Earth To Stock Market. Earth To Stock Market. Are You There Stock Market?

Yesterday the Dow hit a five-year high. Today it opened just 89 ticks below its all-time high. What could cause such optimism?

The sequester that takes effect Friday, which besides guaranteeing many thousand layoffs and reduction in some critical public health and research spending, illustrates in an undeniable fashion that our national government is dysfunctional. Could that be driving the stock market skyward?

The fact that our GNP grew a pathetic .01 percent in the last quarter of 2012, even before the sequester, and everyone now anticipates another government debt ceiling farce. Is that getting Wall Streeters feeling their oats?

Or perhaps the Italian election results, which along with revealing a widening disgust with a banker-driven austerity in a Europe that these days seems to benefit only bankers, is yet another signal that the united economy of Europe is an unworkable fantasy. Could that be the driver of stock market gains around the world?

The various wars in the Middle East, the big ones already going on and the even bigger ones that look like they could happen soon in a region that makes the 1913 Balkans look like Mayberry…Global warming’s effects, now too great to ignore…North Korea rattling its chains louder than ever…Other political, climactic, even growing international health worries…Could these be the underlying forces fueling such stock market optimism?

Earth to stock market. Earth to stock market. Come in please stock market. Earth bound folks in the home world want to learn your secrets.

(Michael Silverstein’s comic novel, The Bellman’s Revenge, about toilet seat-borne venereal disease and excessive parking ticketing, is available from Amazon. Also check out and support Kay Wood’s zany graphic novel about a methane threat that could destroy the earth, The Big Belch, now featured on Kickstarter.)

7 Comments

  1. Wall Street used to like gridlock. Does it still hold that view? If not, it is hot air and I hope it is not as tragic as the balloon crash in Egypt.

  2. I don’t like the near term future of the Dow. I could see it losing a third of it’s value.

  3. I’ve come to think of the stock market as a completely separate financial creature, divorced from the actual commerce and wages of the nation. A rigged game that allows certain institutions to make money out of money, or in some cases thin air. Nice gig if you can get it.

  4. Exactly, slamfu. When the market is at a low, the wise guys buy. By the time it is peaking, mom and pop get in and buy; just as the wise guys sell. At 10,000 the wise guys will buy again.

    And the beat goes on.

    It’s much like sports gambling; the line or action has nothing to do with what the wise guys think will happen in the actual game or event; rather, the line is what the wise guys see mom and pop do. And when they see an event or the Dow that is unreasonable or unsustainable, they bet the other side or cash out; starting the cycle again.

  5. The market will fluctuate.

  6. It seems to me that the financial world has an unspoken mantra that volatility is it’s friend. Up, down, boom, crash, whatever. They always get their tiny slice of every transaction, and the more uncertain things are, the more they get to skim off the top.

    Stamp Duty, anyone? Anyone at all?
    er…
    That’s it.

  7. Too big to fail.
    Taxpayer insured insanity.

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