I was watching a special that showed life in the late 1920's. The country was thriving in so many ways. People were prospering from all the opportunities that the new century brought in. Jobs were aplenty, people were buying goods and having fun was the thing to do. That is why they called it the Roaring Twenties until someone played with it
STABILITY IS NOT GAIN IN BUSINESS
Toward the end of the twenties, things were very quiet and predictable. There was no business killings or spikes in anything to cause windfalls or huge lumps of cash to materialize. Things were just ...well stable. For the country as a whole, that would be considered a sort of Shangra-La.
EVERYONE PLAYS THE STOCK MARKET
For Wall Street, banking institutions and various corporations, it doesn't help them to beat out last years sales or created wealth or dividends. At that time, everyone was playing the stock market and doing fairly well. It was a sign of wealth, intelligence, and class. In fact, you couldn't lose and for the prior years those observations proved true
MARGINS AND CREDIT
So, what does Wall Street do to create more business a sort of flurry or spike so that they can show even more prosperity? They allow people to play the stock market using credit and on what they call margins. In essence, you don't have to put any money down or into the purchase. Anyone now can participate in the stock market
PLAYING WITHOUT PAYING?
So, you would play or invest betting that companies would do well or not so well and make money as usual without investing anything. However, your playing without paying is artificially affecting the market and its direction and correction abilities.
YOU OWE MONEY
If your predictions were false and you had to pay up, well you just didn't pay. Times that by the tens of thousands of people who did this and you have stock falling from losses and people reacting to that dynamic. All of a sudden, the country woke-up to the reality of things are not what they appear to be
DOES ALL THIS SOUND FAMILIAR?
Today, the banks triggered the same affect. Buying something without having the means caused everyone to play and that playing drove prices through the roof. But the spike was not a natural one but man-made. We now are on the down side of the scheme
MANY MADE MILLIONS
What you don't hear too much about is all the people in high places making literally fortunes and pulling their funds out and hiding their assets. Then, they respond with conduct worthy of an Oscar nomination pretending they don't know anything while the market and the country react to their strategies..
History does indeed repeat itself
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