Yes, rigging goes both ways, it's hard to understand how Wall Street is now so close to the levels from which it collapsed in 2000, based on an economy that is running on the gas of liquidity supplied by Greenspan, inflating economies this way always ends in disaster, this bubble just needs a pin. The US economy isn't growing if you take out defence spending and tax rebates, but the US media is biased towards Whitehouse spin. Why else have the jobless cues gone up by 2.5 million since the so-called end of recession? Not a recovery by the usual definition. But I suppose it's different this time, like it was 1999 into 2000.
US consumers can't keep America afloat for ever. You can't spend your way to prosperity. I read a scary figure today, US GDP is 70% consumer spending!!
Sure it's in everyone's interest to have rising markets, but you don't always get want you want. The market is rising simply because investors wanted themselves a bull run, I can't see a genuine reason for this rise. It's interesting to note how Japan had these types of rises after it's own collapse in 1990, I say the bear is still playing with everybody.
Hard commoditiy prices shooting up, will cause further inflation ontop of price inflation experienced because of the sliding dollar. Inflation will rise quickly from nowhere, up come interest rates and down goes the US economy. I don't think the smart money is so naive as to believe it is possible to keep this bubble growing.
There was alot of insider selling last year. Big money makes money both ways, and they will know that this market needs taking down. SP500 p/e ratio in March 2000 was 29 point something, today it's 29 point something! It's ripe for a bit of political manipulation.
Frankly I don't care what happens to the US economy in the coming months and years, it will do what it will do, and I'll be only too happy to profit from it, we'll get back to those big moves in the market, that went flat as soon as Iraq became 'important'.
I wouldn't bet against the market coming down sometime before November.
