It's a wonderful time to be alive.
The Obama Administration has committed to artificially propping up stock prices, using the various bailed out banksters as proxies. What could go wrong? After all, the theory of "Potent Directors" informs them that such intervention is right, proper, and beneficial.
But now, their lead horse has come up lame - Goldman Sachs' trading operations ground to a near halt*, after being compromised by what appears to be a somewhat clumsy case of industrial espionage. And, surprise, surprise, suddenly the markets were able to fall! Quelle coincidence !
Could you Ask for a better explosion of the myth of Potent Directors?
Not that I think they'll take the message. They won't. They are Far too invested at this point.
They will patch up their horse, and/or rearrange their efforts, and carry on. So that it can all happen again.
I have just finished watching a TV show about the outbreak of bank robbery that swept the midwest in the early 30's, and one of the themes they kept coming back to was that the average 'joe' didn't mind it so much, as the banks had come to be seen as generally predatory institutions. We seem to be absolutely on that course again, except maybe Worse, as I expect there is far more genuine crookedness in that industry now than then, as so much of it is coming out already (see pretty much Anything by Tyler).
I imagine the execution will be different this time: Instead of submachine gun-totting gangsters in hot-rods, it will be sophisticated computer criminals. Though I suspect that, like their predecessors, they too will become celebrities, of a sort.
And I imagine the results will also be different: In the 30's, the risk of loses to bank robberies was one of the impetuses to the adoption of Federal Bank insurance. This time, I suspect it may be one of the straws that breaks that camel's back.
*Amendment: Now, we are told, GS trading did Not drop - in fact, it was EXACTly the same as percentage as previous volume report. 'Nothing to see here - Move Along!' I find myself stuck, with no middle ground, between embracing conspiracy theory, or believing a fairly obvious fairy tale.