ain't no fortunate son

Get Ready For the S&P 500 to Break Below 1200

Unfortunately, there is too much free taxpayer money in the hands of the investment baks for stocks to break down here, which would be the best thing for the markets, as it would flush out the drain once and for all and set the stage for a recovery.

The Fed, however, in one of the many interventions and manipulations by the government in what are now decidedly NOT free financial markets, gave them hundreds of billions of dollars in discount window candy and they are now the largest day traders in the world, whipsawing these markets and taking a piece of each huge intraday move... this activity accounts for the spectacular 100+ point up and down days that we are seeing almost daily, and it is the only real source of profit these investment bankss have today.

Its their cash cow, and they aren't giving it up.

And the price they paid for that? Another one of those quiet little talks with Paulson and Bernanke, in the smoke filled back rooms of their clubs sipping brandy, whereby they get to play with the toys, but they better keep the market up before the election or there will be hell to play, and their little party will be over.

Thus, the frenzied trading whenever the market starts to roll over, and always the bid stuck under it at 11100.

These are desperate times and these are desperate people doing desperate things in the administration, in the the FED, in Treasury and in the executive suites of Wall Street, and the 300 Billion or so in discount window money they have been given to manipulate this market is a small price to pay for an election and the trillions of dollars that will provide to bail out the desperate.