Grasping at Stock Market Straws

Submitted by Bill St. Clair on Sun, 02 Dec 2007 01:23:17 GMT  <== Politics ==> 

Gary North at - commentary on the purchase of 4.9% of Citigroup by Abu Dhabi. [tmm]


The investing community wants to believe that the FED and Abu Dhabi can change the fundamentals of the economy, thereby restoring confidence in the stock market. In other words, the fund managers believe that symbols are more fundamental than the reality of the highly leveraged, self-monitored debt market which has created so many liabilities that the solvency of some of America's largest banks is at stake.

The stock market will need many more interventions by Abu Dhabi and other Arab oil states, which now control the flow of funds America's capital markets.

The great fire sale has begun. Senior American managers have begun to sell the nation's seed corn to the Arabs. They will continue to do so as the economic agents of American people. The sale of 4.9% of Citigroup is a visible turning point.

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