GM the largest industrial bankruptcy ever and the 4th largest.
The market jumps at the open. Do the masses understand what this will trickle down too? Not only GM shriking, but auto suppliers as well not to mention dealers in every state.
But hey just as in the gaga years of the dot.com, these all dont matter for it is up up and away.
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Everything is done with the index in mind. DJIA that is.
With Citi and GM out of the way, DJ is climbing as the central planners intend it to climb.
Not that everything is peachy, but this is absolute bait for public consumption.
If the index is up the economy and everything related tot it must be just fine.
Remember my rationale about the markets and indexes? Long the index, short the stocks.
While DJ is 35% up from the March "bottom" individual stocks are near 0 (GM and C).
Now, don't tell me this is not manipulation.
For this purpose it is a heavenly gift when a big company reaches 0 and is kicked out (at the right time of course, not randomly or by the book), because it will be replaced with a healthier one which will inflate the value of the index.
So, DJ is painting an absolute false picture of reality in this case.
While companies are going belly up, the economy is booming? And the job losses are escalating.
Yeap, we're doing very well, thank you very much.
Alex.
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