By Tony Treece
Wow, we are living in exciting times! After Friday’s stock market closed with the biggest loss since 2011, it opened this morning and immediately dropped over 1,000 points. It began inching back up as the Plunge Protection Team began working their magic.
Did you know that shortly after the Black Monday stock market crash in 1987, President Reagan signed an executive order forming the President’s Working Group on Financial Markets? It’s commonly referred to as the Plunge Protection Team, and its function is to stabilize the markets.
Former member of the Plunge Protection Team and financial policy analyst Dr. Pippa Malmgren stated, “There is no price discovery anymore by the market, governments impose prices on the market.” The government controls and manipulates the stock market.
That the stock market is manipulated is easy to see. It has been for years, ever since the Federal Reserve got involved in monetary policy in the years preceding the Great Depression. And remember, when the Great Depression started, the stock market was completely closed for four months.
A perfect example is the John Maynard Keynes economic philosophy that our entire monetary policy is based on. Keynesian economists believe that if you pump enough money at a problem it will be magically fixed. We can see this is not true in numerous instances from education, to welfare, to monetary policy.
After the 2008 mortgage meltdown the government began creating trillions of dollars to buy bad mortgages from the “too big to fail” banks, and for months $85 billion per month was used to buy these bad loans.
Banks in America are holding hundreds if not thousands of bad loans currently. If they were released the 2008 catastrophe would look like child’s play. Why do you think banks are slow to let money flow now? They are worse off than before they were given trillions of dollars, in a dubious move that was justified by the failed economic philosophy of Keynes.
Simply put, throwing money at an issue does not fix it, and if you still do not believe it, we believe you will believe it this fall. We are in for a rough fourth quarter. If you like an adventure and are willing to pay for your adventure, leave your money in the stock market and banks. You’ll feel first hand the failed Keynesian philosophy you were suckered into.
What you’ll see is that the stockbrokers will tell you to just hang on. The market goes through bull years and bear years. It’ll come back. It’s a long-term thing. Then as it continues to decline, the stockbrokers will begin telling you to sell. Guess what? Then they’ll get to charge you more fees when you sell and then buy back when they think the storm has passed. Stockbrokers have a built-in conflict of interest. Many investment advisors make quarterly fees on your money being under their supervision. So they have to keep you in the market at all costs. Their livelihood depends on it. We do not operate like this, and this is another example of why the Wall Street system of retirement planning is set up to make us losers. You pay fees you never even knew you were paying, more than likely. Most people never read the entire prospectus.
Get out while you still have money to get out! I feel so bad for those who have worked so hard for their money only to lose it in a scheme that is destined to fail. A 10,000-point drop in the market is completely realistic. Remember, it was up over 10,000 from its 2008 bottom. What will a 50% drop do to your retirement dreams? Keep believing the lies of the mainstream media, politicians, and those who are making fees on your money and continue losing if you must. My heart is heavy for people in this camp.