How is the bull market going to finally end? I frequently refer to anointed industries and anointed stocks. What makes them anointed? They have honed in the skill of using government for acquiring pricing power, capturing customers, rigging their markets and overriding the forces of free market competition.
For years I have been describing how stock prices are managed and moved higher with organized support. It is commonly understood that the Federal Reserve facilitates high stock prices. That is true but it is only a small part of the picture. There is complete cooperation between the Federal Reserve, ALGOs, banking industry, media and possibly others.
I am very much alone in understanding this. Keep watching and you will end up agreeing with me.
It is easy to get lulled into thinking that all stock transaction are always for the purpose of making profits over certain time periods. That is not the case. There is an active effort to consolidate ownership of stocks at the top so as to control the world’s factors of production.
This effort has been extremely successful. Anointed stocks are easy to identify. They are the stocks of social media, big banks, health insurance, biotech and probably some not on the tip of my tongue. Combined, these corporations have revenue greater than the GDP of most countries. They pretty much dictate policy to every government in the world. I make a strong case that they are the authors of our national response to the Corona Virus.
In a previous article, Expect The Announcement, I explain that when the market finally crashes, the president will make an announcement that the Federal Reserve must now massively buy equities to keep prices from falling further. Things have changed. Trump is not popular enough now to pull that off.
The depression we are entering will be much worse than hardly a soul is expecting. There won’t a recovery at all. There are no free market influences at the top. With the free market gone among the biggest players, real growth is not possible.
You will notice that the anointed industries I mention are doing well while the rest of the economy is falling on its face. Is that an accident? There are no accidents in economics or government when such seamless benefits wind up all in the same place. There is a such thing as being in the right place at the right time on purpose There is the use of political power for the purpose of insuring they are in the right place at the right time. In our current case, the ladder applies.
So, when it is clear that the economy, social structure and opportunities dismantle, the anointed stocks will be left standing. The “prudent” thing to do will be to nationalize those industries, or perhaps the strongest firms in those industries.
How will the anointed industries react? For them it will be a dream come true and the answers to their prayers. Decades have been spent acquiring the political power to guarantee their viability. Decades have been spent driving the stocks higher.
It will come down to either letting their stock values decline along with others or sell out to government at the highest values possible. What do you think they will want to do? They will lobby to have it turn out that way.
I am forecasting the future here. I am not clairvoyant I accept the knowledge that we are all born into an ongoing power struggle that continues for our whole lives. Self interest is the only relevant incentive with respect to behavior in the aggregate. Anyone can do this. As far as I know I am the only one whose work takes these things into consideration.
That doesn’t guarantee the outcome will occur precisely in the way I describe. The exact plan will be some variation of the general idea I explain. There is also the chance the stock market will break suddenly and so severely that so much damage is done so rapidly, that saving any corporations will be impossible. With the election coming up, the political scene will change. Certain candidates might get votes by pointing to the corruption of these organizations.
Without any surprises, you can expect the anointed corporations to be nationalized. There are no free market initiatives in the world today so citizens will surely be good with it.
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