http://www.theundergroundinvestor.com/2007/08/20/how-much-does-the-government-really-manipulate-markets/ The definitive investment blog for investment news not discussed in the mainstream media Sat, 11 Oct 2008 01:20:35 +0000 http://wordpress.org/?v=2.0.3 http://www.theundergroundinvestor.com/2007/08/20/how-much-does-the-government-really-manipulate-markets/#comment-27774 Mon, 12 May 2008 03:40:42 +0000 http://www.theundergroundinvestor.com/2007/08/20/how-much-does-the-government-really-manipulate-markets/#comment-27774 [...] After all, even though a Presidential executive order established the Working Group on Financial Markets in 1988, people disputed its existence for years. Only when government officials began to publicly mention it by name did the argument surrounding its very existence finally die. But this isn’t even where all the speculation ends. In recent years, there also have been numerous allegations that the big banking institutions on Wall Street have informal agreements to prop up the stock market with well-timed purchases of certain stocks to boost investor confidence during periods when confidence is faltering. Of course, the only way to ever prove these allegations is to be privy to the innermost circles of these banks, so it can never be done (for one such example of such possible manipulation, consider anomalies that have surrounded GM stock). Again, comments by Fed officials themselves keep these accusations alive. According to the Financial Times, a Fed official who asked to remain anonymous told them that they considered “buying U.S. equities” — not just futures to prop up stock markets after the 9/11 terrorist attacks. The Fed, said the official, could “theoretically buy anything to pump money into the system,” including “state and local debt, real estate and gold mines, any asset.” [...] […] After all, even though a Presidential executive order established the Working Group on Financial Markets in 1988, people disputed its existence for years. Only when government officials began to publicly mention it by name did the argument surrounding its very existence finally die. But this isn’t even where all the speculation ends. In recent years, there also have been numerous allegations that the big banking institutions on Wall Street have informal agreements to prop up the stock market with well-timed purchases of certain stocks to boost investor confidence during periods when confidence is faltering. Of course, the only way to ever prove these allegations is to be privy to the innermost circles of these banks, so it can never be done (for one such example of such possible manipulation, consider anomalies that have surrounded GM stock). Again, comments by Fed officials themselves keep these accusations alive. According to the Financial Times, a Fed official who asked to remain anonymous told them that they considered “buying U.S. equities” — not just futures to prop up stock markets after the 9/11 terrorist attacks. The Fed, said the official, could “theoretically buy anything to pump money into the system,” including “state and local debt, real estate and gold mines, any asset.” […]

]]> http://www.theundergroundinvestor.com/2007/08/20/how-much-does-the-government-really-manipulate-markets/#comment-14591 Sun, 04 Nov 2007 00:54:19 +0000 http://www.theundergroundinvestor.com/2007/08/20/how-much-does-the-government-really-manipulate-markets/#comment-14591 [...] Aug. 20, 2007  - How Much Does the Gov’t Really Manipulate Markets [...] […] Aug. 20, 2007  - How Much Does the Gov’t Really Manipulate Markets […]

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