Stock Market Rally Fact or Fantasy

Can you believe what a brokerage house has to say?

Remember our current recession was due from greed. This corporate greed fueled multi-million dollar bonuses for key executives.

Brokerage houses fed off this corporate greed and artificially inflated the stock market. The higher the stock market, the more bonuses these fund managers received. We all know that this hyper-inflation of the stock market blew up and created a recession far worse than the average American has yet to realize.

We all know that many brokerage houses failed or were bought out. These buyouts were funded with taxpayer dollars ( TARP FUNDS.)

Does it not seem strange that many of these very same brokerage houses are now making record profits while the rest of the country is in a major recession? These very same brokerage houses are paying back TARP funds so they can, once again, start making multi-million dollar bonuses. Ask yourself, where is this money coming from?

Most businesses are coming out with better than expected earnings in this last quarter. These earnings are not, in most cases, related to increased base sales, but are related to massive lay offs and/ or massive price increases. With increased earnings, the stock market has skyrocketed. The more the stock market increases, the more money is being made by brokerage houses.

Most businesses say their sales are slowly increasing from last quarter, yet the stock market has gone up way beyond what these businesses predict their sales to be. Oil has gone up 10% in the last few weeks, yet worldwide demand is down. Gold and silver have gone up, yet demand has not. Steel and copper have gone up, yet demand has increased very little.

My question to every person who owns stock.

What is driving up the stock market?

Is it increased demand or artificial market manipulation by the brokerage houses and other investors? All these brokerage houses and fund managers brag of the many billions of dollars they have for investment. With billions of dollars at their disposal, it is very easy to move the stock market. The more fund managers buy stock, the more the price goes up. The more the price goes up, the more they make. The more they make, the more they can tell their clients the stock market is in great shape.

Now I ask each and everyone of you who own stock.

If the consumer makes up 60%-70% of the sales in the U.S. and the consumer has significantly cut back on spending, where are all these increased sales that warrant the great increase in the stock market? Is the great rise in stock prices justified or merely a scam by the brokerage houses to make themselves look good and increase their bottom line? Is the current stock market at realistic levels or is it merely full of hot air that could explode in one day? Remember, it only takes the click of a mouse to create a massive stock sell-off .

Just think about it.