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Pastimes : Ask Mohan about the Market

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To: tekgk who wrote (7996)11/15/1997 10:52:00 AM
From: Jack Clarke  Read Replies (4) of 18056
 
Tekgk:
Nice to see you back. Good info on FR, especially the part about the foreign operations not being subject to audit.
What worries many of us also is the suspicion that they are directly intervening in the markets -- manipulation, in plain language -- to keep panic away and sacrificing the short sellers in the process, but perhaps only postponing and worsening the eventual crash. They seem to have the power to do this, since one of the FR's responsibilities is "maintaining the stability of the financial system and containing systemic risk that may arise in financial markets." See:

bog.frb.fed.us

So, it seems they have the right to manipulate the market. My only question is, are they?

Jack
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