To the best of the Federal Reserve’s ability rising stock prices are being orchestrated. This is possible to the degree, everything goes as planned, there are no exogenous negative events or unforeseen consequences. Does this mean everyone makes a profit? All it means is that everyone who owns stock can borrow against their holdings. What about just selling stocks? Once any significant number of people begins selling stock, the bottom will fall out, possibly overnight. In mass, everyone with holdings can borrow against stock and spend. They can’t sell and take a profit. A handful can get out near the top, but all others who own stock are going to take a beating. Folks who buy on margin will eventually be forced to sell out at huge losses. Today’s stock market is highly illiquid. Almost all trading is short term, not in terms of days, but fractions of seconds. There is no actual liquidity. Any larger than average number of sellers will cause a complete collapse of stock prices.

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