Stock Prices

Let's see how it works:  you are major corporation or bank and you can borrow money cheap from govt and others.  So you have a billion cash you are sitting on, although you are obliged to repay it some day.  Nonetheless, it looks good.  "This company has a billion cash!"  No one looks closely, which helps stock prices, so your pension buys this stock.

Next, as the price naturally declines, the insiders in the business begin selling their stock, as part of a business stock-repurchase program.  In spite of the fact this is borrowed money buying the stock, and an insider is selling it, it helps push the price up.  The insiders get out.  They no longer care about the company. Your pension buys it, since to a computer it looks good.

At some point the ponzi game runs out, and the stocks start to fall.  Precipitously.  You scream.  The government responds:  "deregulated markets cannot be trusted with your pensions, so we will guarantee them, take them over.  We'll buy your lousy stock and replace them with US treasury bonds. We will guarantee you a fixed income. Enough for bread and circuses."

Problem solved.  Govt pension, govt housing, govt food, govt entertainment, required drug programs, what more could you want?

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