Government begins to attack the stock market.

Gerald Ford once said that "A government big enough to give you everything you want is a government big enough to take from you everything you have.".

Back in 2009 when Obama wanted to stop the stock market plunge, he demanded that the central bank intervene at all costs. Debt did not matter.  Income inequality did not matter.  Laws did not matter.  Honesty did not matter.  Fairness or morals did not matter.  Obama saw the markets sliding into the gutter and thought that if he didn't do something that he would get blamed for the collapse even though the seeds for it had been sown well before he got into office.  He also knew that with a nod and a wink he would be able to tip off his pals who would use the unprecedented fed intervention to get filthy rich.  All he said was "buying stocks is a good thing if you have a long-term perspective".  For insiders it was his signal that he was unleashing The Kraken on the failing debt Ponzi.  And so stocks have been on a rocket ship ride since then.

Well, the signs are starting to pile up that the insiders have been told that the party is just about over.  First off, Bernanke scampered out of the Fed like his a$$ was on fire.  Then they replaced him with a bat faced, completely disposable nobody named Janet Yellen.  When "the woman" fails, the men of the fed can sort of roll their eyes like it was her fault when in fact it is going to happen to anyone in that hot seat.  No Ponzi ever ran forever.  Heck, maybe Yellen doesn't understand that it's a Ponzi for all I know.  In any case, When Greenspan's devotee left, there was no longer any tie back to the old guard.  Yellen is nobody's baby.  She is expendable.  Heck, maybe she knows that too!

In addition, after all these years, the government is starting to go after high frequency trading companies saying they have too much advantage.  These guys provide all of the liquidity to the markets.  Who will buy and sell in 1 cent increments when they are gone?  Will it go back to the 1/8th or even 1/4 of a point spread between bid and ask?  That will kill the day traders, another sector that provides liquidity and price determination.

Also, we are now hearing the honchos become worried about "income inequality" which is is doublespeak for I fear we are screwing the little guy with these wealth transfer systems such as QE(x).  If we screw them down too hard, history says they will come and kill us in our beds.  Perhaps we should act like we give a crap about them even though we could not care less".  Bottom line, they know they better stop saving the elite at the expense of the dwindling middle class or riots will turn into civil war.  Heck even NASA of all places funded a study that warned about how if you screw the little guy too hard you eventually end up with "civilization collapse".

Finally, Yellen is tapering another 10 billion and would like to continue that tapering while keeping interest rates near zero.  Good luck with that Yellen.  The only way you get that is if the rest of the world is in turmoil and so they flee their currencies into the "safe haven" of the dollar.  But rumors are that Russia just dumped 100 billion in treasuries out of fear of the assets being frozen over the fracas in Ukraine.  So perhaps we need to reconsider what "safe" means these days.  US treasuries might be the big stack on the poker table so they do have that aspect of safety but we have Mr. shoot from the hip, don't need congress, "Executive Orders" Obama running the show and so anyone can, at any time and for any reason be declared a threat to the interest of the US and their treasuries can be frozen. After all, the US is the market maker for treasuries.  If you are disallowed from participating in the auctions, good luck selling the treasuries.  You cannot just transfer them to someone else without the US knowing.  Once they are frozen, nobody will take them from you in trade for anything.

So what if China continues to side with and to support Russia?  GW Bush already told people our official policy on these matters: you are either fer' us or again' us.  Anyone who does not follow our trading restrictions with Russia will have their treasuries frozen.  So with this "asset freezing" twist, how safe are treasuries really these days?  They are as safe as your obedience to Obama!!  If I were a foreign government I would be heading for the door if these are going to be the rules because even if I didn't have cause to disobey Master Obama, others will.  That means they get stuck holding the worthless paper, sure.  But it also means they will not be future buyers of it and the US NEEDS buyers for this worthless paper "asset".

We will know the US is hacking for patsies to pawn their Ponzi Paper off on when they demand all Americans create a retirement account, fund it every month and invest it in treasuries.  Maybe they will call it something catchy and sheeple-ish like MyRA.  Forced investment into government debt should be treated as an act of treason against American people but that is exactly what the con men plan on doing next.

Bottom line: it is becoming a bad time to be in the markets.