Even amid acknowledgment by US leaders of the need to reassure jittery investors, world markets fell and both fell with the Aug 2 deadline to raise the gov borrowing limit fast approaching. What a joke. We can now see yet another function of the stock market aside from its benchmark for how costly it is to raise funds, and a source of liquidity and enabler of all to participate in the returns from enterprise, and its main function of transferring resources from the people at the bottom of the feeding chain to those at the top while paying for the vast infrastructure needed to provide the above functions.

It's function is to provide a signaling mechanism and excuse for service revenues to be increased and for the geese to be plucked with the least amount of hissing by appeal to the terrible things that would happen if it were left to its own courses and it went down were spending not to be maintained, and service revenues from those who have more than the common man to be putatively increased.

Jack Tierney, President of the Old Speculator's Club, writes: 

I'm not sure if we're all looking at the same markets. I just checked out the 12-month performance for all the major averages. All relatively close to their 12-month highs. If these results are due to "jittery investors" then I confidently predict that the DJ average will crack (or come close to cracking - within 200 pts.) its all-time high by the end of '11 if ANY debt ceiling settlement is reached.

Fear-mongering seems to be at an all-time high. Curiously, leaders of the world's major religions are criticized by some who claim their structures are built through fear utilizing the sweat-labor of gullible peasants. Well, this very sane, quantifiable, transparent capitalist structure we call "the market" appears to operate in much the same manner. Yet it is lauded by many of those same individuals.



To put some conviction behind my surmise, I just purchased some DDM at 65.35. Check back with me next January. 





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