Wednesday, April 20, 2011

The Investor/Cockroach analogy

~ "Could you keep it down, please...  I'm trying to read the WSJ"

I've used the analogy of Investors as cockroaches a few times this week and a few have asked me why?  The answer is it is as accurate a description as I can find..

1)  You find them usually in the most filthy infestations - like Wall St.
2)  In a case of a nuclear or (economic nuclear) winter, they will be the survivors while everyone else perishes
3) The go as they want... do as they want... and scurry away when chased only to return to doing as they please when its safe
4)  They are hard to kill/destroy.

And a clearer analogy is this-  Imagine living in an apartment infested with them, and instead of the landlord placing bait traps or hiring an exterminator, he instead places slices of birthday cake around your place to attract and 'reward' them.  Why?  Because, to the landlord, the roaches mean more than you.

The 'landlord' is government-  US Government.. the British Govt.. France, Germany, on and on.. every nation that has a stock market of some kind..  and every nation's leader, regardless of political party or persuasion cater to professional Investors and Creditors.

This is why you had/have global bailouts of companies and countries..  why nations in Europe are being forced into austerity..  why the prices of food, fuel, electricity, and every other basic necessity keep going up..  why the Fed and other nations are creating inflation and purposely devaluing their currencies in competition with one another..

Because All these actions are intended to be of benefit to the Investor; the cockroach...

And it is the populace that is secondary always.

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