Monday, March 8, 2010

Market Irrationality of Madoff - Fed & Obama


We know that quiet ego is the biggest ego as we have seen it through Fed Bernanke while Obama doesn't show as much as ego. Many around the globe now aware of the massive corruption going on, but our leaders are still thinking that it is like good old days business like as usual. Fed Bernanke would gain respect if he admits that entire system is corrupt. Sooner we see major correction, better it will be. But then, Fed Bernanke was about planning against Americans, aka herd, so, we can't expect anything rational decisions which will benefit Americans from him or Obama who is a kisser of the money.
It is quite obvious that millions of people would be withdrawing cash to sustain their living as unemployment check benefit is expiring -- if they have not done so yet.
    • March 8 (Bloomberg) -- Equity mutual funds are burning through cash at the fastest rate in 18 years, leaving them with the smallest reserves since 2007 in a sign that gains for the Standard & Poor’s 500 Index may slow.

      Cash dropped to 3.6 percent of assets from 5.7 percent in January 2009, leaving managers with $172 billion in the quickest decrease since 1991, Investment Company Institute data show. The last time stock managers held such a small proportion was September 2007, a month before the S&P 500 began a 57 percent drop, according to data compiled by Bloomberg.


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For change, he is saying a bit of truth. I was saying that Nobel Prized Economists are all bought by the FED Money corruption.
  • Stiglitz, Nobel Prize-Winning Economist, Says Federal Reserve System 'Corrupt'

    http://www.huffingtonpost.com/2010/03/03/stiglitz-nobel-prize-winn_n_484943.html

    One of the world's leading economists said Wednesday that the very structure of the Federal Reserve system is so fraught with conflicts that it's "corrupt."

    Nobel laureate Joseph Stiglitz, a former chief economist at the World Bank, said that if a country had applied for World Bank aid during his tenure, with a financial regulatory system similar to the Federal Reserve's -- in which regional Feds are partly governed by the very banks they're supposed to police -- it would have raised alarms.

    "If we had seen a governance structure that corresponds to our Federal Reserve system, we would have been yelling and screaming and saying that country does not deserve any assistance, this is a corrupt governing structure," Stiglitz said during a conference on financial reform in New York. "It's time for us to reflect on our own structure today, and to say there are parts that can be improved."

    Stiglitz made the remarks at a conference held by the Roosevelt Institute. He and other speakers, including Harvard Law Professor and federal bailout watchdog Elizabeth Warren and legendary investor George Soros, had bold ideas about reforming the nation's financial system.

Obviously this is true, moreover, the main cause is a few making fraudulent market manipulation as we can see 1% owns 99% of wealth around the globe.

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