Tag: stock market crash

Why is The Main Stream Media Downplaying the Stock Market Crash?

Did We Just See the Start of a Stock Market Crash?

Stock-Market-CrashNow I am no stock market expert, but last week some very interesting things happened on Wall Street, and the mainstream media is downplaying the whole thing.

First, the Stock Market fell more then 500 points for 2 consecutive days. That is the first time in history the stock market lost that much in 2 consecutive days. Not in the last 10 years, not in the last 20 years… the first time ever.

Second, on Monday August 24th, the stock market lost 1,000 points before lunch. Granted, it gained almost half of that back by the end of trading, but still, 1,000 points is the most the stock market has ever lost in a single day of trading.

Third, Americans lost 2.1 Trillion dollars in 6 days of trading. That is money up in smoke. Gone. I don’t know about you, but I think somebody got screwed in that deal.

On Wednesday the 26th, stocks rose 619 points. That is the third highest single day point gain ever. If you listen to the mainstream media, that is a sign that we are not headed for another recession… but is it? The top 2 single day point gains in the stock markets history were 936 points on October 10th, 2008, and 889 points on October 28th 2008. That point gain doesn’t seem so promising now does it?

Why is the Mainstream Media Saying “Don’t Worry”

So why does the mainstream media keep telling you that everything is ok when it clearly is not? This has a lot to do with the overall problem with the stock market today. The simple truth is, the stock market is broken because people are not using it correctly. The purpose of a stock market is to allow companies to raise capital by selling a stake in their business. As a consumer, we can determine if a company has a strong business model, and creates a good product. If we feel they do, we buy stock in the company. We do this with the hope that the company will indeed do well, and our stock will become more valuable. Then, when we retire, we can sell the stock, and if we were correct, we will have made a profit. Alternately, we can sell the stock if we feel the company is headed in a direction we do not like. If enough people sell a companies stock, then the company will lose value. To prevent this, companies have to maintain a good business plan. This adds to the checks and balances in the corporate world. At least, it does if the stock market worked this way.

Unfortunately, the majority of stocks being bought and sold in todays markets are being done by people trying to make a quick profit. They are gambling on the market, and if enough people loose at once, it affects everyone.

So what does this have to do with the mainstream media pretending the stock markets are not crashing? Simple. The mainstream media is owned by large corporations that need their stocks to be high in order to get loans. So, if they convince the average person that the stock market isn’t crashing, then those people will see the losses on Wall Street as an opportunity to buy stocks at lower prices.

As opposed to giving you the unbiased news, the mainstream media is instead shilling for their corporate leaders and trying to make you bear the brunt of the losses in the stock market crashing by convincing you that this is a good time to buy.

Of course, as I said at the beginning of this post, I am not a stock market expert… If you want to see what one of those is saying about all this, check out Michael Snyder’s blog.

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