How Wall Street take excessive risk, fails then makes individual investors pay for it (lose their money). MF Global really screwed a lot of people.
Gerald Celente describes it better. Have a look at this video, he describes how all the Wall Street ex-Goldman Sach’s gang are treated like royalty while they steal from everyone.
U.S citizens should wake up to the fact that America is no longer a democracy, it is a country that only favors the rich and who they know.
People will not consume, buy goods until they can afford to. The debt load is so high for the majority of the world’s population so demands for goods and services will slow for the next little while, until people have pay off most of their debt or declare bankruptcy. One thing they won’t be doing is invest, what money do they have left over after food, mortgage/rent and petrol/gasoline. Look for slowing economy in the coming years.
All U.S stock market indexes took roughly a 3.5% haircut today. Question is this, “Is it down from here?” and “Is there going to be a santa claus rally this year?”
The answer to both of these question is who knows, anybody’s guess. The stock market now a days have pretty much been manipulated by the U.S Government and Federal Exchange who pump borrowed /printed money into the markets to inflate them.
The charges against Mr. Gupta will show that Gupta was the insider a member of financial establishment. If the charges are proven, it would be the worst kind of corporate betrayal for Goldman Sachs.
Mr. Gupta was named as Mr. Rajaratnam’s co-conspirator , unlike Mr. Rajaratnam and other insider traders, Mr. Gupta has been caught on tape discussing the alleged wrongdoing add the fact that he bought into a Galleon fund.
Gary Schilling the author of “The Age of De-Leveraging” thinks there will be more pain ahead. As the economy stalls, demand for goods and commodities will fall causing deflation and subsequently stock markets will fall.
Raj Rajaratnam, a self-made hedge fund tycoon convicted in the biggest Wall Street insider trading scandal in a generation, was ordered to serve 11 years in prison, the longest sentence ever in an insider-trading case but far less than prosecutors sought.
The judge also fined him $10 million and ordered him to forfeit $53.8 million, which approximated the illegal profits and avoided losses from the trading scheme.
I recently added more HQD.TO (Horizon Nasdaq Bear ETF on TSX) position, the reason is because I foresee limited upside and more downside risk within the next 1.5 years. The Nasdaq from here might pop a little higher towards 2700 but I do not think that would happen this year.
The 2007 violent sharp downward move happend on Oct.29th which signal the bear market that eventually ended and bottomed on March, 2009. From the beginning of the bear market crash to the bottom the timeframe was 17 months roughly. The pattern is pretty much the same for all markets Dow Jones, Nasdaq and S&P 500.
The reason why commodities prices drop is simple, when good times are here, demand for commodities increase. More computers, electronics and other products requiring commodities like gold, silver and rare earth minerals are being manufactured, because the economy is in a growth stage more products are being sold to consumers and corporations.
