CanadianInvestor

Options Trader Weekend Update: Charts, Art and Market Manipulation

With regards to overall market manipulation the most important thing to remember is that government spending competes with private investment for capital. With all this capital sitting on the "sidelines"; where it presumably sits in "safe" government securities, and given the current and future spending commitments being made by Obama and the US government requiring sizable issuance's of debt, it's easy to see that capital inflows into the stock market is not in the best interest of the US government. Expect the US government and their Wall Street banks to keep this market from going very high, at least until Obama has completed his costly socialist overhaul.

Something else to think about....why is the US gov making it so difficult for banks to return the unneeded TARP money...ask yourself where is this money sitting? It's not under the bank CEO's mattress but in "safe" government securities waiting to be returned.

P.S. Good luck with that medicare....too bad more US media and politicians don't mention that Canada, the birthplace of medicare, is going broke funding it.....if current trends continue, by 2030 all of Canada's GDP will be required to pay for it! Even the sweet deals on drugs aren't helping control the costs.....Obama and his supporters are living in a dream world. The only solution is removing government entirely from healthcare. Let the free market drive the cost of medical services down and the productivity and quality up, as it has done in other industries left free from government intervention (vs. autos, banks, insurance, etc......all with high government intervention, regulation, and oversight).

All fact....not opinion!