hornblower
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ref safesignal
look on this b.b.
look on this b.b.
PPT - Plunge Protection Team. AKA President’s Working Group on Financial Markets.
Do you believe in such an entity ?
Go to Google and type in Executive Order 12631. You will find the Executive Order, and even a 14 November 2003 statement from Secretary of the Treasury John Snow giving a brief history of the Working Group, describing its policy advisory activities.
Would such a group have an interest in the Dow at current levels ?
Todays action from the Fed and the Treasury suggests that they have a very strong interest.
The Treasury announced a Term Investment Option auction of $1.5b today. Auction will take place tomorrow with a maturity of six days.
Temporary Open Market Operations placed $6.75b for a net drain of $2.0b.
Both of the above are temporary liquidity injections. The money will wash around the markets for up to 28 days (Six days in this case).
But of greater significance is the Permanent Open Market Operation from the Fed today. This places $988m into the markets. No short term maturity. It goes in and stays in.
This article from 2003 gives some insight into the effect on the indices. According to the author, there is a multiplier effect to these permanent liquidity injections. x 9.
Edit:
Since the April 05, the Fed has conducted 8 coupon passes totalling $7.396b.
Raise interest rates with one hand and pump with the other.
Do you believe in such an entity ?
Go to Google and type in Executive Order 12631. You will find the Executive Order, and even a 14 November 2003 statement from Secretary of the Treasury John Snow giving a brief history of the Working Group, describing its policy advisory activities.
Would such a group have an interest in the Dow at current levels ?
Todays action from the Fed and the Treasury suggests that they have a very strong interest.
The Treasury announced a Term Investment Option auction of $1.5b today. Auction will take place tomorrow with a maturity of six days.
Temporary Open Market Operations placed $6.75b for a net drain of $2.0b.
Both of the above are temporary liquidity injections. The money will wash around the markets for up to 28 days (Six days in this case).
But of greater significance is the Permanent Open Market Operation from the Fed today. This places $988m into the markets. No short term maturity. It goes in and stays in.
This article from 2003 gives some insight into the effect on the indices. According to the author, there is a multiplier effect to these permanent liquidity injections. x 9.
Edit:
Since the April 05, the Fed has conducted 8 coupon passes totalling $7.396b.
Raise interest rates with one hand and pump with the other.
Last edited:
starspacer
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"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." -- Rothschild Brothers of London, 1863Minder said:
Good post Minder. Makes me wonder whether it (PPT) was used 7/7 when Dow futures reversed course from -200 to close +32.
In a way it all makes sense. They can't explicitly say when they operate as that would give a one way bet to traders. On the other hand, it's good disaster management to have something in place to prevent another 1987 style meltdown.
Well done Minder.
starspacer
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Watch out for the 7.30pm (UK time) counter-trend reversal that often occurs.Pat494 said:
What's this talk of hitting 10700? I understand most of you day trade and have miles more experience than me but go here Dow 6 month graph * and decide for yourself. It looks to me like its about to drop of a cliff to at least 10300. I believe something similar is going to happen like the mid may - jul graph.
Any thoughts on this?
*You may have to select 6 months from srop down list.
Any thoughts on this?
*You may have to select 6 months from srop down list.
starspacer
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Yes. Please don't take this the wrong way Vedrex but the fact that you (and many others) believe it's about to drop of a cliff will probably mean Dow 11,000 before year end...and then it will drop off the cliff :cheesy: :cheesy:vedrex said:
starspacer said:
Starspacer, what brings you to this thread ?
Correct me if I am wrong, but I was under the impression that the job of the Federal Reserve was to administer monetary policy, not to intervene in the markets.
The NYSE already has circuit breakers and trading collars that will effectively suspend trading if the moves are sufficiently large to cause a panic.
Intervention in the markets skews the process of price discovery. So the markets are no longer free. Can a process of sustained intervention dictate market direction. In the short term the answer is obviously yes, but in the longer term I believe that these efforts will be in vain.
Racer
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Have the markets ever actually been free? There has always been some sort of manipulation going on.. read Reminiscences of a Stock Operator, that describes the markets 100 years ago. Where money is concerned you will always get fraud and deceit, because greed is involved.. Enron etc., etc.
Pat494
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Racer said:
The Bank of England was pumping up the value of the pound since before the war. It was only when George Soros and others were found to be siphoning off billions and UK taxpayers were pumping in billions that the genious' at the Bank finally realised that the currency should float. Similarly I think China may yet regret THEIR OWN efforts to distort the market in their own favour. Keep the playing field level and the chances of a good game increase imho. :!:
The reason I mention this, is that the extra amounts of oil revenues, bank profits etc. are mainly going into the stock markets. You may wonder why the Dow for instance doesn't go up and up. I think you have probably guessed what happens ( unless I have got it all completely wrong ).
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