Federal Reserve Audit: Why Bernanke held First Fed Press Conference

California could have fallen into the sea, but the stock market would continue to spiral upwards – at least until the powers that be decided otherwise.

Why? Because that’s what it’s been programmed to do. Anyone who thinks the market is being pumped by new money is having an out-of-mind experience.

The Federal Reserve – Oracle of Delphi – held its first press conference this week since it was established in 1913, (only took 98 years). The markets lapped up Fed Chairman Ben Bernanke’s indecipherable blather and zoomed higher.

The market couldn’t possibly go down following Bernanke’s insistence that our economy is on the right track. He stated that rising prices are a passing phenomena, that inflation is under control.

Over 200 tornadoes devastated a broad swatch of six southern states hours after Bernanke spoke (a sign?), leveling cities in Alabama and elsewhere. Over 300 dead, 1500 injured, but the market rallied further the next day – and yes, the day after that. Worst tornadoes in 40 years – perhaps in the history of our country. Devastating losses that left people stripped of everything but the clothes on their backs. For many, those were in shreds as well. Who cares? Not Wall Street.

Remember when the market “flash crashed” 500 points in May, 2010, supposedly due to one trader pushing the wrong button, (you really believe that?). Nearly a trillion dollars in wealth instantly disappeared. That single “mistake” allowed the government to institute a limit on how much the market can fall in any given day – no more than 10 percent. No crashes allowed here. Everything is orderly, and the market will never, ever, not in your life-time, go down. Or at least not until Bernanke and his bankster friends decide that it should.

I just loved the part where Bernanke declared that he’s personally committed to transparency. Give me a break. He’s committed to avoiding the Fed audit that Members of Congress have been trying to pass for years. He’s committed to defusing calls for an end to the Fed’s “private” cartel power. Ben Bernanke reminds me of Sara Bernhardt. He’s a fantastic performer.

Or perhaps he has more akin with Mae West, who said: “An ounce of performance is worth a pound of promises.”

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Wall Street vs Main Street: Greatest Wealth Heist in US History

The stock market was on an upward trajectory from the end of August through mid-October, 2010, with nary a breather. In good times, the rocket ascent might have raised a few eyebrows. In bad economic times – and in advance of the November elections – it’s downright suspicious. Join Dr. Joyce Starr on Wall Street vs Main Street. Show Date: October 14, 2010.

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The market may have hit a high point on October 13, 2010 – only time will tell.

Yet, we know that 70 billion dollars was drawn out of US mutual funds in September, 2010 – further proof that Wall Street no longer needs investors to push the market higher. We also know that nearly 70 percent of trading is now done by high-speed computers relying on complex algorithms.

So-called “surprise” news of a sharp rise in food and energy prices (what a shock), plus a  20.6 percent rise over the past year in the US trade deficit with China, gives Wall Street players an excellent entry point to short the market. Never mind those enticed to buy in at the top.

Just as major US companies no longer need US workers to sustain and increase their profits (40 percent of their profits come from overseas markets), Wall Street has freed itself of “little guy” investors. Market players can force the market higher with a mere touch of a button – while pulling out their cash and forcing shorts to cover – which pushes it up even further. We’ve all seen this picture before.

For those who still have retirement savings in the market, the upward momentum of the past few months was a big relief. But don’t get too comfy…or grateful.

Wall Street players received 144 billion in bonuses for the greatest con in American history – “convincing” Main Street to bail out their companies. Now they’re playing the market like their own private pin ball machine – perhaps even assisted or directed by the highly secretive US Government Plunge Protection Team. We’ll never know.

Wall Street pundits also insist that US corporations are sitting on “trillions” in cash, just waiting to reinvest in research and jobs. Oh really?

The lure of “trillions of dollars” has a familiar echo. Pundits insisted that there were trillions of dollars in investor cash waiting on the sidelines only days before the market crash of 2000. Using numbers so large, who can contest it? How does anyone know precisely how much cash is hidden in corporate coffers – or how they plan to spend it? Which corporations exactly?

While the Wall Street cup runneth over, a portion of the long-term and under-reported unemployed may never work at “real” jobs again – and don’t have sufficient resources to start their own businesses or go back to school.

Approximately 48 million Americans depend on food stamps, the number of homeless in many cities has doubled in the past year and 1 in 5 Americans are facing foreclosure or are upside down in their mortgages. Yet, 72,000 stimulus checks worth $18 million dollars were sent to deceased individuals.

Wall Street received mega-billions for pulling off the greatest economic heist in American history – obliterating the wealth of Main Street – with the complicity of two presidents and the US Congress.

Now think about that 144 billion dollars in Wall Street bailout bonuses and the shibboleth that if talented types didn’t get their fat raises, they would exit for another Wall Street firm. Or the 183 billion in our money to save insurance giant AIG. Yet, who is saving one American after another from economic ruin?

When President Obama declared on October 12, 2010 that he would not support a moratorium on foreclosures – thus trapping a greater number of homeowners in a downward spiral – Wall Street sent the market higher.

Compare that to Chile’s expenditure of $30 million to rescue the miners trapped beneath the earth – one million per miner. Chilean President Sebastian Pinera put his presidency on the line, proof that the lives of his citizens mattered more to him than money. Wish it were so here. God Bless the President of Chile for reminding us that true leaders protect their people.

When President Pinara thanked numerous presidents and prime ministers for phoning him during the crisis, one name was unmistakeably absent.  Need I say?

To the American people…

Dr. Joyce Starr

Stock Market Terms for Trying Times

Redefining the stock market with laugh ’til you cry – or stop crying – definitions.

BEAR MARKET — A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry and the husband gets no new electronic toys.

BROKER — What my broker has made me.

BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.

CASH FLOW — The movement your money makes as it disappears down the toilet.

CEO –Chief Embezzlement Officer.

CFO — Corporate Fraud Officer.

FINANCIAL PLANNER — A guy whose phone has been disconnected.

INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.

MARKET CORRECTION — The day after you buy stocks.

P/E RATIO — The percentage of investors wetting their pants as the market keeps crashing.

PROFIT — An archaic word no longer in use. [Actually a code word for what only CFO's, CEO's and Brokers gain from YOUR investments, always have and always will.]

STANDARD & POOR — Your life in a nutshell.

STOCK ANALYST — Idiot who just downgraded your stock.

STOCK SPLIT — When your ex-wife and her lawyer split your assets equally between themselves.

VALUE INVESTING — The art of buying low and selling lower.

WINDOWS — What you jump out of when you’re the sucker who bought Yahoo @ $240 per share.

YAHOO — What you yell after selling it to some poor sucker for $240 per share.

To your economic survival!

Dr. Joyce Starr

PS: If you had purchased $1000 of shares in Delta Airlines one year ago, you will have $49.00 today.
If you had purchased $1000 of shares in AIG one year ago, you will have $33.00 today.
If you had purchased $1000 of shares in Lehman Brothers one year ago, you will have $0.00 today.
But—- if you had purchased $1000 worth of beer in a can, drank it all, then turned in the aluminum cans for a recycling refund, you will have $214.00.