interesting grimer11. my cousin is a broker for a large asian bank on the floor of the mercantile exchange in chicago. he has witnessed these unknown buyers stepping in front of huge selling in the s&p pit and taking the market up. time will tell for how long they will be able to hold it up.
Yesterday's Astounding One Hour "rally"
- Thread starter grimer11
- Start date
So a deeply oversold market bounces off its 200 day moving average, and the only possible explanation is that it's some kind of huge financial market conspiracy? The S&P was still up 300 points from last year at the time of this alleged intervention - hardly crisis levels. If the PPT existed, which is about as likely as the existence of the Yeti or the Loch Ness Monster, then they didn't do a very good job as there have been numerous panics and bear markets since 1988, including the 2nd worst in American financial history. from 2000-2003.
Actually, there have been a few threads with good sources that government does support the markets quite heavily. The government has admitted several times that they do perform market operations to support the American investor. I think in the 1990s during the Thailand, Latin America and Russian crises, the Fed has stepped into the equity markets as well as in the money supply with rates.
PPT does exist. The Nikkei has government support, like the national banks still holding equities bought from the top and not selling in order not to attribute the losses. Almost every government involves itself in support of their equity markets. It's good sense.
FOREX markets are manipulated every day by every major country in their individual favor.
It's just naive to think that everything is so nice and dandy in the US equity markets. There is already so much damn manipulation with specialists, MMs, hedge funds, I-Banks so why would not the government be involved.
BTW, those crazy rips like the one on Wednesday are quite unnatural. I'm sure the Fed starts them off and the MA technical signal is perfect since so many traders, big and small, will support it as well.
PPT does exist. The Nikkei has government support, like the national banks still holding equities bought from the top and not selling in order not to attribute the losses. Almost every government involves itself in support of their equity markets. It's good sense.
FOREX markets are manipulated every day by every major country in their individual favor.
It's just naive to think that everything is so nice and dandy in the US equity markets. There is already so much damn manipulation with specialists, MMs, hedge funds, I-Banks so why would not the government be involved.
BTW, those crazy rips like the one on Wednesday are quite unnatural. I'm sure the Fed starts them off and the MA technical signal is perfect since so many traders, big and small, will support it as well.
How are u sure?
Did u see Greenspan clicking the buy button on the Fed's Ameritrade account. Gee.. I wonder how much Ameritrade charges them in commision after they move $1 billion. Is it still $9.95???
--MIKE
If Mecro is right I wonder why the Fed lowered rates and flooded the banks with liquidity during the 1987 crash when all they had to do was step in and buy a few stocks?
Why would they do such a thing so secretly when they could use methods like "moral suasion" and others that they use to move or calm the bond markets. Just the threat of the Fed stepping in to buy billions in stocks would move the market.
And, if they are secretly supporting the market with their buying, when do they sell? Or do the securities just go on the Treasury's books and stay there? If so, I wish they would send me my share of those certificates in the mail. :eek:
Why would they do such a thing so secretly when they could use methods like "moral suasion" and others that they use to move or calm the bond markets. Just the threat of the Fed stepping in to buy billions in stocks would move the market.
And, if they are secretly supporting the market with their buying, when do they sell? Or do the securities just go on the Treasury's books and stay there? If so, I wish they would send me my share of those certificates in the mail. :eek: