Government Intervention Makes It Worse

They say government intervention into the free markets make it impossible to predict the future of the markets:

http://finance.yahoo.com/tech-ticker/govt.-interference-makes-it-%22almost-impossible%22-to-forecast-stocks-strategist-admits-431206.html

Whenever the economy falters, the government intervenes and "fixes" the problem. They created FDIC to prevent bank failures, they created FED to regulate the economy. They created Fannie Mae, Sallie Mae etc to guarantee mortgages. All of these are a failure. Economy fluctuates with violent recessions and depressions since FED was created. ** Mae are the cause of the housing bubble and the mortgage problems. Once they started purchase the mortgages, why would anybody care if a mortgage was wise to give out?

The government intervention for many decades is the reason of the crash. Mistake was to create FDIC, FED and other GSEs. Existence of FDIC relieves the depositors from the duty of making sure their banks do not take excessive risk. Unchecked by depositors, banks feel free to take excessive risk. If FDIC did not exist, banks would fail before they get too big to fail. Only the sensible would survive.

http://www.tradingstocks.net/html/fdic_insurance.html

The FED has made credit easy for many decades and America has borrowed. When we borrow, banks create money, they do not lend existing money:

http://www.tradingstocks.net/html/banks_create_money.html

This is how US dollar was inflated for decades. Inflation did not happen due to printed money. But it happened due to borrowed money. When the debt expansion stops, money supply will deflate because it is all borrowed money. The US dollar supply is not enough to pay outstanding debt. Credit bubble is too big to fix now, and it is FED's mistake to inflate it for many decades. They set us up for a deflationary crash that will unfold now. Here is the debt problem:

http://www.tradingstocks.net/html/inflation_deflation_credit_bub.html

Thus, despite government intervention, or even because of it, it possible to predict the market direction, and it is down!