If the stock market starts to fail now - and I think its likely,

[Joe for Clark]

It may be important for many of us to understand and remind our fellow americans why.

Because, for a fact - the only thing the gop can say is any failure is because of a public fear of a dem win. They have to say that.

Assume a decline starts tomorrow -

Now the truth is, this has been overbought for so long it was inevitable.

There is no trader out there that does not fully understand that every short out there was knocked out by the rally. There is no "short" support on the way down. Enough to be pretty dramatic, maybe.

There has to be a more concise answer that this - and we better have one ready.

Joe

[ThomWV]

1. I'd Begin By Saying That The Market Is Not "Overbought"

One might argue with some success that even the Blue Chips have been stagnant for almost two years and were ripe for a rebound but for uncertainty over what direction our rudderless Administration might take next. War, peace, the yo-yo'ing in the price of oil, and incoherent immigration policy might pale in the face of decreasing home prices and none of this can be blamed on any previous Administration.

[Warpy]

4. The loss of expansion in the housing bubble

and the prospect of its partial, if not total collapse is freeing up executive dollars that might have speculated on housing in hot markets and diverting it to stocks, mutual funds, and monetary funds. There are just too many dollars out there with too few places to go while the working public falls deeper and deeper into debt.

This wretched time will be fueled by the debt crisis in banking, espeically unsecured credit card banking, which was the reason for that dreadful bankruptcy bill. You can't get blood out of a stone, however, nor money out of the truly bankrupt, so the banks are extremely vulnerable.

There may be a dip in the stock market as people who have assets there liquidate them to get out of debt, but that's not where the crash will be.

[Joe for Clark]

5. There are normally natural breaks in a decline -

as buyers and sellers take positions. Most significant declines are balanced by the natural give and take between buyers and sellers.

In equities markets, these breaks can be measured by short interests in the event of a decline.

And if those natural breaks are not there - it can get really bad.

I don't see those them. The shorts are not there.

Joe

[whistle]

2. How about a "sucker is born every minute"...who has control of the

...market? Big money and big money wants global war. A stock market collapse will assure global war.

[cyberpj]

3. "...and we better have one ready." This (excellent) link is mine:

http://www.businessjive.com/nss/darkside.html

[Warpy]

6. See naked short selling, also

for the quickie explanation. Yes, a law was passed against it in 2003, but it's still pulling an estimated $8,000,000,000 (yes, BILLION) out of the economy every year and into the coffers of unscrupulous hedge funds.

http://www.ncans.net/intro%20to%20naked%20short%20selling.htm

[Joe for Clark]

8. We better have a one sentence counter to this.

They will say its because they are afraid we will win in November.

Maybe - we should say cause they're afraid we won't??

I don't know - but the answer better be short like that.

Warpy, what you post is true - but this deeper than that. Specialists are short - there is no doubt about it. And its a lot more than 8 bil dollars.

Joe

[cyberpj]

11. Thanks for posting. Just finished it. Will share as I can but

so very many citizens have no idea whatsoever and get no help at all from our corporate media. I don't see how our country is going to survive such greed and arrogance. How sad that such a worthy ideal was trashed so quickly - 200 years or so being a drop in the bucket of time.

[mainegreen]

7. I've seen that one before. Really taught me a lot.

Very clear.
Very scary.
Nothing like companies with 10x more shares on the street owned than originally issued.

[Joe for Clark]

9. It is.

Inflation gauges get released tomorrow.

I expect this to begin tomorrow, personally.

Your observation is very shrewed mainegreen. I THINK - if the public ever really understood that they could be buying stocks that never existed except on some specialists ledger - they would never buy stocks.

Joe

[matt819]

10. Remember, though, they don't need any excuses

They will craft reality in any way they see fit, and their so-called base will lick it off the spoon. These people still blame Clinton for everything. They take responsibility for nothing bad that happens. So it doesn't really matter whether the markets soar or plummet.