mybudget360.com / by mybudget360 / October 15, 2014
The stock market is finally reflecting the true nature of the global economy. There is massive geo-political instability, central bank double-speak, and a growing trend of low wage labor. In the US, it is no surprise that subprime auto debt has grown at an outstanding pace simply because people are too broke to finance a car via traditional means. The S&P 500 has essentially given back any gains of 2014 within a couple of weeks. Volatility is now apparent as market participants realize that the free world cannot be controlled by plutocrat central bankers and their banking wizards. The market has turned into a deep capture casino where politicians serve as mouthpieces to placate the public and keep the wheels turning so people can remain calm when many real issues are obviously present. This isn’t merely a US issue. Worldwide countries are taking a piece out of the easy money playbook and the ramifications are being felt. There is no free banking lunch. The stock market correction is now here.
The stock market is hitting the correction button
First, much of the selling is being done by big funds triggered by technical trading. Over 80 percent of stock wealth is held in the hands of the top 10 percent. The public is simply a spectator to the stock market. So this correction is happening at higher levels. The public doesn’t need some Wall Street financier telling them that the middle class is shrinking. They are living this on a daily basis.
The S&P 500 is overvalued. We knew this. So it is no surprise that the S&P 500 has given up the gains of 2014 within a couple of weeks: