Exactly right. Be careful of the gold standard however. Assholes hoard and charge usury. Other than that, I agree.
Potentially the largest trade in all of history is in the making
- Thread starter FireWalker
- Start date
Quote from ksmetana:
I am not talking about the rebate robots. The liquidity providers are harmless.
Sure, the deficit is a huge issue. Policy is a nightmare.
I'm not going to argue with you about this.
We've also hit a point where the economy simply can't provide for our population. There is not enough growth / expansion to accommodate new generations.
But I will argue about wall street being a mechanism for the rich to steal from the middle class.
Who is the long term loser?
It isn't the hedge funds, not the brokers, not the exchanges, not the investment banks, not the corporations.
It is the middle class investor. That is where the long term profits come from for wall street. Wall Street is sinking the ship. They / we are sucking money right out the economy. The working class puts their money in, and wall street takes it from them.
The rich continue to stockpile money while the middle class sinks closer and closer to the poverty line.
Sure it is policy blunder. Sure it is the result of the baby boomer "me me me" generation.
Jobs cut, salaries cut. Costs cut. Why? To maximize shareholder value? To maximize the amount of money that can be stolen by wall street?
This game is not immortal. One day it is going to break down, and it will take the world with it. The two are interconnected.
They took us off the gold standard, gave control of the currency to human beings. Devalued the dollar, hence devaluing the net worth of the middle class and poor. This decline in net worth yielded profits for the street. More money has been sucked from the system. That was the last major crime.
Best case scenario: New technology / industry develops and saves the world.
Potential scenario: Now we head into a 20+ year recession / depression. We will wait for the baby boomers to die off. Wait for wall street profits to dwindle, allowing some capital to re-enter the economy. Fewer children are born. Education costs drop. New policy brings job growth back home, away from emerging markets and China. etc etc We get the next generational bull market. You get a consolidated, more efficient America.
More probable scenario: The system breaks down as we will NEVER get the right group elected to fix the mess. World War 3.
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Technically, we double topped. We tried to retest (arguably. the market only lifted due to the devaluation of the dollar). We failed. Now we go lower.
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I'm not only blaming wall street. I am blaming the entire generation that created this neo-feudalist system. Eventually, the money teet stops oozing.
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Oh and by the way, fade the TLT. That is your bond trade. Trade of a lifetime.
Quote from bwolinsky:
Well, there's so much wrong in what you're saying, I'm probably not going to get anywhere by reason.
The United State is in no way a feudal system, neo or otherwise.