Common Sense Commentary: Common sense and fundamentals in the stock markets of the world are out the window. No more is there honest discovery of a stock's true value. No more Free Enterprise foundation. No more natural rise and fall of markets. As banks were previously determined to be too big to let fail, so now the stock markets themselves are deemed to be too big to let fail and are being propped up by government manipulation. It is no longer possible for the retail investor, using solid rock valuations, free market trends, fundamentals and other due diligence to beat the market. Computer generated algorithms and High Frequency Trading platforms, plus the absence of CFTC and SEC enforcement of trading rules make it impossible for anybody but the billionaires and high tech crooks to profit trading the markets. This is not just my opinion. The corpse is pushing the lid open. RB
God demanded of people buying, selling and trading in the market place that they use only accurate and true trading practices without deception, misleading information, manipulation of the balances, scales, weights and measures of trades. Violation of honest trading practices tends to shorten the lives of those who cheat for gain. "....Thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened...." Deut.25:15. RB
All the markets in the U.S. are now manipulated by both the government, the Federal Reserve and the largest traders. RB
This from DollarCollapse.com
Now The Markets Themselves Are Too Big To Fail
AUGUST 7, 2016
The First Rebuttal website has coined a term that gets to the heart of an increasingly dysfunctional system: The too-big-to-fail stock market. The general thesis is that most major countries are over-leveraged to that point of maybe being unable to survive a garden variety equities bear market – and are doing whatever it takes to keep that from happening. Here’s First Rebuttal on the effects of such a prop-up-asset-prices-at-any-cost policy:
The structural economic problems of stalled incomes, peaked debt and welfare make operational expansion i.e. sustainable growth extremely difficult, which has led to investment concentration in secondary equity markets. And that means the higher valuations simply represent higher risks.
The offshoot is that as such a large concentration of total asset value is dependent on the market, it becomes necessary to maintain the market at all costs. The market has become too systemically important to allow it to fail. And that means policymakers have changed the function of the market. The market left to its own devices is a consequence of the underlying economy. Today, however, the market is being used as a (false) portrayal of the underlying economy. It is intentionally using the logical fallacy of confusing cause and effect.
That is, the thermostat is no longer meant to reflect the temperature inside the house, its only use is to convince you the house is warm. That means policies are being targeted at manipulating the thermostat rather than keeping the furnace hot. The consequence is a spiraling of resource misallocation, furthering the structural breakdown of economic activity making it ever more important to keep the market looking strong. The market is no longer a market as we understand the term.
The upshot: Markets no longer serve their intended purpose of efficiently allocating capital. Since capitalist wealth creation depends on functioning markets, today’s world can no longer be called “free” or “market-based” in any meaningful sense.
The article illustrates this phase change with a chart showing equity P/E ratios over the past century-and-a-half which reveals a dramatic spike beginning in the 1990s – that is, when Alan Greenspan and his successors at the Fed decided that the big banks had to be protected from the consequences of their own mistakes.
So what does this mean? First, while headlines continue to convey a sense of normality, under the surface the system is rotting away. Good jobs are becoming scarce and capital is being directed towards things that will never generate enough cash flow to pay off the related debt. Rising financial asset prices are increasingly disconnected from the falling value of underlying assets.
The evidence of this is everywhere, from pension plans that lie about their funding levels, to corporations that report “adjusted” non-GAAP earnings and are rewarded with higher share prices, to governments that report plunging unemployment rates while citizens leave the workforce in droves.
It’s no longer possible, in short, for most people to tell what’s real and what’s not. And since markets’ main function is to reveal underlying truths, it’s not a surprise that governments have decided to hijack the message. End of article.
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The Law of Sowing and Reaping:
"...Whatsoever a man soweth, that shall he also reap." Gal.6:7.
Jesus taught it in Matt. 25:14-27.
Here is Jesus' "righteous" plan for investing your money, life or spiritual gifts to the best possible gain, benefit or harvest. Jesus would not have used an evil or flawed example to illustrate a spiritual truth. This parable about investing is akin to the law of sowing and reaping, whether it be money, spiritual gifts or life.....
For the kingdom of heaven is as a man travelling into a far country, who called his own servants, and delivered unto them his goods.
And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. (Each of us has a different level of ability in various talents).
Then he that had received the five talents went and traded with the same, and made them other five talents.
And likewise he that had received two, he also gained other two.
But he that had received one went and digged in the earth, and hid his lord's money.
After a long time the lord of those servants cometh, and reckoneth with them. (Second Coming of our Lord).
And so he that had received five talents came and brought other five talents, saying, Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talents more.
His lord said unto him, Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord.
He also that had received two talents came and said, Lord, thou deliveredst unto me two talents: behold, I have gained two other talents beside them.
His lord said unto him, Well done, good and faithful servant; thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord.
Then he which had received the one talent came and said, Lord, I knew thee that thou art an hard man, reaping where thou hast not sown, and gathering where thou hast not strawed: (Accused his Master of Capitalism)
And I was afraid, and went and hid thy talent in the earth: lo, there thou hast that is thine.
His lord answered and said unto him, Thou wicked and slothful servant, thou knewest that I reap where I sowed not, and gather where I have not strawed: ( His Master Confirmed he was a Capitalist)
Thou oughtest therefore to have put my money to the exchangers (interest), and then at my coming I should have received mine own with usury (Interest). Matt. 25:14-27.
So, for heavens's sake, stop criticizing, out of jealousy, people who work for their income and invest it wisely for gain, profit or return. The same goes for jealous criticism of those who invest their spiritual gifts or lives for spiritual increase. Each of us has talents and spiritual gifts differing from those of others. Use your gifts, talents and time to the best advantage... wisely, for the Lord who loaned them to you. RB
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