{"id":38598,"date":"2013-06-03T14:16:12","date_gmt":"2013-06-03T13:16:12","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/breaking-news\/computers-cant-hear-you-scream-when-stocks-collapse\/38598\/"},"modified":"2013-06-03T14:16:12","modified_gmt":"2013-06-03T13:16:12","slug":"computers-cant-hear-you-scream-when-stocks-collapse","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/breaking-news\/computers-cant-hear-you-scream-when-stocks-collapse\/","title":{"rendered":"Computers can't hear you scream when stocks collapse"},"content":{"rendered":"
\n\t\t\t\t\t<!–Max Keiser<\/a>–><\/p>\n

Max Keiser, the host of RT’s \u2018Keiser Report,\u2019 is a former stockbroker, the inventor of virtual specialist technology and co-founder of the Hollywood Stock Exchange.<\/p>\n<\/p><\/div>\n

How can stocks be trading at all-time highs if the public is not investing?<\/p>\n

\n Should the \u2018little guy\u2019<\/i> start buying stocks? This question
\n is being posed by pundits on financial-casino channels like CNBC
\n who apparently feel sorry that individual investors (who are
\n still down 45% from the net worth levels robbed during the 2008
\n crisis) aren\u2019t \u2018participating\u2019<\/i> in this rally.\n<\/p>\n

\n The question is backwards. The question should be, if the public
\n is not investing in stocks how are stocks trading at all-time
\n highs?\n<\/p>\n

\n Buyers in stocks come from several sources; companies buying back
\n their own stock, mergers and acquisitions, institutional
\n investors (like pension funds) and algorithmic trading bots –
\n that constitute over 85% of all trading on the New York Stock
\n Exchange.\n<\/p>\n

\n Do you see what I see? Stocks are trading at all-time highs
\n because computers are buying stocks for other computers; funded
\n by borrowed money lent to them by government computers – kept
\n artificially cheap – thanks to central bank\u2019s computers keeping a
\n lid on interest rates at \u00bd%\n<\/p>\n

\n Unless you are a bot, or a drone, this is not the time for
\n individuals to be buying stocks. This is the time for individuals
\n to buy Gold, one of the best performing asset over the past 12
\n years, set to continue outperforming for another 12 years.\n<\/p>\n

\n There\u2019s never been a better time to buy Gold. The money supply
\n (and supply of debt) has never been higher in either America\u2019s
\n 238 year history or in Britain, going back to the time of the
\n creation of the Bank of England in 1694.\n<\/p>\n

\n Computers are pushing prices for bonds and paper currencies
\n higher despite this historic moment of unprecedented increased
\n supply: an economic impossibility that can only occur – as it is
\n now – via massive, coordinated market manipulation by governments
\n and their computers. The price of Gold and Silver – during this
\n period of record shattering global demand – has been trading
\n down. Again, an economic impossibility that can only occur via
\n massive government intervention using computers programmed to
\n override price discovery.\n<\/p>\n

\n Don\u2019t get caught up in the hype of the recent Dow Jones spike.
\n Remember that up until just a few months ago shares in Warren
\n Buffett\u2019s Berkshire Hathaway, despite all the recent hype, has
\n been \u2018dead money\u2019 (no price gain at all) for a decade. Apple and
\n Google are higher, but the NASDAQ is still about 2,000 points
\n beneath the high it reached in 2000. Stocks have been going
\n sideways for more than a decade even though the government in the
\n U.S. has injected more than $16 trillion in fiat currency coupons
\n to bailout thieving ‘banksters’<\/i> and corrupt
\n politicians.\u00a0<\/span>\n<\/p>\n

\n Getting back to Gold, adjusted for the increase in money supply,
\n Gold is now cheaper at $1400 than it was at $500. That\u2019s right.
\n There are exponentially more uncollateralized Federal Reserve
\n Notes (aka US dollars) electronically circulating through the
\n dying beast known as the US economy now relative to the supply of
\n Gold than back when Gold as at $500, while debt has increased by
\n hundreds of percentage points and wages are up less than 1%.
\n Margin debt (the money that is borrowed to buy stocks) on the New
\n York Stock Exchange is at an all-time high. The global debt and
\n derivatives pile recently topped $1 quadrillion.\n<\/p>\n

\n The only buyers of stocks are computers who are buying for other
\n computers. And when the market crashes again as it most certainly
\n will, the computers won\u2019t really care much.\n<\/p>\n

\n Remember, on the stock market, when High Frequency Trading wipes
\n out your net worth; computers can\u2019t hear you scream.\n<\/p>\n

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.<\/p>\n

<\/p>\n

This article originally appeared on: RT<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

<!–Max Keiser–> Max Keiser, the host of RT’s \u2018Keiser Report,\u2019 is a former stockbroker, the inventor of virtual specialist technology and co-founder of the Hollywood Stock Exchange. How can stocks be trading at all-time highs if the public is not investing? Should the \u2018little guy\u2019 start buying stocks? This question is being posed by pundits […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[487],"tags":[],"class_list":{"0":"post-38598","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-breaking-news"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/38598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=38598"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/38598\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=38598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=38598"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=38598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}