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Is the Fed buying stocks ?
- Thread starter trade2live
- Start date
Quote from S2007S:
Well said.
What Europe is doing is just a quick fix, just like the one they did here int he US, they figure lets release these programs, bailout the losers and keep spending money until the crisis just magically disappears, what they fail to understand is that this credit crisis still exists, its not going away anytime soon.
It continues to be a "kick the can down the road" philosophy, which delays the inevitable. And yes, Europe has now joined the party. One day (and it may this year, next year, or in 5 years), we are going to see a mass implosion of world and capital markets. Gold @ $ 1,680/ounce will look like a steal when that day comes.
yes, they buy stocks indirectly thru bond purchases which forces people to buy higher risk assets when comparative riskless yields are too low. like how china and russia sells arms indirectly to iran through north korea.
Operation twist POMO started the same exact day the rally started. Coincidence?
Operation twist POMO started the same exact day the rally started. Coincidence?
Quote from rew:
No, the Fed doesn't buy stocks. Stocks crashed in the first place because of concerns that the European debt crisis would cause massive bank failures. Stocks are rallying now because the market has judged that the Europeans will paper over the Greek losses and probably keep things limping along for another year. (The European debt crisis will then reappear and the stock market will crash again.)
Of course the American debt crisis is looming over the horizon, but since we can print the money the resolution of our debt crisis will probably take the form of massive inflation rather than failing banks.
I am not sure if any body noticed but the volume on Friday the 21st during the first two minutes (9:31 and 9:32 AM ) was close to 85+ million?
My math could be wrong but that is little less one Trillion dollars. I arrived to this number by: 85M * 11,500 = 977,500,000
Who has this much money to buy?
Who ever it was, I believe their intention was to cause a short squeeze and to push the market up despite of the bad news in Europe.
My math could be wrong but that is little less one Trillion dollars. I arrived to this number by: 85M * 11,500 = 977,500,000
Who has this much money to buy?
Who ever it was, I believe their intention was to cause a short squeeze and to push the market up despite of the bad news in Europe.