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Is the “Eurozone Crisis” a Money Pump?

The markets fall several hundred points in a day.  Today the DJIA is down more than 3%.  Then tomorrow, or the day after tomorrow, they’ll rise.  Then they’ll fall precipitously as everyone swoons 500 points over the next phase of the Eurozone crisis.  Then they’ll rise again as better news emerges – for a day or two, as the news of a new deal in Europe is reported.  Then someone catches a cold, Berlusconi falls asleep at a meeting, and the markets fall again.  You get the idea.

It looks an awful lot like the Europeans are manipulating the stock market through the selective development of “good news” and “bad news.”

Next, Sarkozy is going to slip and fall on some ice in France and Merkel will catch the flu at the same exact moment and the markets will just stay eeeeeerily stable.

I don’t have enough money to trade in the equities markets right now but just watching this weird behavior reported breathlessly everywhere across the world every day, I have to think:

All this quasi-regular periodic convulsion seems like an ideal money pump.  You can make the markets rise on good news, you can make them fall on “bad” news, and each time you can calibrate the rise and fall of the markets fairly well.  They’ll rise and drop by several percent depending on what the news is.  Spurt up several hundred points (a few percent) on good news and it will just as reliably sell off when there is more “bad” news.  This has been going on for a long time now.

We see this weird sawtooth pattern in the Dow and it’s amazing how well it corresponds to the news coming out of Europe in one form or another, good or bad.

I think the Eurps are pumping the equities markets.  They seem to be having a crisis then a reconciliation then a reemergence of the crisis than a reconciliation then another reemergence of the crisis, and so on and so forth.  They’re broke!  They need money real bad.  Particularly the wealthiest members of their societies right now, because they’re all in deep doo-doo generally, so it’s better to have money when you announce the final austerity programs for everyone else.

How long can they keep that up?  What do you think?  Look at this sawtooth pattern in the past six months.

It seems to me that the Europeans know when the markets will go up and when they will fall because of the news they make, they’re just convulsing the markets up and down almost at their whim and according to the spirits of the angels in their medicine cabinets.  You only have to know they’ll rise and fall by a few percent to make a LOT of money – as long as you know in advance which direction the swing will go.

http://money.cnn.com/data/markets/dow/

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