I’ve made several comments on SHTF Plan recently saying that I was “guessing” that the dollar would rebound, the market would crash again, etc.
In the video below, MSNBC’s Dylan Ratigan is suggesting something that falls right in line with my guess. (Video interview follows commentary)
When the market (and everything else) crashed, Goldman Sachs (and other institutions) had at that point a bunch of money (e.g., from taxpayers) that they used to buy “stuff” (like stock, commodities?, etc.).
I THINK that their buying of all that stuff, along with purchases of other institutions, is AT LEAST a part of the reason why the market has been driven up over the last nine months…as Zero Hedge has frequently alluded to – high frequency trading between like six computers on Wall Street…as evidenced by the frequent low volume days.
This whole thing has been “helped” by the falling dollar…as I THINK it “forces” more and more “regular investors” (i.e., real people) to buy in because of the fears that they are missing the boat.
As more and more real people buy in, GS et al is able to sell the various equities at prices higher than what they paid, thus the seemingly ridiculous profits GS has made recently (of which the taxpayers get NOTHING as a return on their “investment”). Think about it – why would GS be selling this stuff off if they thought the market was just going to keep going up????
Well, IF that is what has been happening, what could follow it up that would REALLY be a kick in the groin to “regular investors” AND help GS et al even more?
It’s simple – a dollar rebound…which would make the money that GS has made over the last nine months worth even more…while really hosing the regular investors who get stuck with the equities that collapse as a “result” of the dollar strengthening.
That is what I am looking for right now…and the above reasoning is in part why.
Additionally, such an outcome would give GS et al an angle/argument to make that they did not do anything wrong. They were just buying and selling “stuff,” and got out before prices crashed again…which just so happened to screw “regular investors.” Oh well!
I think gold will take a hit too…BUT it will do well relatively speaking.
Anyway, that is my GUESS at what’s coming down the pipe.
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