The Era of Artificial Markets: No More Organic Corrections?
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Are we witnessing the end of truly organic market forces? This segment delves into how modern markets, unlike past eras, actively resist natural corrections. From artificially propped-up stocks to suppressed gold and oil, the speaker argues that genuine economic signals are being overridden by pervasive manipulation.
Explore the mechanisms behind this artificiality, including the Federal Reserve's role in keeping treasury yields down and paper contract selling influencing commodities. Discover how political egos and insider trading on market announcements contribute to an environment devoid of authentic market dynamics.
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Transcript
You mention the Bush years or the Clinton years and in in those times there was a willingness to uh to allow some level of correction to happen in markets like housing, for example. But it seems like today, especially with Trump and his enormous ego, they're not willing to let anything uh go through an organic correction, certainly not in stocks. But the only things they want to keep low are artificially low like gold and silver and oil. And that's all through paper contract selling, which is another, you know, manipulation. But it seems like the stock market is always artificially propped up. And it seems like treasury yields are artificially kept down because the Fed will print money to buy the treasuries to keep the yields down. And so we've entered this era of absolute artificiality. There are no organic signals that are allowed to uh propagate in the marketplace. And there's so much manipulation from the White House about announcing this and markets crash, or announce that and commodities rise and a bunch of insiders are making a lot of money on those announcements, clearly with all kinds of betting and options and polymarkets sometimes. But ...