Thursday, August 11, 2011

Stock market reporting stupidity

I had to laugh this morning when I read the Associated Press article about "Bleak outlook" causing the Dow Jones to drop yesterday. Does anyone believes the words they read or hear about the stock market?
Monday was a bad day - big drop. The AP article read that Wednesday's drop "...wiped out the big gains from a day earlier..." That would have been Tuesday. Of course, there were big gain; they were based on the bottom from Monday.

I was reminded of a greeting card that was popular in late 1981. Chicken Little was saying, "The sky is falling. The sky is falling."

"Sell Sky!"

I knew some stockbrokers in 1981, when the penny stock market was red hot in Denver. The managers (manipulators) of the house would say dumb things like "Stocks are firming up." What were they doing, making Jello?

One day a broker asked if penny stocks could be sold short. The temperature in the room dropped about 40° degrees!

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