What does everyone think? Is there direct manipulation in the stock market?
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Do you think there's direct manipulation in the stock market?
- Thread starter flipside21
- Start date
What does everyone think? Is there direct manipulation in the stock market?
Quote from BSAM:
Uh...Is this a trick question?
Direct manipulation would be direct purchases of stocks or futures by the Fed or related entities.
Indirect manipulation would be something like QE policies where bonds are bought from primary dealers and the primary dealers may (but not necessarily) use this money to buy stocks. Operation twist is also an indirect manipulation by lowering long-term interest rates and drive liquid asset prices higher. So, indirect manipulation is more policies aimed at encouraging lifting of stock prices, whereas direct manipulation would be for the Fed to buy stocks directly and stuff it onto its balance sheet. The present Fed balance sheet consists of mortgage and US Treasury bonds rather than stocks.
Absolutely, the big guys scaring the little guys, happens all the time.
No,
there is no manipulation. Big Boys don't even have to manipulate anything. Average Hedge Fund loses money. Customer's money, but each time they are in plus for the year they would chop off profits. Plus the management fee.
The way big institutions are structured, they don't even have to make money to make money.
there is no manipulation. Big Boys don't even have to manipulate anything. Average Hedge Fund loses money. Customer's money, but each time they are in plus for the year they would chop off profits. Plus the management fee.
The way big institutions are structured, they don't even have to make money to make money.
SEC stamped out that sort of thing years ago. Happened in the '20's they say (before the SEC).
Of course conspiracists claim it still goes on every time someone buys index options before a Fed rate cut or a briefing for GS clients by Hank Paulson - that's the tin foil hat brigade for you.
Of course conspiracists claim it still goes on every time someone buys index options before a Fed rate cut or a briefing for GS clients by Hank Paulson - that's the tin foil hat brigade for you.
Quote from flipside21:
Direct manipulation would be direct purchases of stocks or futures by the Fed or related entities.
prior to lehman I'm convinced the fed could (and have in the past) facilitate the buying of stock index futures to lift the market via banks etc, but not direct buying.
Currently, I don't have an opinion on "direct" manipulation because I trust no one in the Fed or what they might do.
If what you said is true, why does FED keep printing money?Quote from FringeAlgo:
I will write this once, if you catch it you catch it
if you don't, well tough luck
QE 1 QE2, and hidden QE3
Federal Reserve, creates billions with computer keyboard, that is converted into BONDS, those bonds are converted into smaller bank computer net assets
those bank assets are converted into stocks/contracts and other bonds
The market goes UP
Dollar goes down. (less so now because other countries are fighting back by devaluing their money too)
Oil goes up
Food goes up
manufacturers make food packaging smaller
Standard of living goes down.
and US debt increases perpetually because FED's money is added as a tax burden.
I bow
and you clap
I exit the stage
Is it the only way to depreciate the value of dollar?
You mentioned that "Because FED right now is de facto entire economy. Economy no longer exists, it has been killed by debt."Quote from FringeAlgo:
Why does the FED keep printing money?
Because FED right now is de facto entire economy. Economy no longer exists, it has been killed by debt.
So in order to avoid collapse of the country, FED is literally creating money to pay the interest on all the loans (foreign and FED loans) and printing enough to move the market up, keep pensions going etc.
If you are a little confused at this point, that's because you are beginning to realize just how fucked we are.
The FED is literally creating money to pay its own debt loans to the government through the government.
The FED has been caught a year ago creating curtain companies to to buy own Fed Bonds while looking like foreign company.
This game can only last until one day it collapses, The fate of United States of America was sealed in 1913 with creation of the FED, and it took 100 years and maybe more. But USA is finished.
As for is this the only way to devalue dollar, NO, but it is most effective way.
Why we are in high debt? Why America has the highest debt in the world? Why we have to borrow so much money so that now FED has to keep printing money to pay its own debt loans? I don't think FED is the reason for the collapse of the America but the high debt.