"We've Never Seen this Before – Such a Huge Rally, and the Little Guy Is Out" → Washingtons Blog
"We've Never Seen this Before – Such a Huge Rally, and the Little Guy Is Out" - Washingtons Blog

Monday, January 11, 2010

"We've Never Seen this Before – Such a Huge Rally, and the Little Guy Is Out"

Joseph Stiglitz says that Wall Street is hyping up the economy to sell more stock.

Has it worked?

Well, the stock market certainly has rocketed up from its March lows.

But many investors are still avoiding equities.

As Vincent Deluard - a strategist for TrimTabs Investment Research (25% of the top 50 hedge funds in the world use TrimTabs' research for market timing) - says:

We've never seen this before – such a huge rally, and the little guy is out.
In other words, the stock market rally is due almost entirely to hedgies, pension funds, banks and other institutional investors, and not every day investors.

It is even possible that the government itself has been propping up the stock market. And Bill Gross and Nouriel Roubini say that we have a Ponzi style economy.

TrimTabs notes that small investors pulled out $14 billion net from stock mutual funds from the beginning of last year through mid-December, on top of a net $245 billion withdrawn in 2008.

Given that, at the end of September, individuals held 80% of the $19 trillion in stock in U.S. companies, both private and public - according to the Federal Reserve (see this, for example)- recovery will not happen so long as the little guys are sitting on the sidelines.

TrimTabs notes that most of $592 billion taken out of money market mutual funds last year has gone into bond and bond-hybrid funds instead.

No wonder David Rosenberg is saying:

  • "People have been lured into two bubbles seven years apart, and for a lot of them it's over."
  • "The bulls say if the market is up this much without retail investors, just watch when they come in, but it isn't going to happen."
  • Investors who have not been spooked or angered by the market are probably too poor to buy anyway.


  1. Looks like individual citizen investors are getting the idea the market itself is a pyramid scheme. While made up of companies, the investing and trading firms make money from money, and they make most of the movements happen. These firms only function while people continue to sacrifice their money into the system. Wall Street doesn't make money, it just shuffles it around, and that lets parasites skim off the top.

    Who is John Galt?

  2. The depth of the human depravity and corruption exhibited during this depression -shows absolutely no sign of abating.

    There is no stock market rally going on. Get that through your thick skull.

    It's all just another government bailout for the bankers, Wall Street brokers, and discount brokerage houses like that swindling Ameritrade that is owned by the rapacious Toronto Dominion out of Canada.

    They are all selling -into- this government-money-led rally -as fast as they can. They are tripping over each other to sell stocks to the next fool that lays down his money. The stock don't even exist, the greed is so great. These are short sales that will be covered soon enough.

    It's like getting a reprieve after death. None of this stock market rally is led by fundamentals. It's all a fraud designed to keep Obama's inauguration party going. Remember 700 billion dollars worth of walking-around money!

    And the biggest swindling money yet, -will be made when they pull the plug -and it all comes crashing down again, but even worse. They;re locking in those gains right now.

    Then people will start saying, "depression", then, -those who haven't slit their wrists.

    Anyone left in there with a 401k or whatever -should seriously have their heads checked for loose nuts and bolts.

    In other news, -"Ultimate fighting" needed to close NY budget gap-. http://www.reuters.com/article/idUSN1116221620100111?type=marketsNews

    We all start out human beings when we enter this world.

    There are very few of us left -who will remain human beings throughout our lives. Drugs, booze, greed, bestiality, lust, arrogance, gluttony, superhuman delusions of grandeur -and more- take their human toll -long before the grim reaper puts pennies on our eyes.

    We should all note in passing, Governor David Paterson of New York has clearly left the building -with this one.

  3. This is frontrunning using HFT to pump the market. The public isn't buying it.

  4. c'mon guys...there is no reality left in life, except maybe behind your closed doors. Life is a steaming pile of shit, that is perfumed to be acceptable, and we step in it everyday without thinking twice.

    You eat shit. You drink shit. You breathe shit. Your mind is fed shit. Its all shit.

    So when you either decide to stop "perfuming" or ya just run out of that slick smelling stuff...breathe deeply and remind yourself that the shit smell won't go away until you GET RID OF THE SHIT.

  5. Last week WSJ reported similar story about the manipulation and Goverment intervention by presidential directive PPT

  6. Someone during the Bush administration said we are spending like there is no tomorrow... Well. Probably there wont be any tomorrow. all money is created out of thin air and the stock market is a big ponzi scheme. Now this generation starts to understand it. but too late after the NWO is consolidating

  7. "The little guy is out?"

    No, not exactly. "The little guy" is the one the government is leaning on to keep the market afloat to cover the pensions and retirements of state, local, and federal workers.

    Rome takes care of it's own, and all the rest are damned.

    "The little guy" doesn't know which of his debt payments to miss again before it's finally the house payment.

  8. So CNN wonders why some people feel depressed after seeing Avatar. http://www.cnn.com/2010/SHOWBIZ/Movies/01/11/avatar.movie.blues/index.html

    But it's obvious why. There is no stock market on Pandora.

    Oh what I would give to never hear anything of the stock market, or it's PE ratio absurdities, short selling, PPT, frontrunning, Ponzi scams, CEDE & Co, or any other such stupidity, ever again.


  9. If you buy stock, you are supporting the warmongering filth running this country. It's as simple as that. They have two wars going to protect Israel, all the while lying about why we are really there. It's beyond disgusting.

  10. The government is what has the final say in deciding these days what is right or wrong for us. Some types of stealing are unlawful and other types are lawful depending on whether they are allowed by law through schemes like stock markets. Some types of killing are not lawful and other types are lawful depending on whether they are allowed by law through schemes like wars. Since government these days is a plutarchy this all makes sense.

  11. Here's why retail investors won't go back in...Atimes.com, August 2009, Read Goldman Sachs: The Lords of Time. Even though they are "stiffing" their own customers with their actions, Goldman Sachs refuses to see that their actions are tantamount to "front-running" which is illegal. There is more ethical behavior to be had from bookies than from these privileged despoilers of the American economy. Why? Because they have more loyalty to Israel than to the US which has given them so much. This is a very sad state of affairs and despite what is often said about Americans, they are not stupid nor fools. They have quietly taken their money and walked with it.


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