If ever a clearer reason existed that the Public and its elected representatives should not be stampeded into action by the machinations of the Stock Market((s), yesterday's and today's trading on the New York Stock Exchange (NYSE) could not be a clearer indication of the irrationality that always underlies these speculative markets.

Yesterday was the 778 point bloodbath in the Dow (and the broader market as well) that the Elites have been indicating would be the result of failing to pass the Goldman Sachs Bailout Plan. It was the largest point decline in the Dow's long history, ostensibly "wiping out" $1.2 trillion of on-paper wealth.

That was yesterday. Today, with no passage on the Plan, that same market recouped 485 of those lost points, the second largest point GAIN in the history of the Dow, earning back 64% of the alleged $1.2 trillion loss, or a mere $768 billion, coincidentally, the approximate cost of the Goldman Sachs "rescue" plan.

Was that plan voted on and passed today? Nope. But did the usual (suspect) analysts explain this rally as renewed hope the plan would pass? Yep. Do these analysts have any better idea than you or I why the market dropped yesterday and exploded up today? ABSOLUTELY NOT!

These oracles, like their religion counterparts, can rationalize PAST action in words so plausible that they almost must be true. And since there are essentially no competing views to theirs that garner media attention, both the Public and their Reps are sucked into the rational verbiage these pros have been dishing out since time immemorial.

Remember the Oil Bubble? Explanations, by these same analysts, ranged from hurricanes, to planned terrorist attacks, to the sudden discovery that China and India existed as the justificatory discourse in the speculative orgy of Hedge Funds and others to capitalize in newly-unregulated oil futures contracts.

The bubble popped at a little over $147/barrel, dropped like a lead balloon nearly 40%. The analysts duly noted the slowdown in in the world economy---as if the world economy or China's or India's economy has slowed down 40% in a couple of months!

The gyrations of speculative markets--be they stocks or oil--must be bracketed when decisions regarding the looting of the Treasury for private interests is concerned.

The People have the common sense to do that; it's their elected Reps, of both parties, that will find it harder to resist the big guns of speculative Wall Street.

MyBlog: http://ProteanPerspectives.blogspot.com