Why/how is TARP money being illegally diverted into this speculative stock market bubble?

Where is all the stock market money coming from? People had lost 50% or more of their assets and have been fleeing to Treasurys. The banks are broke except for the TARP funds that are supposed to provide liquidity to municipalities and corporations… so who is diverting funds to speculate in stocks? What new carnage will this latest stock market bubble leave behind? The Obama administrations banking risk management regulations are apparently a joke perpetuated on Americans. Nothing has changed since 1929!

Yesterday while mortgage rates for 15- and 30-year mortgages dropped and the deadline for the first-time homebuyer tax credit for sale closings is coming on November 30, the weekly demand for new and refinanced loans fell during the week ended Sept. 25, according to the Mortgage Bankers Association.

Then yesterday a market reversal took hold after the Chicago Purchasing Managers Index for September registered 46.1; a fall back to levels indicating contraction after the index hit 50.0 in August. Any reading below 50 indicates economic contraction. The weak report drained buyers from economically sensitive market sectors like energy, industrial and consumer discretionary shares and back into Treasurys.

The Chicago report followed a GDP report from the Commerce Department that showed the economy was still contracting at a 0.7% rate in the second quarter, better than the 5.4% it shrank in the fourth quarter of 2008 and the 6.4% it shrank in the first quarter of 2009.

Today, the weekly jobless claims report from the Labor Department is expected to show that claims have risen to 535,000 from 530,000 in the previous week. Continuing claims, a measure of Americans who have been out of work for a week or more, are expected to have risen to 6.178 million from 6.138 million last week. The August pending home sales index is expected to have shrunk to 1% after rising 3.2% in July. Construction spending is expected to have fallen 0.2% in August after dipping by the same amount in July. Federal Reserve Chairman Ben Bernanke will testify at the House Financial Services hearing, starting around 9 a.m. ET.

Market forces October 1

The stock marker yesterday could not sustain a rally after starting with futures higher again. The volume of trading yesterday rose another 30% from as the market declined slightly for a second day. Yesterdays volume was higher than average. But close manipulation is evident when we see a precise 1% decline then normal bubble upward pressure causing a slow advance that is finally capped of with a manipulated decline to leave a small loss.

It appears TARP funds are responsible for this bubble and that the market is being manipulated to disguise the powerful upward price pressure being exerted. We could see a surge in stock prices but then the illegal activity would become obvious and the TARP funds would rapidly disappear as fast as they entered the market and stock prices would collapse.

Comcast wants a Stake GE/NBC/ Pravda, the largest U.S. cable network. It is, according to Bloomberg news, in talks with General Electric Co. to buy a stake. GE can use its Pravda influence to take the government cash left on the table when it gets corrupt government officials to scrap the big military competitor products like the F119 Raptor, the worlds best fighter plane. Controlling the media allows GE/Pravda to pump up corrupt political candidates and to disparage the honest candidates. That is why America politicians are getting the new image of a Chicago mob. That is why the American public is becoming so concerned about corruption, socialism, and loss of American freedoms.

TARP money appears to now be corrupting the financial system. Co-mingling of funds at brokerage houses that are now classified as banks may have run amuck as they did in 1929. The desire to show banking profits is creating the same kind of bubble last seen in 1929 when banks co-mingled investments. The Obama administration will likely go down as the most corrupt government in the history of the U.S.A. if it does not get its government act together soon.

Asian markets were down last night; China/Hong Kong had a holiday, Japan down -1.5%, India up 0.1%, and S. Korea down -1.7%.

European markets are down in the range from -0.3% to -0.7% this morning about half way through their day.

US pre-market futures are down about -0.5% at 7:30 AM EST after yesterday's decline.

In a manipulated market where obviously the corrupt manipulators seek to maximize their own profits, small investors could be cut out completely. Illegal stock market manipulation, the kind that RICO racketeering law applies to… could create a split, two tier, market where certain stocks are pumped up to create absurd profits while the small investors would naturally gravitate to the undervalued stocks that the manipulators would ignore. The manipulated stocks would soar while the small investors would see very little of the illicit gains. The manipulators would call their pumped up stocks, "the best of breed."