August 24th After Lunch

This trend has been consistent. A surprise bump in August puts fear in investors. Then when the third quarter’s financial reports come out after September 30th, with roughly 2/3’rds not meeting projections, on one day in October, every one at once decides to pull out…

That is the problem.

Currently there is no better market across the globe, which is why our stock market has had its good run… But when Treasuries at low percentages look better than stock market negatives, it does make good sense to switch…

Which is nothing new… The only problem is when everyone does it at the same time… It creates an hubris where stocks have no value and their plunge becomes intense…

You may have heard… today opening plunged 1100 points… Today, August 24th, 2015, marked the end of the largest running bull market on record… Good news is that it’s up 950 points… So if you’d already been sitting outside the market and jumped in this morning… this was a good day.. so far..

But that can’t happen forever and if the market had dropped 3300 instead of 1100 that 950 of available reserves would do nothing…

For six weeks we will stumble around and the stocks will slowly rise and bounce back, but the “skittish index” has just now shot through the roof…

When the 3rd Quarter reports emerge, and if they are over 50% below expectations… Get ready…

There is far less resiliency in the middle class now than there was in 2008-2009 “Republican Caused” Depression. And today there are far less Democrats in the House and Senate to approve any bailout which means the majority now think like Romney: let markets correct themselves,keep government out. Herbert Hoover said the same thing in 1929.

The good news is that by wiping out a good portion of the stock market’s profits which 99% now goes to the 1%, is that the middle class now achieves more equity than anytime since before Ronald Reagan. … when it does become more equitable, we need to instill policies that keep it equal like we did in 1932-1933…. Change the rules so that as wealth is re-created, 50% is given to the labor side of the equation, and 50% goes to the capitalist side of the equation…

Taxing more is the simplest and most effective way to achieve that. It worked very well once before.

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