Stocks managed modest gains into the final hour on little real news. The one-year anniversary of the stocks markets rally from 12 year lows occurs this week. From the peak set in October of 2007 the Dow fell 54.4%, the S&P 500 shed 57.7% and the NASDAQ plunged 55.8% hitting their lows in March of last year. Since that time the DOW has surged 63.3%, the S&P 500 jumped 70.8% while the NASDAQ has rocketed 83.8% so at least on a percentage basis it appears that all is right in the world again.
Looked at from a Dollar perspective using a theoretical $100,000 portfolio and the previously mentioned percentages and the picture becomes a lot less dramatic as the DOW turned $100,000 into $74,464, the S&P 500 reduced the same $100,000 to $72,248 while the NASDAQ with an 80+% gain reduced $100,000 to $81,239. All of which serves to illustrate the validity of Warren Buffet’s 2 rules of investing; Rule #1 Don’t lose money; Rule #2 Don’t forget about Rule #1, as losses cut deeper on the way down, simple mathematical fact.
Unlike us and most other nations, perhaps all, that currently have a banking crises the good people of Iceland told their government and the banksters to take a hike when it comes to the citizens tax money being used to pay for their losses. Each citizen was looking at a bill equivalent to $16,400. Despite an overwhelming 93% majority of Icelanders voting down the latest settlement with the banksters the government is actually working on settlement #3 of all things.
At least the citizenry of Iceland has the courage to tell the banksters where to get off. The Argentinians did the same several years back, the mainstream media predicted it would be the end of the world and financial Armageddon for Argentina, yet they came out of the crises quite well after a relatively short period of struggle.
Perverting capitalism in a manner that socializes losses whilst profits remain private is contrary to Adam Smith’s dream, smacks of socialism or worse and is downright un-American. Perhaps we need to follow the example set by the good people of Iceland, demand accountability and inform the banksters that if they require government assistance it can be found at their local unemployment office.
Hi and welcome to The Profit Motive, I’m your host Caleb Lawrence. Once upon a time in America the media acted as the watchdog of the corporations and the state. In the modern era it’s all about ratings and profits, opinion has been substituted for news and frequently is presented as fact. 
