How the Elites Manipulate Big Stocks – and Why They’re Failing

Thursday, April 12, 2012
By Paul Martin

The Daily Bell
Thursday, April 12, 2012

Where Has All the Trading Gone? … It’s one of the biggest mysteries on Wall Street. How can stocks be in their fourth year of a bull market and trading activity be so low? During March, average daily volume in equity shares was at their lowest level since December 2007, according to new data from Credit Suisse. This is the same month that marked the three-year anniversary of the bull market that caused the Standard & Poor’s 500 to double from its March 2009 credit-crisis low. – CNBC

Dominant Social Theme: What’s wrong with the stock market? It’s just in the doldrums and will recover shortly. In fact, it already did …

Free-Market Analysis: This kind of question is a kind of elite dominant social theme, no doubt about it. It frames the conversation and presupposes that the market itself is a greater good and that its growing failure is bound to be mitigated by additional success.

The elites are wedded to the stock market, which allows them to monetize various financial promotions. The bigger companies (stocks) receive the most attention. Facebook is a prime example of this. The company is likely in some sense an Intel operation, but it is being rolled out as investment opportunity of tremendous consequence. For our take, just Google “Facebook” and “Daily Bell.”

Smaller equity opportunities and private equity opportunities are, ironically, perhaps more sincere ones, in that they are less subject to elite manipulation. For the most part, the powers-that-be don’t bother so much with the small fry, but there’s no doubt the elites value the stock market for their larger efforts.

This can be seen with the nascent “green” economy. Without a stock market, the “new” economy that the elites are trying to put into place cannot be properly positioned. Stock markets are supposed to provide a public buy in, to essentially validate these vast, industrial promotions.

Middle classes are actually entangled in them as part of their “portfolios” and this provides further support for even the most dubious corporate efforts. Now howver, as the Internet creates further skepticism about the Way the World Works, it would seem this strategy generally is attracting increased scrutiny.

Of course, every time the market goes down these days it seems it is soon going back up. On Tuesday, stocks were up in many major capitals around the world. But this does not mean that the troubles of public equity generally are over. Far from it.

The Rest…HERE

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