It’s Disappointing That Obama Has Allowed The Banking Interests To Organize The Restructuring

Equity markets around the world are signaling correction. Isn’t it strange that the word correction implies improvement? The market Bulls obviously don’t think so.

But, being properly positioned for the market’s frequent pull-back to a long-term valuation, which we measure as the 350-day Moving Average, traders can make money.

As I reviewed each of the international markets in detail this morning, a few things were clear about the present pull-back.

The single-line track of each of the equity market indexes looks like it is sliding down a hill. The sell-off in every market is remarkably consistent through the past couple days, with steady capital out-flows from equities into government bonds, Dollars, and Yen.

This morning, however, there is a singular attempt to rally, and that is in the banks, where the buying is heavy. If you look at Japan, UK, France, Germany, Italy, even Ireland, the banks are trading much higher this morning. Really, why would this be when most stocks are selling off all around the world?

Why would that be other than the fact that banks around the world are in a desperate race to save themselves from bankruptcy and must conspire as a group to do it. It’s why the concepts of Self Regulatory Organization and central bank regulation over banks instead of government regulators must be squashed.

Capital markets need to be freed of intervention by syndicates working in their own interests. Let the market decide what’s in the interests of all the owners of capital, i.e., the shareholders’ interests, not just the financial managers’ interests.

Isn’t it about time these issues were addressed? Yes, but I am afraid that in the U.S., the president has allowed the banking interests to organize the restructuring, so we all know what the end result will look like. Unfortunately, we can expect same old, same old, which is such a disappointment when Americans had voted for change.

Subscribe by RSS Subscribe by Email