- Registration time
- Last login
- Online time
- 73 Hour
- Reading permission
Sell and Sell Now!|
The mini-crash this week is typical. The Great Crash of 1929 was deliberately induced by the banksters because they needed to impose a debt deflation. But because shares can be sold back to pay debt, they had to crash the value of the collateral; the shares that had been bought on margin.
The crash didn't happen all at once, the banksters had several attempts to smash the market: - Actually the Great Crash was by no means a one-day affair, despite frequent references to Black Thursday, October 24, and the following week’s Black Tuesday. As early as September 5, stocks were weak in heavy trading, after having moved into new high ground two days earlier. Declines in early October were called a “desirable correction.” The Wall Street Journal, predicting an autumn rally, noted that “some stocks rise, some fall.”
Then, on October 3, stocks suffered their worst pummeling of the year. Margin calls went out; some traders grew apprehensive. But the next day, prices rose again and thereafter seesawed for a fortnight.
The real crunch began on Wednesday, October 23, with what one observer called “a Niagara of liquidation.” Six million shares changed hands. The industrial average fell 21 points. “Tomorrow, the turn will come,” brokers told one another. Prices, they said, had been carried to “unreasonably low” levels.
But the next day, Black Thursday, stocks were dumped in even heavier selling . . . the ticker fell behind more than 5 hours, and finally stopped grinding out quotations at 7:08 p.m.7
- Great Myths of the Great Depression
Repeated small crashes means some suckers buy back in, thinking the shares are cheap (relative to the previous highs). After all, with return-free risk in both bonds and shares, the only retail investors in the shares market are momentum-chasing muppets. Newton was apparently caught out this way, having previously and correctly sold at a profit, realising shares were overpriced. Only with the final huge crash do the banksters put the suckers out of their misery and only then are the shares worth buying. But the suckers, who "know the price of everything and the value of nothing" don't buy after so many false recoveries. As max. Kiester says, the sheeple always buy high and sell low. As Peter Schiff says, the markets are a zero-sum game and without suckers the banksters would only be defrauding one another. This is why THIS occurs: End result, the most shorted names are now unchanged for the third day in a row even as the S&P has been in virtual free fall mode, confirming that paradoxically in this broken market, it is the scariest places that end up being the safest.
- As The Margin Calls Come In, The Most Shorted Stocks Are Doing Just Fine
The retail investors see weak shares and short them. The banksters see this and bid up the prices so that the short sellers are sitting on a loss. Then it's just a matter of waiting.