Wall Street's Role in Shaping a Risk-Fueled Stock Market
Warren Buffett Slams Wall Street for Promoting Speculative Stock Market Practices
(This perspective from two years ago).
In speaking to the annual shareholders meeting in April of 2022, Warren Buffett offered some insight into where things were at the time. As you know, Mr. Buffett has been known to be on of the shrewdest investors of our time.
He lambasted Wall Street for encouraging speculative behavior in the stock market, effectively turning it into a “gambling parlor.” (Remember, from two years ago).
“Wall Street makes money, one way or another, catching the crumbs that fall off the table of capitalism,” Buffett said. “They don’t make money unless people do things, and they get a piece of them. They make a lot more money when people are gambling than when they are investing.”
Buffett bemoaned that large American companies have “became poker chips” for market speculation.
The problem is that most investors and traders either fail to recognize that markets are cyclical, or forget to expect the end of the current market phase. Take a few minutes and read my full explanation of market cycles.
One Third of Jobs “Created” in 2023, Were Not Created
The Bureau of Labor Statistics' (BLS) employment data are often fabricated by the US government. The organization celebrated the creation of 3,140,000 new jobs in 2023 at first, but later lowered the number to 443,000. However, there's more: in March, the BLS miscalculated by 306,000 jobs. This indicates that a “miscalculation” accounted for one-third of all newly created positions in 2023.
It's obvious that they made up the job expansion under Biden after COVID rules. Naturally, the economy created thousands of new jobs—you stopped companies from operating for years! Using this fraudulent data, the Federal Reserve set monetary policy while consistently praising a robust labor market as one of the economy's bulwarks.
Approximately 25% of the jobs we believed were added last year have been revised away when you take into account all of the monthly revisions and the annual benchmark revision. There have been two previous recessions when there was a similar pattern of constant negative revisions. The BLS's inability to modify its technique in response to the market's quick changes is the reason behind the persistent inaccuracies in the non-farm payroll measurement process.
When they first produce their reports, they are therefore in general knowledge of employment in the nation. Until the data settles, why even distribute them? They are aware that central banks and other institutions take this data into account when making plans, and that the markets spike in anticipation of the monthly jobs figures. - Armstrong Economics
Frank Kafka Wrote “The Trial” in 1914
The book was published posthumously in 1925, and remains a seminal work in the realm of existential literature. It is a profound narrative that delves into themes of bureaucracy, arbitrariness of authority, and the human condition's existential angst. The protagonist, Josef K., wakes up one morning to find himself under arrest for an unspecified crime. The narrative unfolds in a dreamlike sequence, with events that seem both realistic and absurd.
At its core, "The Trial" is an exploration of bureaucracy and the overwhelming power of institutions. Josef K.’s odyssey through the judicial system symbolizes the individual’s struggle against an opaque and unfathomable authority.
Kafka portrays a bureaucracy that is not only impersonal and indifferent. The novel’s depiction of a convoluted and inaccessible legal system critiques the dehumanizing effect of bureaucracy and the loss of individual agency within such structures.
Despite being written over a century ago, "The Trial" holds significant contemporary relevance. In an age where bureaucratic systems have grown more complex and pervasive, Kafka's narrative resonates with those who feel marginalized or oppressed by impersonal institutions. The novel's exploration of the individual's place within societal structures continues to be a pertinent issue in modern discourse, particularly in discussions surrounding personal freedom, state authority, and the role of legal systems.
