Stock Market Ponzi Scheme

[NorwichGrad]

The stock market and main street economy are two separate entities. But many are led to believe the stock market defines the real economy.

Hopefully many are waking up to the fact that the stock market is nothing but a ponzi scheme.

Last week 3.3 million Americans filed for unemployment, and the stock market that day rose. Did that make sense to any of you?

Now, 6.6 more Americans filed for unemployment.

The best performing stock markets in the world belong to Venezuela (where everyone is a millionaire but people eat zoo animals) and Zimbabwe (where everyone is a billionaire but nothing to eat), thanks to hyperinflation and stock buy backs.

When the black swan corona started to pop the bubbles, 500,000 Americans lost their designation as 'millionaires' when their 401(k) digital illusions of wealth dropped like a rock.

There was a time when the fed only printed 1 trillion dollars every three years. Now, the fed practically prints 1 trillion a night just to support the REPO market and prevent banks from seizing up due to lack of liquidity. This is in addition to the trillions of bail outs given to companies that are not even 'American companies' - like cruise liners.

Next to pop will be the much bigger bond market.

Take the cerveza seriously, as I do. People are dying. But also look beyond it, because hyperinflation and possibly Greater Depression are on the horizon (we are already in a global recession).

Get woke. Stay woke. Spread the woke.

[Plateauplower]

I don’t think they are worried about inflation. Rather, the real concern would be deflation resulting from a depression rather than a recession, which infusing cash helps prevent. Not to mention, some people that lost low wage jobs and need money right now to eat. Many people are without an emergency fund and live check to check.

Stock markets are forward looking. When this is over the economy could come roaring back, or it could take years to recover. Nobody knows yet, cause it’s not possible. Some emerging market stocks are very good, that doesn’t mean the population there is wealthy...On the contrary places like Africa have good stocks because they have tremendous natural resources to be exploited for profit.

I’m down more than 30% and well into 6 figure losses. I look at the market right now as a great buying opportunity, with impeccable timing for my stage of life, income and expenses. But you do you, goats are certainly trade-able goods in a madmax third world economy. I think I’ll gamble on stocks, they don't make messes in the yard.

[Karl_Hungus]

The stock market and main street economy are two separate entities. But many are led to believe the stock market defines the real economy.

Hopefully many are waking up to the fact that the stock market is nothing but a ponzi scheme.

Last week 3.3 million Americans filed for unemployment, and the stock market that day rose. Did that make sense to any of you?

Now, 6.6 more Americans filed for unemployment.

The best performing stock markets in the world belong to Venezuela (where everyone is a millionaire but people eat zoo animals) and Zimbabwe (where everyone is a billionaire but nothing to eat), thanks to hyperinflation and stock buy backs.

When the black swan corona started to pop the bubbles, 500,000 Americans lost their designation as 'millionaires' when their 401(k) digital illusions of wealth dropped like a rock.

There was a time when the fed only printed 1 trillion dollars every three years. Now, the fed practically prints 1 trillion a night just to support the REPO market and prevent banks from seizing up due to lack of liquidity. This is in addition to the trillions of bail outs given to companies that are not even 'American companies' - like cruise liners.

Next to pop will be the much bigger bond market.

Take the cerveza seriously, as I do. People are dying. But also look beyond it, because hyperinflation and possibly Greater Depression are on the horizon (we are already in a global recession).

Get woke. Stay woke. Spread the woke.

^^ I don't know about any of that complicated economics stuff....But I did stay at a Holiday Inn once.

[Jtbny]

Something we agree on!

The FED is pumping $75 billion a week into the market and NOW they have conveniently changed the law to include equities as "collateral" for low/no interest rate corp loans. Why is this important? Because the government is now going to be share holders in corps, which BTW can/will dilute the shares and give the govt leverage on the "free market" and a voice on how businesses conduct their operations.

You're right, we should be concerned but the richest of the rich are benefiting bigly. Hell, the airlines have baked this behavior into their business model per leaked reports. I laugh when I hear people say we are a capitalist society. Our markets are so manipulated there is no invisible hand providing equilibrium, there's a big fat fist printing money and enriching the elite while they throw scraps to the peasants.

Edit: the new proposed law by McConnell is a joke too. Let people withdrawal up to $100k of their 401ks penalty free for 3 years. Nothing to see here except "sell low buy high".

[Payton1221]

I’m down more than 30% and well into 6 figure losses. I look at the market right now as a great buying opportunity, with impeccable timing for my stage of life, income and expenses.

Tim,

After the first real downturn that I experienced (2000-2003), I started then the habit of only looking at the end of each quarter. I looked at the close of business on 3/31 and I was down 17%. If I had checked it ~3/20 or so, I probably would have been down nearly 30% too which would equate to about THREE of the 850 ft^2 starter homes that my wife and I bought in 1994.

I too think now is a great buying opportunity (perhaps not a bottom, but I believe a year from now we'll be MUCH higher than we are now). With that noted, I have NEVER bought on margin and don't recommend it, but I'm somewhat entertaining a $20,000 draw to put in an S&P index fund thinking I can profit enough to buy my son a used car next year.

[Plateauplower]

Tim,

After the first real downturn that I experienced (2000-2003), I started then the habit of only looking at the end of each quarter. I looked at the close of business on 3/31 and I was down 17%. If I had checked it ~3/20 or so, I probably would have been down nearly 30% too which would equate to about THREE of the 850 ft^2 starter homes that my wife and I bought in 1994.

I too think now is a great buying opportunity (perhaps not a bottom, but I believe a year from now we'll be MUCH higher than we are now). With that noted, I have NEVER bought on margin and don't recommend it, but I'm somewhat entertaining a $20,000 draw to put in an S&P index fund thinking I can profit enough to buy my son a used car next year.

I look at mine twice per month to update a spreadsheet I maintain with various accounts. It doesn’t bother me in the slightest seeing the response to essentially stopping the economy. My time frame is long enough that this won’t impact it for the worse (likely for the better). I’m long on everything and just throw it into an S&P500 index fund primarily for stocks.

Bacon
I don’t like the idea of government owning shares either, but hopefully that will be a short term leverage / collateral type deal. If not they better send me a dividend check annually.

[Karl_Hungus]

The woke is being spread bros....

[LWW]

[QUOTE=Jtbny;1601514391 I laugh when I hear people say we are a capitalist society. Our markets are so manipulated there is no invisible hand providing equilibrium, there's a big fat fist printing money and enriching the elite while they throw scraps to the peasants.[/QUOTE]



All those communist countries including the poorest peasant countries still run on "capital", they need it for their footprint in the world.

[Jtbny]

Bacon
I don’t like the idea of government owning shares either, but hopefully that will be a short term leverage / collateral type deal. If not they better send me a dividend check annually.

LOL don't hold your breathe

I don't like it because 1)It removes the "free" in free market; 2)Corps use their equity (shares) to get no/very low interest loans, use that free tax payer money to buy back shares, inflate the price per share, give more shares to the executives, sell shares for major profits all on our dime.

[Mark1T]

G, the stock market is not a Ponzi Scheme.

But, bacon is.