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-------------------- I've had a few of you respond to yesterday's dire Tito's Money with how the Dow Jones Industrial Average did today. After dropping 100 points on Monday, the Dow "surged" 337 points today. Instantly, everything is fixed, right? Well, let's discuss how the stock market works... The stock market isn't exactly your typical investor buying and selling stocks. Those ones got out at the right time during the late 1990's or lost their ass in the early 2000's. The REAL traders on the stock market are big financial institutions. Thus, when Spain reports that their Debit security auction sale does well, the stock market "came with joy". Ditto of what happened on November 30th when the Central Banks across the world agreed to lower their currency swap rates with each other. Fact is that the WORLD has a DEBT problem and the solution to create more DEBT. Thus, if you had a Credit Card that you ran up worth $2,000... Instead of legitimately paying it back and getting out of debt, you use ANOTHER Credit Card to pay off that difference. Worse yet, to be compared with the Governments of our time, in addition to paying off the $2,000 debt of the first card, you spend an additional $3,000. Point being, our world economies are drunken on cheap credit and there's a thought by governments and "too big to fail" banks that there is zero accountability for bad behavior. If you don't believe me, just try to convince me how "normal" it is for stocks to drop 100 points one day and then increase 337 another. Just watch the Volatility Index (VIX) as it remains high... Uncertainty still exists out there, especially with a 24/7 news cycle feeding it: CONTACT MR. TITO - Email: [email protected] - Twitter: @titowrestling - Join LoPForums.com: Feedback Thread © Mr. Tito 1998 - 2011
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