The NYSE price ticker keeps going up and up and up and up...
seemingly without stop.
There hasn't been a serious pullback, or even a scare (except when the FED tightened money).
This is not normal.
All of the old traders expect pullbacks and price discovery, and they are getting worried that there are none to be seen.
Many are expecting a 1929 style crash.
The markets can't keep going up forever!
But what if they could?
I believe that the markets will go up forever for several reason.
- There is only money flowing into the market
- More money is flowing into the market than can be withdrawn.
- Even the baby boomers retiring and pulling out their investments can't compete with the money flowing in.
The money flowing in is by two main methods
- The FED, through the plunge protection team and QE are printing money to buy the stock market.
- The FED, through lowering interest rates and basically giving free money to corporations; those corporations are buying back their stocks.
And, these things can go on forever.
The FED is the printing press.
More money can be made forever.
However, there is one big problem.
What happens when all the stocks are purchased?
Well, no problem, just sell more stocks!
(you should be getting a shiver running down your spine)
And this is exactly what seems to be happening. The NYSE and others are selling and trading stock that doesn't exist.
DTCC failure to deliver is a common occurrence.
Imagine if Wallymart, or Home Despot gave you a failure to deliver?
You went to the store to buy some paint, you get the counter and... sorry, we can't sell you that paint.
Customers would be outraged!
But, it seems SOP for stock trading.
What i would like everyone to consider is that all of the stock is already purchased and owned by either the corporation or the FED, and at some point, someone is going to pull back the curtain, and trading will just... stop.
It is estimated that 5 stocks are traded for each outstanding share.
So, when the music stops... who is already sitting in the one chair remaining?
Will the people sit back and just accept it as they are told they own nothing?
I can assure you that the umbrella corporations that control all the corporations won't give up their preferred stock.
And i am sure that the corporations won't give up the stock that they say they repurchased.
And the FED (or whatever front they give it) won't give up their shares.
Meaning all the people will just be left holding the empty bag
Meaning all the trading houses will just close down.
All the people that owned stocks will get a cash payout of whatever's left of the trading companies.
And since all that the these people own is a promise... they will get nothing.
The stock markets of the world will just close down. The price never having crashed.