New York Fed Nearly Admits Rigging The Market
nypostonline.com
<< COM'ON. Tell the world that you're rigging the market.
The Federal Reserve is just dying to admit that it has been doing brilliant - but alas, questionable - things to keep the stock market bubble inflated. A Wall Street Journal article on Monday is the closest the Fed has ever come to making this admission, although the newspaper apparently didn't know what it was on to.
The Journal story was about the bailout of the hedge fund, Long-Term Capital Management, and how the Fed stepped in to save the day.
The story gets interesting in the seventh paragraph, when it starts talking about Peter Fisher, the 42-year-old, No. 2 man at the New York Fed, whose official job is running the Fed's trading operation.
In that capacity, Mr. Fisher is the Fed's eyes and ears on the inner workings of stock, bond and currency markets and is given a wide degree of latitude about deciding when certain events pose broader risks, the article says.
He begins most workdays at 5 a.m. by checking the status of overseas markets...and ends them 11 p.m. the same way. In between Mr. Fisher SWAPS intelligence and rumors with traders and dealers from his office in the Fed's 10th-floor executive suite that overlooks the trading floor he runs, the piece continues. >>
Conflict of interest ... naw, they wouldn't trade on information like that, would they?
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