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Strategies & Market Trends : ahhaha's ahs

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To: GraceZ who wrote (5717)12/10/2002 3:20:51 PM
From: Jorj X MckieRead Replies (3) of 24758
 
Why do you assume that interfering with the equities market directly is necessary to fit the definition of influencing the market?

I believe that the fed money policy was instrumental in the creation of the late 90s bubble. More directly, I believe that there was a causal relationship between the fed money policy and equity prices, whether intended or unintended.

In the past several years, Greenspan has made several direct statements regarding the equity markets. You stated in your response

After 911 the Fed came out and stated that they would provide whatever liquidity that was needed to stabilize the markets and avert a panic. After 911 the Fed came out and stated that they would provide whatever liquidity that was needed to stabilize the markets and avert a panic. .

This indicates to me that you understand that the Fed can influence the direction of the equity market.

And since the FOMC does operate through banks and brokerages that are assigned as primary dealers by the FRB, doesn't it make sense that these activities can have a secondary result that effects the equities market in what appears to be a concerted effort?

Do you think that that secondary effect on the equity market is ever intended by the FRB?
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