WEB Notes: So the markets have officially entered “correction” mode. That means the market has slipped 10% which fits their definition. We are not talking about a slow 10% here, but nearly instant within the last week…

I feel there are a bunch of people out there trying to understand the market swings, they mean well, but they do not know what they are talking about. Then they relay their own “understanding” to the people which really does not help.

Let us take for example,

‘What bothers me is the people who have never looked at a stock and don’t know how to analyze it [are] out in full force today. They’ve never been better about not knowing anything about the stocks. They got it all figured out.’ – CNBC Jim Cramer

There are others as well.

I am sure Cramer is a smart guy, but how about we dig into the numbers? What percentage of stocks that were sold off came from people and what percentage came from entities, like large funds, etc?

I just feel like the little guy (that would be you and me) is getting blamed for something far bigger than himself to cover over what is really going on.

I am just another guy talking right?

Of course. But I recall articles like this one, Proof It Is Rigged: “Fed Moved 93% Of Entire Stock Market Since 2008”. “Fed” means “Federal Reserve”. They have inflated the market through the bailout program, you folks remember 2008 right?

We talked about the market drop the other day, so reference that before reading on if you are just catching up with us.

You are smart people, you love our Father so we simply need to apply common sense to figure out most things in the world. It is a fact, the markets of the world are artifically inflated. They were “papered over”, simply meaning money was printed out of thin air to cover debts. Really, it was just an entry on a computer, nothing was even printed, but you get the point.

The stock market has gone up 40% in a year based on “nothing happened”. It is all hype, there is nothing to back up the rise in the market and there was nothing there to back up its previous record either. In fact, nothing has changed since the economic collapse of 2008. I take that back, debt has risen. Debt has risen dramatically actually which means the problem is worse than before and the world knows it.

We are seeing record drops in the stock market and being told it is due to fear that the Federal Reserve will raise interest rates. If those rates go up, homes will cost more, cars will cost more and those credit cards Americans pile debt up on will cost more. Everything will cost more as the costs to obtain credit (interest rates) will rise.

The stock market is driven by hype and hope. Now more than ever, it has become a haven for gamblers.

So the next time someone tells you the little guy made it break or the little guy took all his chips off the table you will know better.

Hype and hope are driving the stock market all based on cheap interest rates and without those, she will come tumbling down.

The dread that gripped equity markets earlier in the week re-emerged Thursday as U.S. stocks plunged into a correction on concern that rising interest rates will drag down economic growth.

Selling accelerated in the final hour of trading as major indexes breached round-number milestones they blew past just weeks ago. The S&P 500 tumbled through 2,600 and the Dow failed to hold 24,000. Both are headed toward their average price for the past 200 days, a level that technical analysts say may act as a magnet and a floor.

In the end, the S&P 500 sank 3.8 percent, taking its rout since a Jan. 26 record past 10 percent to meet the accepted definition of a correction. The negative superlatives are piling up quickly: the index erased its gain for the year to close at a two-month low and is on track for its worst week since the height of the financial crisis. The Dow plunged more than 1,000 points for the second time in four days.

Source: Stocks Enter Correction as Rate-Hike Fears Return: Markets Wrap – Bloomberg



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