Friday, November 19, 2010

Investor Class aka Marching Morons Bludgeoned As Municipal Bond Frog Croaks. More Party Favors To Come.

The investor class is going the way of the Dodo bird before this is all said and done.  It was all a con game from the very beginning.  The concept of an investor class focused U.S. economic policy on a self-fulfilling prophecy of collapse.  It’s part of trickle-down economic neoliberal feudalism perfected by Ronald Reagan and the modern day dunces in the Republican party.  Once again, the endless political idiots messing in our economy. 

The investment advisor bubble we wrote five years ago was building is going the way of the Dodo bird too.     What is an investment advisor anyway?  Someone who agrees to support the zealous ideology of a corrupt financial system that is nearing its end?   The same people who lose trillions of dollars for clients in the last few years by lapping up propaganda aka research provided by Wall Street con men?  Someone who takes financial competency tests approved by the likes  of Lloyd Blankfein, Hank Paulson, Tim Geithner and Jamie Dimon?  But as my disclaimer states, make sure you check with an investment advisor before participating in the casino.   

If the investor class realistically comprises about 5% (and don’t believe the lies that everyone is in the investor class because they have a 401K) of the population and 90% of them aren’t capable of realizing  the whole concept of an investor class is a Ponzi scheme in itself, that means a large number of people catering to them are going to be unemployed before this crisis ends.   It’s very unfortunate and unnecessary this dynamic developed but its where we are heading.  

Remember our post on the Marching Morons?  Well, it remains in full force.  What a corrupt government doesn’t seem to understand, or possibly doesn’t even care about, is that as money and corruption from the investor class bribes our government for economic self-interest, thousands to millions of people are forced to follow suit with economic decisions to feed their families.  Even if these jobs create no capital in the American economy.  And, by the way, they don’t. 

As we move from bubble to bubble, Wall Street mints untold profits fleecing society while the millions of people who are forced to into “retraining” courtesy of the investor class end up suffering.   Millions have lost everything because we have a completely corrupt financial system which does not serve democracy.  So, we get a massive herd movement in careers driven by the Marching Morons we call the investor class.  Then millions of people become economically-invested in careers which are unsustainable or even destructive courtesy of bribery and corruption via the investor class.  Nothing defines this more completely than the investment advisor bubble and the MBA bubble, both of which we have been harping on for the last five years.

A perfect example of the complete incompetence of this deluded investor class mentality is that the boobs on Wall Street have piled back into municipal bonds.  But then when you bail out incompetency and fraud without any changes to the system, they go back to doing exactly what they were doing before.  That is, creating unsustainable aberrations in the economy and an artificial view that employment has stabilized aka Marching Morons at work again. 

This isn’t rocket science.  We wrote on here years ago that thousands of defaults and haircuts in the municipal bond market happened in the last Wall Street-induced goat rodeo we had in the U.S.    This week, some municipal bond holders got a rude awakening with many bond funds and ETFs getting butchered and losing as much as a  year’s worth of gains in a week.

Just as we said before the 2008 collapse and we have said since the collapse, in today’s environment financial markets will move well too fast for people to believe they can beat it.    Then when under water, the investor class applies the greatest of investment decisions, “hope”, to their strategy.  I hope it comes back.  I’m down 20% and don’t want to take the loss.   I hope it comes back.  I’m down 40% and don’t want to take the loss.  I hope it comes back….  er, I’m down 60% and I’m selling.   

We need to return to an economic model which has at its core the concept of self-determination.   And part of that is a government which is self-determined.  Free from the endless corruption which heaps massive costs on our society in great wealth transfer schemes.  To get as much of this corrupt influence out of our lives.  This is all so laughable that our leaderless leaders are so gullible and incompetent.  And guess who suffers?  Democracy.  The rest of us. 

Once again this maxim of very fast moving financial markets is proving out. 

Link here.

posted by TimingLogic at 9:29 AM

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