New Dow high ahead? Happy talk feeds sheep

[marmar]

April 13, 2010, 12:01 a.m. EDT

Dow 12,000 next? Or new record 14,165?
Commentary: Wall Street's happy talkers making fools of 95 million investors

By Paul B. Farrell, MarketWatch


ARROYO GRANDE, Calif. (MarketWatch) -- Yes, we hit 11,000. Propaganda. Yes, we'll quietly sneak past 11,722 (Dow's 2000 peak). Yes, we'll happily climb to 14,164 (Dow's 2007 peak). Maybe. But you're being conned: Even a new record of 14,165 barely equals CPI inflation the past 10 years.

Get it? Wall Street's lost more than 20% of your money the past decade. Now they're blowing a new bubble, filled with more toxic costly hot air.

Yes, the bull's back. But not the bull market kinda "bull." The "happy talk" kinda "bull" propaganda. Did you hear the double-speak coming from our Greenspan clone, Ben Bernanke, the Fed's No. 1 lobbyist, Washington's cleverest politician and Main Street America's biggest enemy? His "best guess" last week: "If economic conditions improve, as I expect, we should see increased optimism among consumers and greater willingness on the part of banks to lend, which in turn should aid the recovery."

Yes, if this, if that, if, if, if ... pure bull. Bernanke said nothing that a high school student couldn't recite from an Econ 101 text. What's he really telling us? The Fed's member banks won't lend a dime till the consumer get more optimistic. What nonsense: He shoveled trillions to Wall Street fat cats last year when consumers had zero optimism.

....(more)....

Yes, this Propaganda Machine is feeding the media a steady diet of happy talk. And the No. 1 rule for ratings success is: "Know what the masses want and feed it to them." Audience become sheep, cheer, want more. Today people are desperate for good news after the tragic lack of leadership the past few years.

We got a dark reminder last week as two former Citigroup bosses (one a former U.S. Treasury Secretary) admitted they "did not have a grip on what was happening" in their "too-big-to-fail" bank. Yet those bozos created a disaster and still pocketed hundreds of millions. And far more evil, their fat-cat successors are spending hundreds of millions of their shareholders' money to defeat financial reforms that will prevent this from happening to them again.

Unfortunately this historical cycle is doomed to recur. Except the next time it'll end in another, bigger meltdown, and the Great Depression 2 that the Fed and Treasury keep pushing downstream. So expect the Propaganda Machine to keep feeding sound bites to the media, as this Happy Conspiracy between Wall Street, Washington and Corporate America keeps manipulating Main Street's 95 million investors. It never ends. .........(more)

The complete piece is at: http://www.marketwatch.com/story/new-dow-high-ahead-happy-talk-feeds-sheep-2010-04-13

[Submariner]

1. These Wall St and banker racketeers scared me out a few years ago

I don't feel I can trust financial advice from anyone. The game is rigged. The financial advisors have been gaming us, and our 401(k)'s show it...the Madoff's, ENRON's, Worldcom, etc. screwed us. Fear of these crooks has me in a money market making nothing, but at least it won't fall through the floor when the next crash occurs.

[greencharlie]

2. absolutely. Great read! nt

[OutNow]

3. Sell High, Buy Low

The happy talk folks at CNBC were talking up the DOW today. Oh boy, consumers and mutual funds were getting back into the equities market, blah, blah, Dow over 11,000 blah, blah, .....

Time to take some gains off the table. Today.