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Originally posted by unityemissions
reply to post by elmotox
Of course the DOW is manipulated. It's very existence proves this. It's merely 30 stocks, which are somehow supposed to be a major index..indication of economic status for US companies. They can be removed or added to manipulate the value. Besides this, look into high-frequency trading, or the plunge protection team. It's just a legal casino, and the "house" always wins.
Originally posted by elmotox
Originally posted by unityemissions
reply to post by elmotox
Of course the DOW is manipulated. It's very existence proves this. It's merely 30 stocks, which are somehow supposed to be a major index..indication of economic status for US companies. They can be removed or added to manipulate the value. Besides this, look into high-frequency trading, or the plunge protection team. It's just a legal casino, and the "house" always wins.
Thankyou and well said! I am in full agreement with your assertions.
Originally posted by G.A.G.
Originally posted by elmotox
Originally posted by unityemissions
reply to post by elmotox
Of course the DOW is manipulated. It's very existence proves this. It's merely 30 stocks, which are somehow supposed to be a major index..indication of economic status for US companies. They can be removed or added to manipulate the value. Besides this, look into high-frequency trading, or the plunge protection team. It's just a legal casino, and the "house" always wins.
Thankyou and well said! I am in full agreement with your assertions.
Thank you G.A.G; you both hold similar assertions but the tone of response varied so greatly. I appreciated your PM and it was very informative but i was not allowed to respond. Demonstrates the wide variation between IQ and EQ as unityemissions stated above.edit on 9-2-2011 by elmotox because: username edit
Originally posted by unityemissions
reply to post by elmotox
I see you process via feelings as a dominant function. I'm slightly more of a thinker than feeler, so can see that you may interpret my responses as being a bit cold.
Originally posted by unityemissions
Of course the DOW is manipulated. It's very existence proves this. It's merely 30 stocks, which are somehow supposed to be a major index..indication of economic status for US companies. They can be removed or added to manipulate the value. Besides this, look into high-frequency trading, or the plunge protection team. It's just a legal casino, and the "house" always wins.
Originally posted by burdman30ott6
I no longer believe that the Dow is directly manipulated. I think it is indirectly manipulated thanks to globalization and the devaluation of the dollar. Most, if not all, of the corporations on the DJI have massive holdings and assets firmed outside the USA. Those assets and holdings have actually increased in US dollar value because of the Fed devaluing the currency via the quantitative easing (an apt name considering the slowly progressing reaming that action is giving the American people) program. As a result, a liquid Asian asset held by company XYZ which was valued at $100 Mil or 825 Mil Yuan in 2000... today it is still considered "worth" 825 Million Yuan, but thanks to the devaluation of the US dollar this relates to $127 Mil US dollars today. This is the SNAFU of modern, non-US centric globalism. The pleebs in the US sit and watch their corporations apparently make massive US dollar profits while they, themselves, see little increase in sallaries and large increases in the price of goods.
Herein lies the rub. People's paychecks are a micro-economic point of exchange. Unless you are vested in the world of international business, you are only dealing with factors within the borders of the US when it comes to the compensation you recieve for your work. Thus, in the eyes of the payroll department see things, you should consider a dollar to always be a dollar. However, globalism has forced the consumer market to go macro-economic, meaning the average American consumer is now competing with nationals who's currency has increased in value vs the US dollar, thus American consumers ultimately pay more for goods than they did 10 years ago.
At some point the US will either have to institute protectionist policies (rather, re-instate the ones which built this nation to greatness in the first place) or tell their citizens "We screwed up and you tax payers and your future generations now are stuck with hind tit status, deal with it." It's pretty sad, actually.
Originally posted by larphillips
I think the "rising" Dow has more to do with inflation than actual economic strength or growth. It's not as if these companies and their shares are doing so well that they're worth MORE, I think it is that the dollar is losing ground so quickly and so badly, that it is worth so much LESS.