had changed from the day before, it just means that these traders now see their short positions as a definite loser. If the Street is prohibited from short selling it has the effect on insuring that the equity prices will not fall, it is protecting against a downward spiral, and the forced covering of open positions caused a rally. It is the classic case of Economic Smoke and Mirrors.

Yes they are blowing smoke in your face while they show you the mirrors, meanwhile they are behind the mirror taking care of their assets while yours are stripped away.

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