Ricks Picks

How the Stock Market Actually Works


Here is the best explanation I’ve seen to date of how the U.S. stock market works.  It is from John Jay, who posts regularly in the Rick’s Picks Forum: “The stock market is the primary bag-man the Federal Reserve uses to transfer the U.S. Dollars they create from thin air to the .01%.” Just so. When you consider how many hundreds of billions of dollars find their way into the pockets of the very rich when just a half-dozen mega-cap stocks rally sharply, you begin to understand how the U.S. economy actually works.

“Compare this to TARP,” writes Jay. “It was a check written directly to the .01% without a money laundering intermediary like the stock market.  You and I are like seagulls picking up the scraps after a killer whale pod consumes a school of herring. We can make a nice little living doing just that!”

$50M for a Hotel on Baltic Ave?

My colleague Alan Newman, editor of Crosscurrents, used to track the total dollar amount each day of all NYSE transactions. If memory serves, it once amounted to more than three times America’s daily GDP. Newman’s conclusion was that the main business of America was not making and selling actual things, but trading stocks.  As much could be said of the global financial system, which has amassed a quadrillion dollars worth of derivatives for paper-pushing deal-makers to play with. Does a world economy that produces $100 trillion dollars worth of actual goods and services really need a financial edifice ten times that size to facilitate business? It’s akin to provisioning a Monopoly game with a $100 billion bank, and making a hotel on Baltic Avenue “worth” $50 mil.

Comments on this entry are closed.

none June 13, 2019, 8:50 am

Human beings can never change but they can evolve.

Because of that:

All things are created towards what is necessary ‘at the time’ of that need.

War is a byproduct of hate and conflict.

All things living and not are in use of or for ‘war’ and the ‘creating’ of it. These conflict create ‘balance or re-balance’ over and over.

“Conflict and how to deal with it is the challenge.”


As, both comments are correct and accurate.

We are having the United States shifting from military to economic warfare. Even in places where the U.S. is still engaged militarily, such as Afghanistan, serious talks are underway for a withdrawal. It’s a positive shift on how to conduct warfare.

This would not have been possible if America as stated in Ricks comments did not take place.

America has in a way develop such a weapon.

Good or bad over time balance will be attain, only to again moving towards getting outta balanced once again.

I know many see or may see this as a ‘dark’ way of thinking, but America is very unique many do not give credited to such. America is an empire but it is not the empires of the pass such as a Roman Empire. It is far different, it has a far more inward look not outward as others of the pass, one which can be seen at 1st glance ‘it does not force’ as it could have it’s ‘standard’ and ‘flag’ be place and fly above all others. This could easy being done as in other times of history by other empires.

America does not and will never have a majority but does have a common wave towards thinking, this is a saving grace of its empire. It is Americas disciple in ‘not doing’ (pulling the trigger quickly) that continues towards directing its ‘moral compass’ like no other empire that ever was.

Thanks Rick I enjoy the thoughts today and have a great day.

Ben June 12, 2019, 11:37 pm

“Does a world economy that produces $100 trillion dollars worth of actual goods and services really need a financial edifice ten times that size to facilitate business?”

If so, then we’re all so freakin’ retarded that we clearly aren’t capable of having a world economy that produces $100 trillion worth of actual goods and services… nor even one dollar’s worth, for that matter!

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