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Strategies & Market Trends : ahhaha's ahs

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To: Jorj X Mckie who wrote (5719)12/10/2002 3:39:29 PM
From: GraceZRead Replies (1) of 24758
 
Why do you assume that interfering with the equities market directly is necessary to fit the definition of influencing the market?

The discussion, if you've followed it from the beginning, was about whether or not the Fed interfered in the equities markets by directly buying or selling of equities or index futures in their operations. They do not, they operate in the debt markets.

It's been stated many times here on this thread that the loose monetary policy in the late 90s had the unintended consequence of feeding the equity asset bubble.

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?

So is it your contention that the member banks conspired with the Fed to bring asset prices down in the last two years? That's a pretty serious allegation.
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