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Friday, June 11, 2010

Federal Government Running Scared Of The Economy.

http://www.businessweek.com/news/2010-06-11/circuit-breakers-may-be-sec-s-first-step-in-slowing-down-stocks.html
Circuit Breakers May Be SEC’s First Step in Slowing Down Stocks
The U.S. Securities and Exchange Commission’s plan to impose halts on some stocks that swing more than 10 percent starting today may be followed by more measures to slow down trading.

Let me see if I understand this.

The stock market is supposed to accurately reflect the state of the economy. But the federal government is working on rules and regulations that will allow an "unnatural" increase in stock prices, but will prevent an "unnatural" decrease in stock prices.

I am using the term "unnatural" in quotes, because the federal government is having problems. The problem is, every time the federal government talks about how wonderful the economy is doing and tries to point at some new measure they created to prove their point, even those numbers take a dive. It is reaching the point where only economists and government employees are capable of the "willing suspension of disbelief" required to believe any pronouncement from the federal government. And the government flunkies are getting tired of creating new metrics that are proved false even before the ink is dry. So, since reality won't cooperate with the federal government, the federal government will force reality to change it's ways. And since the government wants to claim that the rising stock prices proves the economy is recovering, they have to do something to prevent stock prices from falling.

After all, the federal government has no interest in fixing the economy. They just want the people to believe that the federal government cares. Which makes it easier for the politicians to get reelected and continue on with their conversion to socialism where you will have the freedom to spread the poverty with all the people who were forced out of their homes and their jobs.

Welcome to the land of debris and the home of depraved.

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