Thursday, August 16, 2007

The stock market plunges, the powers that be light another cigar

When the stock market still drops like a stone days after the fed jams $17 billion into the banking system, what does it mean? Countrywide, the largest mortgage lender in the nation, was the trigger for this latest plunge after they announced they are pulling money from their $11 billion credit line just to fund operations. I’m not an international businessman but even I know that taking loans to keep the day to day operations of your business going is a horrible sign.

Once the dust settles on this mortgage situation a very small number of people are going to be in the most prime position ever seen to scarf up a huge amount of real estate. Homeowners are still falling further and further in their payments. Credit card interest rates are doubling because of the state of the market. Once those homeowners who are barely making it start paying those higher credit card rates, even they will begin to fall behind in house payments and the number of homes in foreclosure will jump again. Worsening the cycle with each twist and turn.

A very select few are going to wind up on the money making side of this catastrophe, the vast majority of us are going to be burned and the gap between the richest and poorest keeps widening. Can the middle class even afford to buy and keep a home in this day and age? The answer is no, the middle class cannot and the middle class loses even more ground and power in the process. Who benefits? The powers that be benefit.

Last night I had MSNBC’s Hardball on while I was making my dinner. I heard a talking head say the most stupid and bullshit thing I have heard on there for quite some time. The subject was the Chinese goods scandal and this pro-business “Reaganite” had the gumption to say that if Americans didn’t want to buy toys and products from China, stop shopping at Wal-Mart. Matthews, like a lap dog, didn’t jump on this stupid comment.

We cannot find goods that are not made in China. There are so-called “specialty” products that are not made in China, but we are talking about boutique level products. They are neither priced nor available in numbers for mass consumption. The jobs that were on American soil even a decade ago to manufacture clothes, toys, household goods, etc… are no longer here. The globalists wanted these jobs sent to China for the slave wages and maximized profit margins. The fall out, lead based paint, shoddy construction and toxic substances, are part of the end result.

This, the Chinese scandals and the widening credit debacle, are exactly what the PTB have wanted to happen. Power and money is consolidated into their hands and out of ours.


David said...

I was listening to an evening report last night talking about how Sept. is a seasonally low time in the stock market. It’s been shown before and I bet is a common practice for major firms and mutual fund holders to cause the market to drop while they buy in with their own pocket books killing the common man in the process. I saw a video once on how the rich profit from the stock market when it drops. Overtime the common man got caught up in the market and even started barrowing money to buy additional stock. Eventually debt caught up with them and then and big money could not save the fear of men and as result we had the great stock market crash and depression. I tend to agree that if society doesn’t change its spending habit that were heading towards a downward spiral.

The CT blogger said...

Many thanks for your insightful comments, David. I completely agree with you that if society does not change it's spending habits, on both a personal level and the institutional level, bad things will be in store for us. My worry is that the downward spiral ends with a vertical drop and a hard surface below.

I hope you will come back and comment again, David. Best of luck to you and peace.