Why Stocks Tumble as Treasuries Rise

Banks Cannot Survive Government Competition

Todays headlines are "Tumbling stocks and rising government financal instruments"

With a fiscally out of control government trying to plug up holes during an election year almost every step to financial ruin is being taken. Stocks must tumble from their artificially inflated prices as the money to speculate and make the rising prices disappear. Stocks must tumble as the government steps in to nationalize commerce. This week also saw dropping mortgage rates and how that fits in brings you to the twilight zone.

The elections are providing a stimulus to the government to try anything to put on a happy face. Everyone wants to be elected or re-elected and there are two well-backed slicksters ready to do more. To save the disgrace of half the homes in the nation falling into the abyss, lost fortunes of so many middle and lower class homes, were taken over by the government. These exorbitant and totally flawed loan portfolios, most with no chance of re-activating, will now sit on the government books as US debt to be paid by the citizens or their land. The money is still owed to banks, the private ones like the Federal Reserve, who in the end will take the land and more mineral rights along with the output of the indebted subjects for their tithe.

Treasuries rise because the government has given its sovereign word that it will cover all debts of these private banks whose spurious loans enriched the rich for the last decade. As the government loans come out, as they have this week, they will be astonishingly cheap. They are cheap because the government just gives them away. Since banks must now crash with no way of competing against a sovereign nation in a commercial market we will watch many multi hundred year old institutions vanish along with their wealth. A repeat of 100 years ago done with modern techniques.